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CSSB 139(EDC): "An Act increasing the base student allocation used in the formula for state funding of public education; repealing the secondary student competency examination and related requirements; relating to high school course credit earned through assessment; relating to charter schools; relating to charter school student transportation; relating to residential school applications; increasing the stipend for boarding school students; relating to unemployment contributions for the Alaska technical and vocational education program; relating to earning high school credit for completion of vocational education courses offered by institutions receiving technical and vocational education program funding; relating to education tax credits; making conforming amendments; and providing for an effective date."

00 CS FOR SENATE BILL NO. 139(EDC) 01 "An Act increasing the base student allocation used in the formula for state funding of 02 public education; repealing the secondary student competency examination and related 03 requirements; relating to high school course credit earned through assessment; relating 04 to charter schools; relating to charter school student transportation; relating to 05 residential school applications; increasing the stipend for boarding school students; 06 relating to unemployment contributions for the Alaska technical and vocational 07 education program; relating to earning high school credit for completion of vocational 08 education courses offered by institutions receiving technical and vocational education 09 program funding; relating to education tax credits; making conforming amendments; 10 and providing for an effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. AS 14.03 is amended by adding a new section to read:

01 Sec. 14.03.073. Course credit earned through mastery of course content. 02 (a) A school district shall provide a high school student with the opportunity to earn 03 credit for a course offered in the school in mathematics, language arts, science, social 04 studies, and world languages, if the student proves mastery of the course content 05 through a district-approved assessment. Course credit earned under this subsection 06 shall meet district and statewide requirements for graduation and the course credit 07 requirements of the Alaska performance scholarship program under AS 14.43.810 - 08 14.43.849. 09 (b) The board shall adopt regulations implementing this section. 10 * Sec. 2. AS 14.03.078 is amended to read: 11 Sec. 14.03.078. Report. The department shall provide to the legislature by 12 February 15 of each year an annual report regarding the progress of each school and 13 school district toward high academic performance by all students. The report required 14 under this section must include 15 (1) information described under AS 14.03.120(d); 16 (2) [THE NUMBER AND PERCENTAGE OF STUDENTS IN 17 EACH SCHOOL WHO PASS THE EXAMINATION REQUIRED UNDER 18 AS 14.03.075, AND THE NUMBER WHO PASS EACH SECTION OF THE 19 EXAMINATION; 20 (3)] progress of the department 21 (A) toward implementing the school accountability provisions 22 of AS 14.03.123; and 23 (B) in assisting high schools to become accredited; 24 (3) [(4)] a description of the resources provided to each school and 25 school district for coordinated school improvement activities and staff training in each 26 school and school district; 27 (4) [(5)] each school district's and each school's progress in aligning 28 curriculum with state education performance standards; 29 (5) [(6)] a description of the efforts by the department to assist a public 30 school or district that receives a low performance designation under AS 14.03.123 31 [OF DEFICIENT OR IN CRISIS];

01 (6) [(7)] a description of intervention efforts by each school district 02 and school for students who are not meeting state performance standards; and 03 (7) [(8)] the number and percentage of turnover in certificated 04 personnel and superintendents [; 05 (9) THE NUMBER OF TEACHERS BY DISTRICT AND BY 06 SCHOOL WHO ARE TEACHING OUTSIDE THE TEACHER'S AREA OF 07 ENDORSEMENT BUT IN AREAS TESTED BY THE HIGH SCHOOL 08 COMPETENCY EXAMINATION]. 09 * Sec. 3. AS 14.03.120(d) is amended to read: 10 (d) Annually, before the date set by the district under (e) of this section, each 11 public school shall deliver to the department for posting on the department's Internet 12 website and provide, in a public meeting of parents, students, and community 13 members, a report on the school's performance and the performance of the school's 14 students. The report shall be prepared on a form prescribed by the department and 15 must include 16 (1) information on accreditation; 17 (2) results of norm-referenced achievement tests; 18 (3) results of state standards-based assessments in language arts 19 [READING, WRITING,] and mathematics; 20 (4) a description, including quantitative and qualitative measures, of 21 student, parent, community, and business involvement in student learning; 22 (5) a description of the school's attendance, retention, dropout, and 23 graduation rates [, INCLUDING THE NUMBER AND PERCENTAGE OF 24 STUDENTS WHO RECEIVED A DIPLOMA UNDER A WAIVER FROM THE 25 COMPETENCY EXAMINATION REQUIRED UNDER AS 14.03.075(a),] as 26 specified by the state board; 27 (6) the annual percent of enrollment change, regardless of reason, and 28 the annual percent of enrollment change due to student transfers into and out of the 29 school district; 30 (7) if Native language education is provided, a summary and 31 evaluation of the curriculum described in AS 14.30.420;

