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CSHB 297(EDC): "An Act establishing the governor's performance scholarship program and relating to the program; establishing the governor's performance scholarship fund and relating to the fund; relating to student records; making conforming amendments; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 297(EDC) 01 "An Act establishing the governor's performance scholarship program and relating to 02 the program; establishing the governor's performance scholarship fund and relating to 03 the fund; relating to student records; making conforming amendments; and providing 04 for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 14.03 is amended by adding a new section to read: 07 Sec. 14.03.113. District determination of scholarship eligibility. A school 08 district shall determine whether a student who graduates from a high school in the 09 district is eligible for an award of a merit-based governor's performance scholarship 10 under AS 14.43.810 - 14.43.890. If a student is eligible, the district shall state in the 11 student's permanent record the highest level of funding for which the student is 12 eligible. A district shall provide a student with an opportunity to request that the 13 district correct an error in the eligibility determination. 14 * Sec. 2. AS 14.07.020(a) is amended to read:

01 (a) The department shall 02 (1) exercise general supervision over the public schools of the state 03 except the University of Alaska; 04 (2) study the conditions and needs of the public schools of the state, 05 adopt or recommend plans, administer and evaluate grants to improve school 06 performance awarded under AS 14.03.125, and adopt regulations for the improvement 07 of the public schools; 08 (3) provide advisory and consultative services to all public school 09 governing bodies and personnel; 10 (4) prescribe by regulation a minimum course of study for the public 11 schools; the regulations must provide that, if a course in American Sign Language is 12 given, the course shall be given credit as a course in a foreign language; 13 (5) establish, in coordination with the Department of Health and Social 14 Services, a program for the continuing education of children who are held in detention 15 facilities in the state during the period of detention; 16 (6) accredit those public schools that meet accreditation standards 17 prescribed by regulation by the department; these regulations shall be adopted by the 18 department and presented to the legislature during the first 10 days of any regular 19 session, and become effective 45 days after presentation or at the end of the session, 20 whichever is earlier, unless disapproved by a resolution concurred in by a majority of 21 the members of each house; 22 (7) prescribe by regulation, after consultation with the state fire 23 marshal and the state sanitarian, standards that will assure healthful and safe 24 conditions in the public and private schools of the state, including a requirement of 25 physical examinations and immunizations in pre-elementary schools; the standards for 26 private schools may not be more stringent than those for public schools; 27 (8) exercise general supervision over pre-elementary schools that 28 receive direct state or federal funding; 29 (9) exercise general supervision over elementary and secondary 30 correspondence study programs offered by municipal school districts or regional 31 educational attendance areas; the department may also offer and make available to any

01 Alaskan through a centralized office a correspondence study program; 02 (10) accredit private schools that request accreditation and that meet 03 accreditation standards prescribed by regulation by the department; nothing in this 04 paragraph authorizes the department to require religious or other private schools to be 05 licensed; 06 (11) review plans for construction of new public elementary and 07 secondary schools and for additions to and major rehabilitation of existing public 08 elementary and secondary schools and, in accordance with regulations adopted by the 09 department, determine and approve the extent of eligibility for state aid of a school 10 construction or major maintenance project; for the purposes of this paragraph, "plans" 11 include educational specifications, schematic designs, and final contract documents; 12 (12) provide educational opportunities in the areas of vocational 13 education and training, and basic education to individuals over 16 years of age who 14 are no longer attending school; 15 (13) administer the grants awarded under AS 14.11; 16 (14) establish, in coordination with the Department of Public Safety, a 17 school bus driver training course; 18 (15) require the reporting of information relating to school disciplinary 19 and safety programs under AS 14.33.120 and of incidents of disruptive or violent 20 behavior; 21 (16) establish by regulation criteria, based on low student performance, 22 under which the department may intervene in a school district to improve instructional 23 practices, as described in AS 14.07.030(14) or (15); the regulations must include 24 (A) a notice provision that alerts the district to the deficiencies 25 and the instructional practice changes proposed by the department; 26 (B) an end date for departmental intervention, as described in 27 AS 14.07.030(14)(A) and (B) and (15), after the district demonstrates three 28 consecutive years of improvement consisting of not less than two percent 29 increases in student proficiency on standards-based assessments in math, 30 reading, and writing as provided in AS 14.03.123(f)(2)(A); and 31 (C) a process for districts to petition the department for

