Legislature(2025 - 2026)

2026-05-11 House Journal

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2026-05-11                     House Journal                      Page 2475
HB 261                                                                                                                        
The following was read the second time:                                                                                         
                                                                                                                                
     HOUSE BILL NO. 261                                                                                                         
     "An Act relating to education funding; and providing for an                                                                
     effective date."                                                                                                           
                                                                                                                                
with the: Journal Page                                                                                                          
                                                                                                                                
 EDC RPT CS(EDC) 4DP 1DNP 2NR 2016                                                                                              
 FN1: ZERO(EED) 2016                                                                                                            
 FN2: ZERO(EED) 2016                                                                                                            
 FN3: (EED) 2016                                                                                                                
 FN4: (EED/FUND CAP) 2016                                                                                                       
 FIN RPT CS(FIN) 6DP 1DNP 4AM 2410                                                                                              
 FN3: (EED) 2410                                                                                                                
 FN5: (EED/FUND CAP) 2410                                                                                                       
 FN6: (EED) 2410                                                                                                                
 FN7: ZERO(EED) 2410                                                                                                            
                                                                                                                                
Representative Kopp moved and asked unanimous consent that the                                                                  
following committee substitute be adopted in lieu of the original bill:                                                         
                                                                                                                                

2026-05-11                     House Journal                      Page 2476
     CS FOR HOUSE BILL NO. 261(FIN)                                                                                             
     (same title)                                                                                                               
                                                                                                                                
Representative Ruffridge objected and withdrew the objection. There                                                             
being no further objection, CSHB 261(FIN) was adopted.                                                                          
                                                                                                                                
Amendment No. 1 was offered  by Representative Himschoot:                                                                        
                                                                                                                                
Page 6, line 23:                                                                                                                
     Delete "must be based on"                                                                                              
     Insert "is adjusted to"                                                                                                
                                                                                                                                
Representative Himschoot moved and asked unanimous consent that                                                                 
Amendment No. 1 be adopted.                                                                                                     
                                                                                                                                
Representative Johnson objected and withdrew the objection. There                                                               
being no further objection, Amendment No. 1 was adopted.                                                                        
                                                                                                                                
Amendment No. 2 was offered  by Representative Vance:                                                                            
                                                                                                                                
Page 1, line 1, following "funding;" (title amendment):                                                                       
     Insert "relating to group insurance coverage and self-insurance                                                          
coverage for school district employees, employees of the University                                                           
of Alaska, and employees of other governmental units in the                                                                   
state;"                                                                                                                       
                                                                                                                                
Page 1, following line 6:                                                                                                       
     Insert a new bill section to read:                                                                                         
"* Sec. 2. AS 14.08.101 is amended to read:                                                                                   
           Sec. 14.08.101. Powers. A regional school board may                                                               
              (1)  sue and be sued;                                                                                             
              (2)  contract with the department, the Bureau of Indian                                                           
     Affairs, or any other school district, agency, or regional board for                                                       
     the provision of services, facilities, supplies, or utilities;                                                             
              (3)  determine its own fiscal procedures, including                                                               
     policies and procedures for the purchase of supplies and                                                                   
     equipment; the regional school boards are exempt from AS 37.05                                                             
     (Fiscal Procedures Act) and AS 36.30 (State Procurement Code);                                                             
              (4)  appoint, compensate, and otherwise control all school                                                        
     employees in accordance with this title; these employees are not                                                           

2026-05-11                     House Journal                      Page 2477
     subject to AS 39.25 (State Personnel Act);                                                                                 
              (5)  adopt regulations governing organization, policies,                                                          
     and procedures for the operation of the schools;                                                                           
              (6)  establish, maintain, operate, discontinue, and                                                               
       combine schools subject to the approval of the commissioner;                                                            
              (7)  recommend to the department projects for                                                                     
     construction, rehabilitation, and improvement of schools and                                                               
     education-related facilities as specified in AS 14.11.011(b), and                                                          
     plan, design, and construct the project when the responsibility for                                                        
     it is assumed under AS 14.11.020;                                                                                          
              (8)  by resolution adopted by a majority of all the                                                               
     members of the board and provided to the commissioner of the                                                               
     department, assume ownership of all land and buildings used in                                                             
     relation to the schools in the regional educational attendance area,                                                       
     as provided for in AS 14.08.151(b);                                                                                        
              (9)  provide housing for rental to teachers, by leasing                                                           
     existing housing from a local agency or individual, by entering                                                            
     into contractual arrangements with a local agency or individual to                                                         
     lease housing that will be constructed by the local agency or                                                              
     individual for that purpose, or, without using for the purpose that                                                        
     portion of public school funding that consists of state aid provided                                                       
     under AS 14.17, by constructing or otherwise acquiring housing                                                             
     that is owned and managed by the regional educational attendance                                                           
     area for rental to teachers;                                                                                               
              (10)  employ a chief school administrator;                                                                        
              (11)  apply for and use the proceeds of a loan from the                                                           
       Alaska energy efficiency revolving loan fund (AS 18.56.855);                                                            
              (12)  establish and maintain participation in a policy                                                        
     of insurance as authorized by AS 14.27.010;                                                                            
              (13)  exercise those other functions that may be necessary                                                    
     for the proper performance of its responsibilities."                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 4, following line 28:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 6. AS 14.14.090 is amended to read:                                                                                   
         Sec. 14.14.090. Duties of school boards. In addition to other                                                        
     duties, a school board shall                                                                                               
                                                                                                                                