01 (8) [THE NUMBER AND PERCENTAGE OF STUDENTS IN 02 EACH SCHOOL WHO TAKE AND WHO SUCCESSFULLY COMPLETE AN 03 ALTERNATIVE ASSESSMENT PROGRAM IN READING, ENGLISH, OR 04 MATHEMATICS; AND THE NUMBER AND PERCENTAGE OF PUPILS IN 05 EACH SCHOOL WHO SUCCESSFULLY COMPLETE THE ALTERNATIVE 06 ASSESSMENT PROGRAM BUT WHO DO NOT REACH THE STATE 07 PERFORMANCE STANDARDS AT THE COMPETENCY EXAM LEVEL IN 08 READING, ENGLISH, OR MATHEMATICS; A SCHOOL MAY NOT REPORT 09 RESULTS UNDER THIS PARAGRAPH UNLESS THE SCHOOL COMPLIES 10 WITH THE FAMILY EDUCATIONAL RIGHTS AND PRIVACY 11 REQUIREMENTS OF 34 C.F.R. 99; 12 (9)] the performance designation assigned the school under 13 AS 14.03.123 and the methodology used to assign the performance designation, 14 including the measures used and their relative weights; and 15 (9) [(10)] other information concerning school performance and the 16 performance of the school's students as required by the state board in regulation. 17 * Sec. 4. AS 14.03.123(f) is amended to read: 18 (f) In the accountability system for schools and districts required by this 19 section, the department shall 20 (1) implement 20 U.S.C. 6301 - 7941 (Elementary and Secondary 21 Education Act of 1965), as amended; 22 (2) implement state criteria and priorities for accountability including 23 the use of 24 (A) measures of student performance on standards-based 25 assessments in language arts [READING, WRITING,] and mathematics [, 26 AND INCLUDING COMPETENCY TESTS REQUIRED UNDER 27 AS 14.03.075]; 28 (B) measures of student improvement; and 29 (C) other measures identified that are indicators of student 30 success and achievement; and 31 (3) to the extent practicable, minimize the administrative burden on

01 districts. 02 * Sec. 5. AS 14.03.250 is repealed and reenacted to read: 03 Sec. 14.03.250. Application for charter school. (a) A local school board shall 04 prescribe an application procedure for the establishment of a charter school in that 05 school district. The application procedure must include provisions for an academic 06 policy committee consisting of parents of students attending the school, teachers, and 07 school employees and a proposed form for a contract between a charter school and the 08 local school board, setting out the contract elements required under AS 14.03.255(c). 09 (b) The decision of a local school board approving or denying the application 10 for a charter school must be in writing and must include all relevant findings of fact 11 and conclusions of law. 12 (c) If a local school board approves an application for a charter school, the 13 local school board shall forward the application to the state Board of Education and 14 Early Development for review and approval. 15 (d) If a local school board denies an application for a charter school, the 16 applicant may appeal the denial to the commissioner. The appeal to the commissioner 17 shall be filed not later than 60 days after the local school board issues its written 18 decision of denial. The commissioner shall review the local school board's decision to 19 consider whether the findings of fact are supported by substantial evidence and 20 whether the decision is contrary to law. 21 (e) The commissioner shall forward the application and the written 22 recommendations of the commissioner to the state Board of Education and Early 23 Development for review and approval. The application shall be forwarded not later 24 than 30 days after the commissioner issues written recommendations. The state Board 25 of Education and Early Development shall exercise independent judgment in 26 evaluating the application. 27 * Sec. 6. AS 14.03 is amended by adding a new section to read: 28 Sec. 14.03.253. Charter school application appeal. In an appeal to the 29 commissioner under AS 14.03.250, the commissioner shall review the record before 30 the local school board. The commissioner may request written supplementation of the 31 record from the applicant or the local school board. After receiving the commissioner's

01 recommendations, the state Board of Education and Early Development may 02 (1) remand the appeal to the local school board for further review; 03 (2) approve the charter school application; or 04 (3) uphold the decision denying the charter school application. 05 * Sec. 7. AS 14.03.255(a) is amended to read: 06 (a) A charter school operates as a school in the local school district except that 07 the charter school (1) is exempt from the local school district's textbook, program, 08 curriculum, and scheduling requirements; (2) is exempt from AS 14.14.130(c); the 09 principal of the charter school shall be selected by the academic policy committee and 10 shall select, appoint, or otherwise supervise employees of the charter school; and (3) 11 operates under the charter school's annual program budget as set out in the contract 12 between the local school board and the charter school under (c) of this section. A local 13 school board may exempt a charter school from other local school district 14 requirements if the exemption is set out in the contract. A charter school is subject to 15 [SECONDARY SCHOOL COMPETENCY TESTING AS PROVIDED IN 16 AS 14.03.075 AND OTHER COMPETENCY] tests required by the department. 17 * Sec. 8. AS 14.03.260(a) is amended to read: 18 (a) A local school board shall provide an approved charter school with an 19 annual program budget. The budget shall be not less than the amount generated by the 20 students enrolled in the charter school less administrative costs retained by the local 21 school district, determined by applying the indirect cost rate approved by the 22 Department of Education and Early Development. The "amount generated by students 23 enrolled in the charter school" is to be determined in the same manner as it would be 24 for a student enrolled in another public school in that school district and includes 25 funds generated by special needs under AS 14.17.420(a)(1) and secondary school 26 vocational and technical instruction under AS 14.17.420(a)(3). A school district 27 shall direct state aid under AS 14.11 for the construction or major maintenance 28 of a charter school facility to the charter school that generated the state aid, 29 subject to the same terms and conditions that apply to state aid under AS 14.11 30 for construction or major maintenance of a school facility that is not a charter 31 school.