01 continuing or discontinuing the department's intervention; 02 (17) notify the legislative committees having jurisdiction over 03 education before intervening in a school district under AS 14.07.030(14) or redirecting 04 public school funding under AS 14.07.030(15); 05 (18) administer duties assigned to the department under the 06 governor's performance scholarship program established in AS 14.43.810 - 07 14.43.890. 08 * Sec. 3. AS 14.42.030(e) is amended to read: 09 (e) The commission may 10 (1) adopt regulations under AS 44.62 (Administrative Procedure Act) 11 to 12 (A) carry out the purposes of 13 (i) AS 14.43.091 - 14.43.890 [AS 14.43.091 - 14 14.43.750], 14.43.990, AS 14.44, and AS 14.48; and 15 (ii) AS 14.43.910 and 14.43.920 as they relate to the 16 purposes of AS 14.43.091 - 14.43.890 [AS 14.43.091 - 14.43.750], 17 14.43.990, AS 14.44, and AS 14.48; 18 (B) ensure compliance with the requirements imposed by state 19 and federal statutes and regulations governing the guaranty, insurance, 20 purchase, or other dealings in eligible loans by federal agencies, 21 instrumentalities, or corporations; and 22 (C) establish standards for the 23 (i) administration of hearings conducted under 24 AS 14.43.153; and 25 (ii) administrative enforcement of collection orders 26 under AS 14.43.151 - 14.43.155; 27 (2) delegate to the executive director of the commission or a 28 subcommittee of the commission any duty imposed on or power granted to the 29 commission by this chapter, AS 14.43, AS 14.44, or AS 14.48, except its power to 30 adopt regulations and its duty to consider appeals under AS 14.43.100(b) and 31 AS 14.48.120;

01 (3) establish task forces, committees, or subcommittees, not 02 necessarily consisting of commission members, to advise and assist the commission in 03 carrying out its functions; 04 (4) contract with or use existing institutions of postsecondary 05 education or other individuals or organizations to make studies, conduct surveys, 06 submit recommendations, or otherwise contribute to the work of the commission; 07 (5) establish fees for the review of an out-of-state institution that 08 (A) requests approval for participation in the programs under 09 AS 14.43.091 - 14.43.750, 14.43.990, and AS 14.44; and 10 (B) is not accredited by a national or regional accreditation 11 association recognized by the Council for Higher Education Accreditation; and 12 (6) collect all fees and costs incurred in collection of the amount owed 13 on a loan or repayment obligation if the loan or repayment obligation becomes 14 delinquent or in default; in this paragraph, fees and costs include attorney fees, court 15 costs, and collection fees charged by a collection agency. 16 * Sec. 4. AS 14.43 is amended by adding new sections to read: 17 Article 11A. Governor's Performance Scholarship Program. 18 Sec. 14.43.810. Governor's performance scholarship program established; 19 Alaska residency. (a) The governor's performance scholarship program is established 20 for the purpose of ensuring that a rigorous curriculum is available in all high schools 21 in the state and to provide scholarships for high school graduates who are Alaska 22 residents to attend a qualified postsecondary institution in the state. The program 23 includes a merit-based academic scholarship, a merit-based career and technical 24 school scholarship, and an unmet financial need scholarship supplement. The merit- 25 based academic scholarship consists of three levels of awards. The merit-based career 26 and technical school scholarship consists of one level of award. 27 (b) The department shall design the programmatic standards for the 28 scholarships and appeals of adverse decisions. The commission shall administer the 29 daily operations of the program and financing of the program, including the 30 procedures for applying for the scholarships, establishing standards for and ensuring 31 continuing compliance with programmatic standards, and requiring students to apply

01 for other non loan financial aid, consistent with federal law. The respective agencies 02 shall adopt necessary regulations under AS 44.62 after consultation with each other. 03 The department may change the regulations under AS 44.62 relating to the 04 programmatic standards for required academic achievement for eligibility only by 05 giving advance public notice at least one school year before the effective date of the 06 change. 07 (c) For purposes of the program, a student is an Alaska resident if the student 08 meets the requirements for establishing residency under AS 01.10.055. 09 (d) The program shall be administered to further the following goals: 10 (1) increasing high school graduation rates in the state; 11 (2) improving academic performance of students in kindergarten 12 through grade 12 in the state; 13 (3) improving preparedness of Alaska students for postsecondary 14 education; 15 (4) improving the quality of the educational programs offered by high 16 schools in the state; 17 (5) increasing the scores of high school students in the state on college 18 entrance examinations; 19 (6) increasing job training opportunities in the state; 20 (7) improving the postsecondary academic achievement and 21 graduation rates of students in the state; 22 (8) expanding the pool of high school students in the state who pursue 23 postsecondary opportunities; 24 (9) providing a rigorous curriculum in all high schools in the state; 25 (10) increasing participation of Alaska high school students in Alaska 26 postsecondary institutions. 27 Sec. 14.43.815. Qualifications of applicants. (a) A student may apply for a 28 governor's performance scholarship to attend a qualified postsecondary institution in 29 the state if the student 30 (1) has applied or intends to apply for admission to the institution; 31 (2) is an Alaska resident who has

01 (A) graduated, or will graduate not later than six months after 02 the date of the application, from a high school in the state, including a public 03 school, private school, and home school; 04 (B) graduated, or will graduate not later than six months after 05 the date of the application, from a high school outside of the state under 06 circumstances allowed by the department; for purposes of this subparagraph, 07 allowable circumstances include a circumstance in which a high school student 08 who is an Alaska resident has attended high school in the state and has left the 09 state because of the military service of the student's custodial parent who is an 10 Alaska resident; 11 (3) will receive and use, while an Alaska resident, the scholarship at a 12 qualified postsecondary institution in the state not later than six years after the 13 beginning of the first school year after a student's graduation from high school, unless 14 the student qualifies for an extension of time allowed by the department; for purposes 15 of this paragraph, standards for extension of time may include not more than two 16 additional years if the student is in military service; and 17 (4) meets other minimum qualifications to apply or continue to be 18 eligible for a governor's performance scholarship. 19 (b) A student is not qualified to receive a governor's performance scholarship 20 if the student 21 (1) has not complied with the military selective service registration 22 requirements imposed under 50 U.S.C. App. 453 (Military Selective Service Act), if 23 those requirements apply to the student; 24 (2) is currently in default or owes a refund on a federal financial aid 25 loan under the federal guaranteed student loan program or financial aid awarded under 26 this chapter; or 27 (3) has been convicted of a felony in the state or another jurisdiction 28 and has not qualified for a waiver under standards adopted by the department. 29 Sec. 14.43.820. Eligibility for an academic scholarship. (a) Subject to 30 appropriation, the commission shall award a merit-based academic scholarship to an 31 applicant who meets the eligibility criteria for the award under the program.

01 (b) The programmatic standards for eligibility for an award of a merit-based 02 academic scholarship under the program include the following: 03 (1) the four-year core academic curriculum, which may include virtual 04 curriculum, that the student must have completed in high school; the core academic 05 curriculum must include 06 (A) four years of mathematics; 07 (B) four years of language arts; 08 (C) four years of science; and 09 (D) three years of social studies; 10 (2) the minimum grade average that the student must have achieved in 11 high school to be eligible for each of the three award levels of academic scholarship 12 under AS 14.43.827; for the first award level, a student must have an A average; for 13 the second award level, a student must have a B average; and for the third award level 14 a student must have a C plus average; the grade-point average for an A average is 3.5 15 or higher, for a B average, less than 3.5 but not less than 3.0, and for a C plus average, 16 less than 3.0 but not less than 2.5; the department shall set by regulation minimum 17 requirements based on a substantially similar standard for districts that do not assign 18 grades; 19 (3) the minimum score on a college entrance examination that the 20 student must have achieved to be eligible for each of the three award levels of 21 academic scholarship under AS 14.43.827; 22 (4) a process by which a student who meets the grade standards in (2) 23 of this subsection for a particular award level, but does not meet the minimum scores 24 established under (3) of this subsection for that level, may apply for a lower 25 scholarship award level; 26 (5) enrollment in a course of study at a qualified postsecondary 27 institution as described in AS 14.43.835 that is intended to result in the award of a 28 certificate or degree; 29 (6) a process through which a student who is no longer eligible can 30 regain eligibility; 31 (7) a process through which a home-schooled or private-schooled

01 student may submit evidence to the qualified postsecondary institution that establishes 02 the equivalent of the high school diploma, grade-point average, and core academic 03 curriculum for public school students. 04 Sec. 14.43.825. Eligibility for a career and technical school scholarship. (a) 05 Subject to appropriation, the commission shall award a merit-based career and 06 technical school scholarship to an applicant who meets the eligibility criteria for the 07 award under the program. 08 (b) The programmatic standards for eligibility for an award of a merit-based 09 career and technical school scholarship under the program include the following: 10 (1) the core academic curriculum, which may include virtual 11 curriculum, that the student must have completed in high school; the core academic 12 curriculum must include 13 (A) four years of mathematics; 14 (B) four years of language arts; 15 (C) four years of science; and 16 (D) three years of social studies; 17 (2) the minimum grade average that the student must have achieved in 18 high school; the minimum is C plus average; the C plus average requirement is a 19 grade-point average of 2.5 or higher; the department shall set by regulation minimum 20 requirements based on a substantially similar standard for districts that do not assign 21 grades; 22 (3) the minimum score that the student must have achieved on a 23 (A) college entrance examination; or 24 (B) standardized examination designed to measure a student's 25 level of preparedness to make the transition to work, as selected by the 26 department; 27 (4) enrollment in good standing at a certified career and technical 28 school that is intended to result in the award of a certificate that indicates the student's 29 preparedness to enter the workforce; 30 (5) a process through which a student who is no longer eligible can 31 regain eligibility.