01 * Sec. 9. AS 14.07.020(a)(16) is amended to read: 02 (16) establish by regulation criteria, based on low student performance, 03 under which the department may intervene in a school district to improve instructional 04 practices, as described in AS 14.07.030(14) or (15); the regulations must include 05 (A) a notice provision that alerts the district to the deficiencies 06 and the instructional practice changes proposed by the department; 07 (B) an end date for departmental intervention, as described in 08 AS 14.07.030(14)(A) and (B) and (15), after the district demonstrates three 09 consecutive years of improvement consisting of not less than two percent 10 increases in student proficiency on standards-based assessments in 11 mathematics and language arts [, READING, AND WRITING] as provided 12 in AS 14.03.123(f)(2)(A); and 13 (C) a process for districts to petition the department for 14 continuing or discontinuing the department's intervention; 15 * Sec. 10. AS 14.07.020(b) is amended to read: 16 (b) In implementing its duties under (a)(2) of this section, the department shall 17 develop 18 (1) performance standards in language arts [READING, WRITING,] 19 and mathematics to be met at designated age levels by each student in public schools 20 in the state; and 21 (2) a comprehensive system of student assessments, composed of 22 multiple indicators of proficiency in language arts [READING, WRITING,] and 23 mathematics; this comprehensive system must 24 (A) be made available to all districts and regional educational 25 attendance areas; 26 (B) include a developmental profile for students entering 27 kindergarten or first grade; and 28 (C) include performance standards in language arts 29 [READING, WRITING,] and mathematics for students in age groups five 30 through seven, eight through 10, and 11 - 14. 31 * Sec. 11. AS 14.09.010 is amended by adding new subsections to read:

01 (e) A school district that provides transportation services under this section 02 shall provide transportation services to students attending a charter school operated by 03 the district under a policy adopted by the district. The policy must 04 (1) be developed with input solicited from individuals involved with 05 the charter school, including staff, students, and parents; 06 (2) at a minimum, provide transportation services for students enrolled 07 in the charter school on a space available basis along the regular routes that the 08 students attending schools in an attendance area in the district are transported; and 09 (3) be approved by the department. 10 (f) If a school district fails to adopt a policy under (e) of this section, the 11 school district shall allocate the amount received for each student under (a) of this 12 section to each charter school operated by the district based on the number of students 13 enrolled in the charter school. 14 (g) Nothing in (e) of this section requires a school district to establish 15 dedicated transportation routes for the exclusive use of students enrolled in a charter 16 school or authorizes a charter school to opt out of a policy adopted by a school district 17 for the purpose of acquiring transportation funding. 18 * Sec. 12. AS 14.16 is amended by adding a new section to article 2 to read: 19 Sec. 14.16.100. Application for residential school. A school district shall 20 apply to the department for approval to establish and operate a statewide or district- 21 wide residential school. The department shall accept applications during an open 22 application period conducted annually. A period of open application in itself does not 23 indicate that the department will approve the establishment of a new residential 24 school. 25 * Sec. 13. AS 14.16.200(b) is amended to read: 26 (b) Costs that may be claimed by a district for reimbursement under (a) of this 27 section are 28 (1) one round trip on the least expensive means of transportation 29 between the student's community of residence and the school during the school year if 30 the district expends money for the trip; and 31 (2) a per-pupil monthly stipend to cover room and board expenses as

01 determined by the department on a regional basis and not to exceed the following 02 amounts: 03 (A) for the Southeast Region (Region I), $1,230 [$820]; 04 (B) for the Southcentral Region (Region II), $1,200 [$800]; 05 (C) for the Interior Region (Region III), $1,452 [$968]; 06 (D) for the Southwest Region (Region IV), $1,509 [$1,006]; 07 (E) for the Northern Remote Region (Region V), $1,776 08 [$1,184]. 09 * Sec. 14. AS 14.17.450(d) is amended to read: 10 (d) If a charter school has a student count of more than 74 [120] but less than 11 150 for the current year and is in the first three years [YEAR] of operation or had a 12 student count of at least 75 [150 OR MORE] in the previous year of operation, 13 (1) the adjusted student count for the school shall be calculated by 14 multiplying the student count by [95 PERCENT OF] the student rate for a school that 15 has a student count of 150; and 16 (2) not later than February 15, the charter school shall submit for 17 approval of the governing board of the district a plan for the following school year that 18 includes a statement about whether the school will continue to operate if the student 19 count remains the same that year and, if so, a projection of the funding anticipated 20 from the state and other sources, a proposed budget, and a description of anticipated 21 changes to the school staff, program, and curriculum; if the school intends to close if 22 the student count remains the same the following year, the plan must describe transfer 23 plans for students, staff, facilities, and materials. 24 * Sec. 15. AS 14.17.470 is amended to read: 25 Sec. 14.17.470. Base student allocation. The base student allocation is $5,765 26 [$5,680]. 27 * Sec. 16. AS 14.17.470, as amended by sec. 15 of this Act, is amended to read: 28 Sec. 14.17.470. Base student allocation. The base student allocation is $5,823 29 [$5,765]. 30 * Sec. 17. AS 14.17.470, as amended by secs. 15 and 16 of this Act, is amended to read: 31 Sec. 14.17.470. Base student allocation. The base student allocation is $5,881