01 Sec. 14.43.827. Maximum awards and allowable uses. (a) Subject to (b) - (e) 02 of this section and the programmatic standards established under AS 14.43.820(b), the 03 maximum awards and allowable uses for the merit-based programs are as follows: 04 (1) for the merit-based academic scholarship, the following three levels 05 of scholarship financing award for a semester: 06 (A) the first award level is an amount that is equal to the cost of 07 approved tuition at the University of Alaska in school year 2010 - 2011 and 08 requires an A grade average and a very high minimum score on a college 09 entrance examination; 10 (B) the second award level is an amount that is equal to 75 11 percent of the first award level and requires a B grade average and a high 12 minimum score on a college entrance examination; 13 (C) the third award level is an amount that is equal to 50 14 percent of the first award level and requires a C plus grade average and a 15 moderately high minimum score on a college entrance examination; 16 (2) for the merit-based career and technical scholarship, the award 17 must be the actual cost of the qualified career and technical school attended by the 18 student, not to exceed $3,000 a school year; 19 (3) subject to (e) of this section, a student who qualifies for a merit- 20 based academic scholarship may apply the award to the costs of attending a qualified 21 career and technical school program as described in AS 14.43.835(a)(2). 22 (b) A part-time student who receives a merit-based academic scholarship and 23 is enrolled on at least a half-time basis is eligible for an award of 50 percent of the 24 amount of scholarship award for which the student is eligible under (a) of this section. 25 (c) A student's eligibility for a scholarship terminates six years after the date 26 the student graduated from high school unless the student qualifies for an extension of 27 time allowed by the department. 28 (d) Subject to AS 14.43.815(a)(3), a student receiving a merit-based academic 29 scholarship may remain eligible for up to eight semesters of enrollment at a qualified 30 university or college, which may include graduate courses, or for up to two calendar 31 years of attendance at a qualified career or technical school. A student receiving a

01 merit-based career and technical scholarship may remain eligible for two calendar 02 years of attendance at a qualified career and technical school. A student may not 03 receive both an academic and a career and technical scholarship. 04 (e) The amount of a scholarship award may not exceed the amount of the 05 student's costs of attendance as certified by the postsecondary institution for the 06 purposes of federal financial aid, less any other scholarships or non loan financial aid 07 awarded to the student. 08 Sec. 14.43.828. Eligibility for an unmet need scholarship supplement and 09 maximum awards. (a) Subject to appropriation, the commission shall award an unmet 10 need scholarship supplement to a student who meets the eligibility criteria for the 11 award. 12 (b) A student is eligible to receive an unmet need scholarship supplement if 13 the student 14 (1) is eligible for a merit-based academic scholarship or a merit-based 15 career and technical school scholarship; and 16 (2) can demonstrate, in a year in which the student receives a 17 scholarship, that the student has unmet financial need greater than $2,000. 18 (c) The maximum amount for an unmet need scholarship supplement is 50 19 percent of the unmet financial need that exceeds $2,000. 20 (d) The qualified postsecondary institution attended by the student shall 21 determine unmet financial need by subtracting from the student's allowable standard 22 costs of attendance at the institution all non loan sources of financial support, 23 including an expected family contribution and all federal, state, and private 24 scholarships or grants received by the student. 25 (e) In this section, 26 (1) "allowable standard costs of attendance" means 27 (A) for a student who receives a merit-based academic 28 scholarship, the lesser of the 29 (i) standard costs of attendance at the University of 30 Alaska, as determined by the commission; or 31 (ii) actual costs of attendance at the qualified

01 postsecondary institution that the student attends or plans to attend, as 02 determined by the commission; 03 (B) for a student who receives a merit-based career and 04 technical school scholarship, the costs of attendance at the qualified 05 postsecondary institution that the student attends or plans to attend, as 06 determined by the commission based on room and board costs that do not 07 exceed the standard room and board costs at the University of Alaska as 08 determined by the commission; 09 (2) "expected family contribution" means the amount a student or the 10 student's family is expected to pay toward the student's cost of attendance, as 11 determined by use of the most recent federal Free Application for Federal Student Aid. 12 Sec. 14.43.830. Programmatic standards. (a) Subject to (b) of this section, 13 the department shall establish programmatic standards for the program. 14 (b) The department shall establish a make-up procedure or alternative pathway 15 to allow students who are not eligible for a scholarship to make up a deficit by 16 alternative means if the deficit was caused by circumstances beyond the student's 17 control. The department may not waive a requirement and shall require the student to 18 achieve a result comparable to that required of other students. The decision of the 19 department regarding a student's eligibility for alternative means is final. In 20 determining circumstances in which the student may pursue alternative means, the 21 department shall consider the effect on students who have met the requirements and 22 the need to promote the goals of the program. Attendance at a high school outside of 23 the state is not a circumstance in which a student may be allowed to pursue alternative 24 means to qualify for a scholarship. Circumstances in which the department may allow 25 a student to pursue alternative means to qualify for a scholarship include the 26 following: 27 (1) the required curriculum was not reasonably available to the student 28 because the student attended a small and remote high school in the state; 29 (2) the deficit was caused by rare and unusual circumstances outside 30 the control of the student. 31 Sec. 14.43.835. Qualified postsecondary institutions. (a) The following

01 institutions are qualified postsecondary institutions: 02 (1) a university or college physically located in the state that is 03 (A) authorized to operate in the state under AS 14.48.020, or is 04 exempt from authorization under AS 14.48.030(b)(1); and 05 (B) accredited by a regional accreditation association; 06 (2) a career and technical school program physically located in the 07 state that has been included on a list of certified career and technical school programs 08 received from the Department of Labor and Workforce Development; the commission 09 shall publish the list on or before September 1 of the year preceding enrollment. 10 (b) The Department of Labor and Workforce Development shall, in 11 consultation with the Department of Education and Early Development, adopt 12 regulations under AS 44.62 establishing criteria under which the Department of Labor 13 and Workforce Development shall certify career and technical school programs in the 14 state as eligible to participate in the career and technical school scholarship program. 15 The criteria to be considered under this subsection include the following: 16 (1) the quality of the job-training program offered by the career and 17 technical school; 18 (2) the employability of a graduate of the program, including whether 19 the program results in a certificate or license that is recognized by the industry for 20 which the training prepares the student; 21 (3) whether jobs in the industry for which the training prepares the 22 student are available or expected to be available in the future in the state; 23 (4) other criteria established by the Department of Labor and 24 Workforce Development in regulation. 25 (c) A postsecondary institution is physically located in the state if the campus, 26 teachers, classrooms, school administrators, and equipment used to provide the 27 education to the students are physically present in the state. Use of virtual, electronic, 28 or online materials by teachers in the state does not disqualify a postsecondary 29 institution even if the materials are generated outside the state. However, a 30 correspondence, virtual, electronic, or online program that is administered from 31 outside the state is not physically located in the state even if the program is delivered

01 by teachers or equipment in the state. 02 Sec. 14.43.840. Application and award. (a) The commission shall establish 03 application procedures for students to apply for a governor's performance scholarship. 04 (b) The commission shall adopt procedures for payment of scholarship awards 05 to the institution attended by the scholarship recipient. Payment of a scholarship is 06 subject to appropriation. If insufficient funds are appropriated to pay all eligible 07 scholarships, the commission shall pay existing awards on a pro rata basis. 08 (c) A student who is awarded a scholarship in error shall be required to refund 09 to the state the amount of the scholarship awarded in error. 10 Sec. 14.43.845. Governor's performance scholarship fund income account. 11 The governor's performance scholarship fund income account is created as an account 12 in the general fund. Money may be appropriated into the account from the expendable 13 earnings of the governor's performance scholarship fund under AS 37.14.750 - 14 37.14.790 and other sources. The commission may use money in the account to pay 15 scholarships awarded to students under AS 14.43.810 - 14.43.890. 16 Sec. 14.43.850. Report to the legislature. (a) To the extent permitted under 17 law, the department, the commission, the University of Alaska, the Department of 18 Revenue, and the Department of Labor and Workforce Development shall share data 19 necessary to prepare public reports regarding the program. 20 (b) Not more than 10 days after the convening of each regular legislative 21 session, the department, the commission, the University of Alaska, the Department of 22 Revenue, and the Department of Labor and Workforce Development shall present an 23 annual report to the public, the governor, and the legislature containing information of 24 public interest regarding the program, including 25 (1) the number of applicants and number and types of scholarships 26 awarded; 27 (2) the dollar amount of scholarships awarded in past years and the 28 dollar amounts expected to be awarded for the next year; and 29 (3) data and trends in the data regarding the goals identified in 30 AS 14.43.810. 31 Sec. 14.43.890. Definitions. In AS 14.43.810 - 14.43.890, unless the context