01 [$5,823]. 02 * Sec. 18. AS 23.15.835(a) is amended to read: 03 (a) In the manner provided in AS 23.20 and for the benefit of the program, the 04 department shall collect from each employee an amount equal to .16 [.15] percent of 05 the wages, as set out in AS 23.20.175, on which the employee is required to make 06 contributions under AS 23.20.290(d). The department shall remit to the Department of 07 Revenue, in accordance with AS 37.10.050, money collected under this subsection. 08 * Sec. 19. AS 23.15.835(d) is amended to read: 09 (d) Notwithstanding AS 23.15.840(a), for the fiscal years ending June 30, 10 2015 [2009], through June 30, 2017 [2014], the money collected under this section or 11 otherwise appropriated to the Alaska Workforce Investment Board, formerly known as 12 the Alaska Human Resource Investment Council, shall be allocated directly in the 13 following percentages to the following institutions for programs consistent with 14 AS 23.15.820 - 23.15.850 and capital improvements: 15 University of Alaska 46 [45] percent 16 [UNIVERSITY OF ALASKA SOUTHEAST 5 PERCENT] 17 Galena Interior Learning Academy [PROJECT 4 percent 18 EDUCATION VOCATIONAL TRAINING CENTER] 19 Alaska [KOTZEBUE] Technical Center 9 percent 20 Alaska Vocational Technical Center 17 percent 21 Northwestern Alaska Career and Technical Center 3 percent 22 Southwest Alaska Vocational and Education Center 3 percent 23 Yuut Elitnaurviat, Inc. People's Learning Center 9 percent 24 Partners for Progress in Delta, Inc. [DELTA CAREER 3 percent 25 ADVANCEMENT CENTER] 26 Amundsen Educational Center [NEW FRONTIER 2 percent 27 VOCATIONAL TECHNICAL CENTER] 28 Southern Southeast Alaska Technical Education Center 2 percent 29 Southeast Career Consortium 2 percent 30 * Sec. 20. AS 23.15.835(e) is amended to read: 31 (e) The institutions receiving funding under (d) of this section shall provide an

01 expenditure and performance report to the department by November 1 of each year 02 that includes [THE] 03 (1) the percentage of former participants in the program who have jobs 04 one year after leaving the program; 05 (2) the median wage of former participants seven to 12 months after 06 leaving the program; 07 (3) the percentage of former participants who were employed after 08 leaving the program who received training under the program that was related or 09 somewhat related to the former participants' jobs seven to 12 months after leaving the 10 program; 11 (4) the percentage of former participants who indicate some level of 12 satisfaction with the training received under the program; [AND] 13 (5) the percentage of employers who indicate satisfaction with the 14 services provided through the program; 15 (6) a description of each vocational education course funded 16 through the allocation set out in (d) of this section that permits high school 17 students to earn dual credit upon course completion, and the number of high 18 school students who earned dual credit in the past year; 19 (7) a copy of any articulation agreement established under (g) of 20 this section that either was in effect for the preceding year or is in process for the 21 next year of funding, and the number of high school students who earned dual 22 credit under each articulation agreement; and 23 (8) other performance and financial information, as determined by 24 the department, to verify the performance of the program. 25 * Sec. 21. AS 23.15.835 is amended by adding new subsections to read: 26 (g) The institutions receiving funding under (d) of this section shall establish 27 and maintain at least one articulation agreement under which dual credit may be 28 earned by high school students upon completion of a vocational education course. 29 (h) An institution's failure to comply with (e) or (g) of this section shall result 30 in a withholding penalty of 20 percent of the funding allocated under (d) of this 31 section in the following year.

01 * Sec. 22. AS 23.15.850 is amended by adding new paragraphs to read: 02 (3) "articulation agreement" means a dual-credit partnership between a 03 school district and an institution receiving funding under AS 23.15.835(d) that 04 describes vocational education courses, student eligibility, course location, academic 05 policies, student support services, credit on a student's transcript, funding, and other 06 items required by the partnering institutions; 07 (4) "dual credit" means simultaneous high school credit and credit 08 toward a career or vocational certification. 09 * Sec. 23. AS 43.20.014(a) is amended to read: 10 (a) A taxpayer is allowed a credit against the tax due under this chapter for 11 cash contributions accepted for 12 (1) direct instruction, research, and educational support purposes, 13 including library and museum acquisitions and operations, and contributions to 14 endowment, by an Alaska university foundation or by a nonprofit, public or private, 15 Alaska two-year or four-year college accredited by a regional accreditation 16 association; 17 (2) secondary school level vocational education courses, programs, and 18 facilities by a school district in the state; 19 (3) vocational education courses, programs, and facilities by a state- 20 operated vocational technical education and training school or a nonprofit tribal 21 organization; 22 (4) a facility [OR AN ANNUAL INTERCOLLEGIATE SPORTS 23 TOURNAMENT] by a nonprofit, public or private, Alaska two-year or four-year 24 college accredited by a regional accreditation association; 25 (5) Alaska Native cultural or heritage programs and educational 26 support, including mentoring and tutoring, provided by a nonprofit agency for public 27 school staff and for students who are in grades kindergarten through 12 in the state; 28 (6) education, research, rehabilitation, and facilities by an institution 29 that is located in the state and that qualifies as a coastal ecosystem learning center 30 under the Coastal America Partnership established by the federal government; [AND] 31 (7) the Alaska higher education investment fund under AS 37.14.750;