01 requires otherwise, 02 (1) "grade-point average" means the average of all grades on a four- 03 point scale obtained by the student in high school; 04 (2) "military service" means active duty in the armed forces of the 05 United States; 06 (3) "program" means the governor's performance scholarship program 07 established under AS 14.43.810 - 14.43.890; 08 (4) "school district" means a borough school district, a city school 09 district, a regional educational attendance area, and a state boarding school. 10 * Sec. 5. AS 14.45.130(a) is amended to read: 11 (a) A religious or other private school that elects to comply with AS 14.45.100 12 - 14.45.130 shall maintain permanent student records reflecting immunizations, 13 physical examinations, standardized testing, academic achievement, [AND] courses 14 taken at the school, and level of eligibility for a governor's performance 15 scholarship under AS 14.43.810 - 14.43.890. 16 * Sec. 6. AS 23.05.060 is amended to read: 17 Sec. 23.05.060. Powers of the department. The department may 18 (1) enforce all state labor laws; 19 (2) act as mediator and appoint deputy commissioners of conciliation 20 in labor disputes whenever it considers the interest of industrial peace requires it; 21 (3) make investigations and collect and compile statistical information 22 concerning the conditions of labor generally and upon all matters relating to the 23 enforcement of this chapter; 24 (4) institute court proceedings against an employer of labor without 25 cost to the employee when it is satisfied that the employer has failed to pay an 26 employee an amount due by contract; 27 (5) issue cease and desist orders and other orders and regulations 28 necessary for the enforcement of state labor laws; 29 (6) in accordance with AS 37.07 (the Executive Budget Act), receive 30 and spend money derived from agreements with local governments, nongovernmental 31 organizations, or other persons;

01 (7) administer duties assigned to the department under the 02 governor's performance scholarship program established in AS 14.43.810 - 03 14.43.890. 04 * Sec. 7. AS 36.30.850(b) is amended to read: 05 (b) This chapter applies to every expenditure of state money by the state, 06 acting through an agency, under a contract, except that this chapter does not apply to 07 (1) grants; 08 (2) contracts for professional witnesses to provide for professional 09 services or testimony relating to existing or probable lawsuits in which the state is or 10 may become a party; 11 (3) contracts of the University of Alaska where the work is to be 12 performed substantially by students enrolled in the university; 13 (4) contracts for medical doctors and dentists; 14 (5) acquisitions or disposals of real property or interest in real 15 property, except as provided in AS 36.30.080 and 36.30.085; 16 (6) disposals under AS 38.05; 17 (7) contracts for the preparation and transportation of ballots under 18 AS 15; 19 (8) acquisitions or disposals of property and other contracts relating to 20 airports under AS 02.15.070, 02.15.090, 02.15.091, and AS 44.88; 21 (9) disposals of obsolete property under AS 19.05.060; 22 (10) disposals of obsolete material or equipment under AS 35.20.060; 23 (11) agreements with providers of services under AS 47.25.071 - 24 47.25.095; AS 47.07; AS 47.08; AS 47.10; AS 47.12; AS 47.14; AS 47.17; AS 47.24; 25 and AS 47.27, including contractors under AS 47.27.050; 26 (12) contracts of the Department of Fish and Game for flights that 27 involve specialized flying and piloting skills and are not point-to-point; 28 (13) purchases of income-producing assets for the state treasury or a 29 public corporation of the state; 30 (14) [REPEALED 31 (15)] a contract that is a delegation, in whole or in part, of investment

01 powers held by 02 (A) the commissioner of revenue under AS 14.42.200, 03 14.42.210, AS 18.56.095, AS 37.10.070, 37.10.071, or AS 37.14; 04 (B) the Board of Regents of the University of Alaska under 05 AS 14.40.250 - 14.40.491; 06 (15) [(16)] a contract that is a delegation, in whole or in part, of 07 investment powers or fiduciary duties of 08 (A) the Board of Trustees of the Alaska Permanent Fund 09 Corporation under AS 37.13; 10 (B) the Alaska Mental Health Trust Authority under 11 AS 37.14.001 - 37.14.099; 12 (16) [(17)] the purchase of books, book binding services, newspapers, 13 periodicals, audio-visual materials, network information services access, approval 14 plans, professional memberships, archival materials, objects of art, and items for 15 museum or archival acquisition having cultural, historical, or archaeological 16 significance; in this paragraph 17 (A) "approval plans" means book selection services in which 18 current book titles meeting an agency's customized specifications are provided 19 to the agency subject to the right of the agency to return those books that do 20 not meet with the agency's approval; 21 (B) "archival materials" means the noncurrent records of an 22 agency that are preserved after appraisal because of their value; 23 (C) "audio-visual materials" means nonbook prerecorded 24 materials, including records, tapes, slides, transparencies, films, filmstrips, 25 cassettes, videos, compact discs, laser discs, and items that require the use of 26 equipment to render them usable; 27 (D) "network information services" means a group of resources 28 from which cataloging information, holdings records, inter-library loans, 29 acquisitions information, and other reference resources can be obtained; 30 (17) [(18)] contracts for the purchase of standardized examinations for 31 licensure under AS 08;

01 (18) [(19)] contracts for home health care provided under regulations 02 adopted by the Department of Health and Social Services and for adult residential care 03 services provided under regulations adopted by the Department of Health and Social 04 Services or by the Department of Administration; 05 (19) [(20)] contracts for supplies or services for research projects 06 funded by money received from the federal government or private grants; 07 (20) [(21)] guest speakers or performers for an educational or cultural 08 activity; 09 (21) [(22)] contracts of the Alaska Industrial Development and Export 10 Authority for a clean coal technology demonstration project that 11 (A) is attempting to develop a coal-fired electric generation 12 project; 13 (B) uses technology that is capable of commercialization 14 during the 1990's; and 15 (C) qualifies for federal financial participation under P.L. 99- 16 190 as amended; 17 (22) [(23)] operation and protection of assets or disposals of equipment 18 and supplies acquired through foreclosure or other legal proceedings relating to loans 19 issued under AS 03.10; 20 (23) [(24)] purchases of curatorial and conservation services to 21 maintain, preserve, and interpret 22 (A) objects of art; and 23 (B) items having cultural, historical, or archaeological 24 significance to the state; 25 (24) [(25)] acquisition of confidential seismic survey data necessary 26 for pre-sale oil and gas lease or gas only lease analyses under AS 38.05.180; 27 (25) [(26)] contracts for village public safety officers; 28 (26) [(27)] purchases of supplies and services to support the operations 29 of the Alaska state troopers or law enforcement officers engaged in fish and wildlife 30 protection if the procurement officer for the Department of Public Safety makes a 31 written determination that publicity of the purchases would jeopardize the safety of

01 personnel or the success of a covert operation; 02 (27) [(28)] expenditures when rates are set by law or ordinance; 03 (28) [(29)] construction of new vessels by the Department of 04 Transportation and Public Facilities for the Alaska marine highway system; 05 (29) [(30)] contracts entered into with a regional development 06 organization; in this paragraph, "regional development organization" has the meaning 07 given in AS 44.33.895; 08 (30) [(31)] contracts that are to be performed in an area outside of the 09 country and that require a knowledge of the customs, procedures, rules, or laws of the 10 area; 11 (31) [(32)] contracts that are between the Department of Law and 12 attorneys who are not employed by the state and that are for the review or prosecution 13 of possible violations of the criminal law of the state in situations where the attorney 14 general concludes that an actual or potential conflict of interest makes it inappropriate 15 for the Department of Law to review or prosecute the possible violations; 16 (32) [(33)] contracts between the Department of Natural Resources and 17 contractors qualified to evaluate hydrocarbon development, production, transportation, 18 and economics, to assist the commissioner of natural resources in evaluating 19 applications for royalty increases or decreases or other royalty adjustments, and 20 evaluating the related financial and technical data, entered into under AS 38.05.180(j); 21 (33) [(34)] contracts of the Alaska Industrial Development and Export 22 Authority made with the developer of an integrated transportation and port facility 23 owned by the authority; 24 (34) [(35)] procurements of contracts with the media for advertising; 25 (35) [(36) REPEALED 26 (37)] contracts between the state medical examiner and a provider of 27 medical services to perform or assist in performing the duties assigned to the state 28 medical examiner in AS 12.65.020; 29 (36) [(38)] contracts between the commissioner of revenue and an 30 independent contractor under AS 43.82.240; 31 (37) [(39)] contracts for a convener under AS 44.62.730 or for a