01 (8) funding a scholarship awarded by a nonprofit organization to a 02 dual-credit student to defray the cost of a dual-credit course, including the cost of 03 (A) tuition and textbooks; 04 (B) registration, course, and programmatic student fees; 05 (C) on-campus room and board at the postsecondary 06 institution in the state that provides the dual-credit course; 07 (D) transportation costs to and from a residential school 08 approved by the Department of Education and Early Development under 09 AS 14.16.200 or the postsecondary school in the state that provides the 10 dual-credit course; and 11 (E) other related educational and programmatic costs; 12 (9) constructing, operating, or maintaining a residential housing 13 facility by a residential school approved by the Department of Education and 14 Early Development under AS 14.16.200; 15 (10) childhood early learning and development programs and 16 educational support to childhood early learning and development programs 17 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 18 a school district in the state, by the Department of Education and Early 19 Development, or through a state grant; and 20 (11) the operations of a nonprofit organization dedicated to 21 providing educational opportunities that promote the legacy of public service 22 contributions to the state and perpetuate ongoing educational programs that 23 foster public service leadership for future generations of residents of the state. 24 * Sec. 24. AS 43.20.014(a), as amended by sec. 14, ch. 92, SLA 2010, sec. 14, ch. 7, 25 FSSLA 2011, and sec. 15, ch. 74, SLA 2012, is amended to read: 26 (a) A taxpayer is allowed a credit against the tax due under this chapter for 27 cash contributions accepted 28 (1) for direct instruction, research, and educational support purposes, 29 including library and museum acquisitions and operations, and contributions to 30 endowment, by an Alaska university foundation or by a nonprofit, public or private, 31 Alaska two-year or four-year college accredited by a regional accreditation

01 association; 02 (2) for secondary school level vocational education courses and 03 programs by a school district in the state; 04 (3) by a state-operated vocational technical education and training 05 school; [AND] 06 (4) for the Alaska higher education investment fund under 07 AS 37.14.750; 08 (5) for funding a scholarship awarded by a nonprofit organization 09 to a dual-credit student to defray the cost of a dual-credit course, including the 10 cost of 11 (A) tuition and textbooks; 12 (B) registration, course, and programmatic student fees; 13 (C) on-campus room and board at the postsecondary 14 institution in the state that provides the dual-credit course; 15 (D) transportation costs to and from a residential school 16 approved by the Department of Education and Early Development under 17 AS 14.16.200 or the postsecondary school in the state that provides the 18 dual-credit course; and 19 (E) other related educational and programmatic costs; 20 (6) for constructing, operating, or maintaining a residential 21 housing facility by a residential school approved by the Department of Education 22 and Early Development under AS 14.16.200; 23 (7) for childhood early learning and development programs and 24 educational support to childhood early learning and development programs 25 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 26 a school district in the state, by the Department of Education and Early 27 Development, or through a state grant; and 28 (8) for the operations of a nonprofit organization dedicated to 29 providing educational opportunities that promote the legacy of public service 30 contributions to the state and perpetuate ongoing educational programs that 31 foster public service leadership for future generations of residents of the state.

01 * Sec. 25. AS 43.20.014(f) is amended by adding new paragraphs to read: 02 (3) "dual-credit student" means a secondary level student in the state 03 who simultaneously earns college and high school credit for a course; 04 (4) "nonprofit organization" means a charitable or educational 05 organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) 06 (Internal Revenue Code). 07 * Sec. 26. AS 43.65.018(a) is amended to read: 08 (a) A person engaged in the business of mining in the state is allowed a credit 09 against the tax due under this chapter for cash contributions accepted for 10 (1) direct instruction, research, and educational support purposes, 11 including library and museum acquisitions and operations, and contributions to 12 endowment, by an Alaska university foundation or by a nonprofit, public or private, 13 Alaska two-year or four-year college accredited by a regional accreditation 14 association; 15 (2) secondary school level vocational education courses, programs, and 16 facilities by a school district in the state; 17 (3) vocational education courses, programs, and facilities by a state- 18 operated vocational technical education and training school or a nonprofit tribal 19 organization; 20 (4) a facility [OR AN ANNUAL INTERCOLLEGIATE SPORTS 21 TOURNAMENT] by a nonprofit, public or private, Alaska two-year or four-year 22 college accredited by a regional accreditation association; 23 (5) Alaska Native cultural or heritage programs and educational 24 support, including mentoring and tutoring, provided by a nonprofit agency for public 25 school staff and for students who are in grades kindergarten through 12 in the state; 26 (6) education, research, rehabilitation, and facilities by an institution 27 that is located in the state and that qualifies as a coastal ecosystem learning center 28 under the Coastal America Partnership established by the federal government; [AND] 29 (7) the Alaska higher education investment fund under AS 37.14.750; 30 (8) funding a scholarship awarded by a nonprofit organization to a 31 dual-credit student to defray the cost of a dual-credit course, including the cost of