01 facilitator under AS 44.62.760 related to a negotiated regulation making process under 02 AS 44.62.710 - 44.62.800; 03 (38) [(40) REPEALED 04 (41)] a tourism marketing contract awarded under AS 44.33.125; 05 (39) [(42)] grants and contracts with qualified entities for services 06 under AS 47.18.330 for the foster care transition program; 07 (40) [(43)] contracts for travel services, including airplane travel, hotel 08 accommodations, and travel agency services, but excluding motor vehicle rentals; 09 (41) [(44)] contracts of the Alaska Commission on Postsecondary 10 Education or the Alaska Student Loan Corporation for the guarantee and disbursing of 11 financial aid money to institutions of postsecondary education under the financial aid 12 programs under AS 14.43.091 - 14.43.750 and AS 14.44.025; 13 (42) contracts of the Alaska Commission on Postsecondary 14 Education for the servicing and disbursing of financial aid money to institutions 15 of postsecondary education under the financial aid programs under AS 14.43.810 16 - 14.43.890; 17 (43) [(45)] contracts for an arbitration panel to determine whether a 18 project is uneconomic under AS 43.90.240, and contracts for the development of 19 application provisions for licensure and for the evaluation of those applications under 20 AS 43.90; 21 (44) [(46)] contracts for delivery of home heating assistance under 22 AS 47.25.626; 23 (45) [(47)] contracts of the Alaska Pension Obligation Bond 24 Corporation under AS 37.16.010 - 37.16.900. 25 * Sec. 8. AS 37.14 is amended by adding new sections to read: 26 Article 8A. Governor's Performance Scholarship Fund. 27 Sec. 37.14.750. Governor's performance scholarship fund established. (a) 28 The governor's performance scholarship fund is established as a fund of the state. The 29 fund consists of 30 (1) appropriations to the fund; 31 (2) donations to the fund; and

01 (3) income earned on investments of fund assets. 02 (b) The commissioner of revenue shall manage the fund with the goal that the 03 purchasing power of the fund will not diminish over time without regard to additional 04 contributions that may be made to the fund. The commissioner shall invest the assets 05 of the fund in a manner likely to yield at least a five percent real rate of return over 06 time. 07 (c) Nothing in this section creates a dedicated fund. 08 Sec. 37.14.755. Powers and duties of the commissioner of revenue. In 09 carrying out the investment duties under AS 37.14.750 - 37.14.790, the commissioner 10 of revenue has the powers and duties set out in AS 37.10.071. The commissioner shall 11 provide reports to the Department of Education and Early Development, the 12 Department of Labor and Workforce Development, and the Alaska Commission on 13 Postsecondary Education on the condition and investment performance of the fund. 14 Sec. 37.14.760. Use of fund. As soon as practicable after July 1 of each year, 15 the commissioner of revenue shall determine the average month-end market value of 16 the fund for the immediately preceding three fiscal years. The commissioner shall 17 identify five percent of that amount as available for appropriation by the legislature for 18 appropriation to the governor's performance scholarship fund income account created 19 under AS 14.43.845 from which the Alaska Commission on Postsecondary Education 20 may award scholarships under AS 14.43.810 - 14.43.890. The commissioner shall also 21 report as available for appropriation a running total of amounts previously identified 22 as available for appropriation to the governor's performance scholarship fund income 23 account but not appropriated. 24 Sec. 37.14.790. Definitions. In AS 37.14.750 - 37.14.790, unless the context 25 requires otherwise, 26 (1) "commissioner" means the commissioner of revenue; 27 (2) "fund" means the governor's performance scholarship fund 28 established in AS 37.14.750(a). 29 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 TRANSITION: PROGRAM STANDARDS AND IMPLEMENTATION FOR

01 INITIAL SCHOOL YEARS. Notwithstanding any contrary provision of this Act, the 02 Department of Education and Early Development and the Department of Labor and 03 Workforce Development, after consultation with the Alaska Commission on Postsecondary 04 Education, may adopt regulations under AS 44.62 to implement their respective duties under 05 the governor's performance scholarship program established in AS 14.43.810, enacted by sec. 06 4 of this Act, so that a student 07 (1) may be eligible for the program if the student, for the school years between 08 July 1, 2010, and June 30, 2013, has completed the core curriculum requirements in language 09 arts and social studies for the scholarship, and three or more years each of mathematics and 10 science; and 11 (2) who graduated from high school in this state after June 30, 2010, and 12 before July 1, 2011, and meets eligibility requirements for the program may apply for a 13 scholarship beginning July 1, 2011. 14 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 TRANSITION: REGULATIONS. The Department of Education and Early 17 Development, the Department of Labor and Workforce Development, and the Alaska 18 Commission on Postsecondary Education may proceed to adopt regulations necessary to 19 implement changes made to their respective authorities by this Act. The regulations take 20 effect under AS 44.62 (Administrative Procedure Act), but not before September 1, 2010. 21 * Sec. 11. Section 10 of this Act takes effect immediately under AS 01.10.070(c). 22 * Sec. 12. Except as provided in sec. 11 of this Act, this Act takes effect September 1, 2010.