01 (A) tuition and textbooks; 02 (B) registration, course, and programmatic student fees; 03 (C) on-campus room and board at the postsecondary 04 institution in the state that provides the dual-credit course; 05 (D) transportation costs to and from a residential school 06 approved by the Department of Education and Early Development under 07 AS 14.16.200 or the postsecondary school in the state that provides the 08 dual-credit course; and 09 (E) other related educational and programmatic costs; 10 (9) constructing, operating, or maintaining a residential housing 11 facility by a residential school approved by the Department of Education and 12 Early Development under AS 14.16.200; 13 (10) childhood early learning and development programs and 14 educational support to childhood early learning and development programs 15 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 16 a school district in the state, by the Department of Education and Early 17 Development, or through a state grant; and 18 (11) the operations of a nonprofit organization dedicated to 19 providing educational opportunities that promote the legacy of public service 20 contributions to the state and perpetuate ongoing educational programs that 21 foster public service leadership for future generations of residents of the state. 22 * Sec. 27. AS 43.65.018(a), as amended by sec. 35, ch. 92, SLA 2010, sec. 14, ch. 7, 23 FSSLA 2011, and sec. 21, ch. 74, SLA 2012, is amended to read: 24 (a) A person engaged in the business of mining in the state is allowed a credit 25 against the tax due under this chapter for cash contributions accepted 26 (1) for direct instruction, research, and educational support purposes, 27 including library and museum acquisitions and operations, and contributions to 28 endowment, by an Alaska university foundation or by a nonprofit, public or private, 29 Alaska two-year or four-year college accredited by a regional accreditation 30 association; 31 (2) for secondary school level vocational education courses and

01 programs by a school district in the state; 02 (3) by a state-operated vocational technical education and training 03 school; [AND] 04 (4) for the Alaska higher education investment fund under 05 AS 37.14.750; 06 (5) for funding a scholarship awarded by a nonprofit organization 07 to a dual-credit student to defray the cost of a dual-credit course, including the 08 cost of 09 (A) tuition and textbooks; 10 (B) registration, course, and programmatic student fees; 11 (C) on-campus room and board at the postsecondary 12 institution in the state that provides the dual-credit course; 13 (D) transportation costs to and from a residential school 14 approved by the Department of Education and Early Development under 15 AS 14.16.200 or the postsecondary school in the state that provides the 16 dual-credit course; and 17 (E) other related educational and programmatic costs; 18 (6) for constructing, operating, or maintaining a residential 19 housing facility by a residential school approved by the Department of Education 20 and Early Development under AS 14.16.200; 21 (7) for childhood early learning and development programs and 22 educational support to childhood early learning and development programs 23 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 24 a school district in the state, by the Department of Education and Early 25 Development, or through a state grant; and 26 (8) for the operations of a nonprofit organization dedicated to 27 providing educational opportunities that promote the legacy of public service 28 contributions to the state and perpetuate ongoing educational programs that 29 foster public service leadership for future generations of residents of the state. 30 * Sec. 28. AS 43.65.018(f) is amended by adding new paragraphs to read: 31 (3) "dual-credit student" means a secondary level student in the state

01 who simultaneously earns college and high school credit for a course; 02 (4) "nonprofit organization" means a charitable or educational 03 organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) 04 (Internal Revenue Code). 05 * Sec. 29. AS 43.75.018(a) is amended to read: 06 (a) A person engaged in a fisheries business is allowed a credit against the tax 07 due under this chapter for cash contributions accepted for 08 (1) direct instruction, research, and educational support purposes, 09 including library and museum acquisitions and operations, and contributions to 10 endowment, by an Alaska university foundation or by a nonprofit, public or private, 11 Alaska two-year or four-year college accredited by a regional accreditation 12 association; 13 (2) secondary school level vocational education courses, programs, and 14 facilities by a school district in the state; 15 (3) vocational education courses, programs, and facilities by a state- 16 operated vocational technical education and training school or a nonprofit tribal 17 organization; 18 (4) a facility [OR AN ANNUAL INTERCOLLEGIATE SPORTS 19 TOURNAMENT] by a nonprofit, public or private, Alaska two-year or four-year 20 college accredited by a regional accreditation association; 21 (5) Alaska Native cultural or heritage programs and educational 22 support, including mentoring and tutoring, provided by a nonprofit agency for public 23 school staff and for students who are in grades kindergarten through 12 in the state; 24 (6) education, research, rehabilitation, and facilities by an institution 25 that is located in the state and that qualifies as a coastal ecosystem learning center 26 under the Coastal America Partnership established by the federal government; [AND] 27 (7) the Alaska higher education investment fund under AS 37.14.750; 28 (8) funding a scholarship awarded by a nonprofit organization to a 29 dual-credit student to defray the cost of a dual-credit course, including the cost of 30 (A) tuition and textbooks; 31 (B) registration, course, and programmatic student fees;

01 (C) on-campus room and board at the postsecondary 02 institution in the state that provides the dual-credit course; 03 (D) transportation costs to and from a residential school 04 approved by the Department of Education and Early Development under 05 AS 14.16.200 or the postsecondary school in the state that provides the 06 dual-credit course; and 07 (E) other related educational and programmatic costs; 08 (9) constructing, operating, or maintaining a residential housing 09 facility by a residential school approved by the Department of Education and 10 Early Development under AS 14.16.200; 11 (10) childhood early learning and development programs and 12 educational support to childhood early learning and development programs 13 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 14 a school district in the state, by the Department of Education and Early 15 Development, or through a state grant; and 16 (11) the operations of a nonprofit organization dedicated to 17 providing educational opportunities that promote the legacy of public service 18 contributions to the state and perpetuate ongoing educational programs that 19 foster public service leadership for future generations of residents of the state. 20 * Sec. 30. AS 43.75.018(a), as amended by sec. 42, ch. 92, SLA 2010, sec. 14, ch. 7, 21 FSSLA 2011, and sec. 23, ch. 74, SLA 2012, is amended to read: 22 (a) A person engaged in a fisheries business is allowed a credit against the tax 23 due under this chapter for cash contributions accepted 24 (1) for direct instruction, research, and educational support purposes, 25 including library and museum acquisitions and operations, and contributions to 26 endowment, by an Alaska university foundation or by a nonprofit, public or private, 27 Alaska two-year or four-year college accredited by a regional accreditation 28 association; 29 (2) for secondary school level vocational education courses and 30 programs by a school district in the state; 31 (3) by a state-operated vocational technical education and training

01 school; [AND] 02 (4) for the Alaska higher education investment fund under 03 AS 37.14.750; 04 (5) for funding a scholarship awarded by a nonprofit organization 05 to a dual-credit student to defray the cost of a dual-credit course, including the 06 cost of 07 (A) tuition and textbooks; 08 (B) registration, course, and programmatic student fees; 09 (C) on-campus room and board at the postsecondary 10 institution in the state that provides the dual-credit course; 11 (D) transportation costs to and from a residential school 12 approved by the Department of Education and Early Development under 13 AS 14.16.200 or the postsecondary school in the state that provides the 14 dual-credit course; and 15 (E) other related educational and programmatic costs; 16 (6) for constructing, operating, or maintaining a residential 17 housing facility by a residential school approved by the Department of Education 18 and Early Development under AS 14.16.200; 19 (7) for childhood early learning and development programs and 20 educational support to childhood early learning and development programs 21 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 22 a school district in the state, by the Department of Education and Early 23 Development, or through a state grant; and 24 (8) for the operations of a nonprofit organization dedicated to 25 providing educational opportunities that promote the legacy of public service 26 contributions to the state and perpetuate ongoing educational programs that 27 foster public service leadership for future generations of residents of the state. 28 * Sec. 31. AS 43.75.018(f) is amended by adding new paragraphs to read: 29 (3) "dual-credit student" means a secondary level student in the state 30 who simultaneously earns college and high school credit for a course; 31 (4) "nonprofit organization" means a charitable or educational

01 organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) 02 (Internal Revenue Code). 03 * Sec. 32. AS 43.77.045(a) is amended to read: 04 (a) In addition to the credit allowed under AS 43.77.040, a person engaged in 05 a floating fisheries business is allowed a credit against the tax due under this chapter 06 for cash contributions accepted for 07 (1) direct instruction, research, and educational support purposes, 08 including library and museum acquisitions and operations, and contributions to 09 endowment, by an Alaska university foundation or by a nonprofit, public or private, 10 Alaska two-year or four-year college accredited by a regional accreditation 11 association; 12 (2) secondary school level vocational education courses, programs, and 13 facilities by a school district in the state; 14 (3) vocational education courses, programs, and facilities by a state- 15 operated vocational technical education and training school or a nonprofit tribal 16 organization; 17 (4) a facility [OR AN ANNUAL INTERCOLLEGIATE SPORTS 18 TOURNAMENT] by a nonprofit, public or private, Alaska two-year or four-year 19 college accredited by a regional accreditation association; 20 (5) Alaska Native cultural or heritage programs and educational 21 support, including mentoring and tutoring, provided by a nonprofit agency for public 22 school staff and for students who are in grades kindergarten through 12 in the state; 23 (6) education, research, rehabilitation, and facilities by an institution 24 that is located in the state and that qualifies as a coastal ecosystem learning center 25 under the Coastal America Partnership established by the federal government; [AND] 26 (7) the Alaska higher education investment fund under AS 37.14.750; 27 (8) funding a scholarship awarded by a nonprofit organization to a 28 dual-credit student to defray the cost of a dual-credit course, including the cost of 29 (A) tuition and textbooks; 30 (B) registration, course, and programmatic student fees; 31 (C) on-campus room and board at the postsecondary

01 institution in the state that provides the dual-credit course; 02 (D) transportation costs to and from a residential school 03 approved by the Department of Education and Early Development under 04 AS 14.16.200 or the postsecondary school in the state that provides the 05 dual-credit course; and 06 (E) other related educational and programmatic costs; 07 (9) constructing, operating, or maintaining a residential housing 08 facility by a residential school approved by the Department of Education and 09 Early Development under AS 14.16.200; 10 (10) childhood early learning and development programs and 11 educational support to childhood early learning and development programs 12 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 13 a school district in the state, by the Department of Education and Early 14 Development, or through a state grant; and 15 (11) the operations of a nonprofit organization dedicated to 16 providing educational opportunities that promote the legacy of public service 17 contributions to the state and perpetuate ongoing educational programs that 18 foster public service leadership for future generations of residents of the state. 19 * Sec. 33. AS 43.77.045(a), as amended by sec. 49, ch. 92, SLA 2010, sec. 14, ch. 7, 20 FSSLA 2011, and sec. 25, ch. 74, SLA 2012, is amended to read: 21 (a) In addition to the credit allowed under AS 43.77.040, a person engaged in 22 a floating fisheries business is allowed a credit against the tax due under this chapter 23 for cash contributions accepted 24 (1) for direct instruction, research, and educational support purposes, 25 including library and museum acquisitions and operations, and contributions to 26 endowment, by an Alaska university foundation or by a nonprofit, public or private, 27 Alaska two-year or four-year college accredited by a regional accreditation 28 association; 29 (2) for secondary school level vocational education courses and 30 programs by a school district in the state; 31 (3) by a state-operated vocational technical education and training

01 school; [AND] 02 (4) for the Alaska higher education investment fund under 03 AS 37.14.750; 04 (5) for funding a scholarship awarded by a nonprofit organization 05 to a dual-credit student to defray the cost of a dual-credit course, including the 06 cost of 07 (A) tuition and textbooks; 08 (B) registration, course, and programmatic student fees; 09 (C) on-campus room and board at the postsecondary 10 institution in the state that provides the dual-credit course; 11 (D) transportation costs to and from a residential school 12 approved by the Department of Education and Early Development under 13 AS 14.16.200 or the postsecondary school in the state that provides the 14 dual-credit course; and 15 (E) other related educational and programmatic costs; 16 (6) for constructing, operating, or maintaining a residential 17 housing facility by a residential school approved by the Department of Education 18 and Early Development under AS 14.16.200; 19 (7) for childhood early learning and development programs and 20 educational support to childhood early learning and development programs 21 provided by a nonprofit corporation organized under AS 10.20, a tribal entity, or 22 a school district in the state, by the Department of Education and Early 23 Development, or through a state grant; and 24 (8) for the operations of a nonprofit organization dedicated to 25 providing educational opportunities that promote the legacy of public service 26 contributions to the state and perpetuate ongoing educational programs that 27 foster public service leadership for future generations of residents of the state. 28 * Sec. 34. AS 43.77.045(f) is amended by adding new paragraphs to read: 29 (3) "dual-credit student" means a secondary level student in the state 30 who simultaneously earns college and high school credit for a course; 31 (4) "nonprofit organization" means a charitable or educational

01 organization in the state that is exempt from taxation under 26 U.S.C. 501(c)(3) 02 (Internal Revenue Code). 03 * Sec. 35. AS 14.03.075 and AS 14.07.165(5) are repealed. 04 * Sec. 36. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 RETROACTIVE ISSUANCE OF A HIGH SCHOOL DIPLOMA. (a) A school 07 district shall issue a high school diploma to a student who was issued a certificate of 08 achievement under AS 14.03.075, as it read on August 31, 2014. 09 (b) In this section, "school district" has the meaning given in AS 14.30.350. 10 * Sec. 37. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 TRANSITION: CHARTER SCHOOL APPLICATIONS. Sections 5 and 6 of this Act 13 apply to charter school applications filed with a local school board on or after September 1, 14 2014. 15 * Sec. 38. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 TRANSITION: REGULATIONS. The Department of Education and Early 18 Development, the Department of Labor and Workforce Development, and the Department of 19 Revenue may adopt regulations necessary to implement their respective changes made by this 20 Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 21 before the effective date of the relevant provision of this Act implemented by the regulation. 22 * Sec. 39. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 LEGISLATIVE AUDIT OF ALASKA TECHNICAL AND VOCATIONAL 25 EDUCATION. By June 30, 2016, the legislative audit division shall conduct an audit of and 26 provide a report to the legislature on the funding and outcomes of technical and vocational 27 education programs provided under AS 23.15.820 - 23.15.850. 28 * Sec. 40. Section 38 of this Act takes effect immediately under AS 01.10.070(c). 29 * Sec. 41. Sections 15 and 18 - 22 of this Act take effect July 1, 2014. 30 * Sec. 42. Sections 1 and 16 of this Act take effect July 1, 2015. 31 * Sec. 43. Section 17 of this Act takes effect July 1, 2016.

01 * Sec. 44. Sections 24, 27, 30, and 33 of this Act take effect January 1, 2021. 02 * Sec. 45. Except as provided in secs. 40 - 44 of this Act, this Act takes effect September 1, 03 2014.