2026-05-11                     House Journal                      Page 2478
              (1)  determine and disburse the total amount to be made                                                           
     available for compensation of all school employees and                                                                     
     administrative officers, including, when applicable, the amount                                                        
     necessary to pay for the district's participation in a policy of                                                       
     insurance under AS 14.27.010;                                                                                          
              (2)  provide for, during the school term of each year, an                                                         
     educational program for each school age child who is enrolled in                                                           
     or a resident of the district;                                                                                             
              (3)  withhold the salary for the last month of service of a                                                       
     teacher or administrator until the teacher or administrator has                                                            
     submitted all summaries, statistics, and reports that the school                                                           
     board may require by bylaws;                                                                                               
              (4)  transmit, when required by the assembly or council                                                           
     but not more often than once a month, a summary report and                                                                 
     statement of money expended;                                                                                               
              (5)  keep the minutes of meetings and a record of all                                                             
     proceedings of the school board in a pertinent form;                                                                       
              (6)  keep the records and files of the school board open to                                                       
     inspection by the public at the principal administrative office of                                                         
     the district during reasonable business hours;                                                                             
              (7)  establish procedures for the review and selection of                                                         
     all textbooks and instructional materials at least once every 10                                                           
     years, including textbooks and curriculum materials for statewide                                                          
     correspondence programs, before they are introduced into the                                                               
     school curriculum; the review includes a review for violations of                                                          
     AS 14.18.060; nothing in this paragraph precludes a                                                                        
     correspondence study student, or the parent or guardian of a                                                               
     correspondence study student, from privately obtaining or using                                                            
     textbooks or curriculum material not provided by the school                                                                
     district;                                                                                                                  
              (8)  provide prospective employees with information                                                               
     relating to the availability and cost of housing in rural areas to                                                         
     which they might be assigned, and, when possible, assist them in                                                           
     locating housing; however, nothing in this paragraph requires a                                                            
     school district to provide teacher housing, whether district owned,                                                        
     leased, rented, or through other means, nor does it require a school                                                       
     board to engage in a subsidy program of any kind regarding                                                                 
     teacher housing;                                                                                                           
              (9)  train persons required to report under AS 47.17.020,                                                         
     in the recognition and reporting of child abuse, neglect, and sexual                                                       

2026-05-11                     House Journal                      Page 2479
     abuse of a minor;                                                                                                          
              (10)  provide for the development and implementation of                                                           
     a preventive maintenance program for school facilities; in this                                                            
     paragraph, "preventive maintenance" means scheduled                                                                        
     maintenance actions that prevent the premature failure or extend                                                           
     the useful life of a facility, or a facility's systems and components,                                                     
     and that are cost-effective on a life-cycle basis;                                                                         
              (11)  establish procedures for providing the training under                                                       
     AS 14.18.060, AS 14.20.149, 14.20.680, AS 14.30.355,                                                                       
     14.30.356, 14.30.362, AS 14.33.100, AS 18.66.310, and                                                                      
     AS 47.17.022; the procedures established under this paragraph                                                              
     must include a training schedule that ensures that not less than 50                                                        
     percent of the total certificated staff employed by the district                                                           
     receive all of the training not less than every two years and that all                                                     
     of the certificated staff employed by the district receive all of the                                                      
     training not less than every four years."                                                                                  
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 14, line 18:                                                                                                               
     Delete "sec. 9"                                                                                                            
     Insert "sec. 11"                                                                                                           
                                                                                                                                
Page 16, following line 19:                                                                                                     
     Insert new bill sections to read:                                                                                          
"* Sec. 18. AS 14 is amended by adding a new chapter to read:                                                                 
     Chapter 27. University and School District Employee Health                                                               
     Insurance.                                                                                                               
         Sec. 14.27.010. University and school district employee                                                              
     group health insurance. (a) A school employer may elect to                                                               
     participate in a policy of insurance selected by the commissioner                                                          
     of administration that includes health insurance coverage of                                                               
     school employees. If a school employer makes that election, the                                                            
     commissioner of administration shall select either a policy of                                                             
     group insurance under AS 39.30.090 that covers state employees                                                             
     and school employees, or a policy of self-insurance, provided by                                                           
     the Department of Administration under AS 39.30.091, that                                                                  
     provides insurance coverage to state employees and school                                                                  
     employees.                                                                                                                 
         (b)  Subject to (e) of this section, a participating school                                                            

2026-05-11                     House Journal                      Page 2480
     employer shall contribute to the group health and life benefits                                                            
     fund established under AS 39.30.095 an amount equal to the rate                                                            
     of employer contribution and the rate of employee contribution set                                                         
        by the commissioner of administration under AS 39.30.095.                                                              
         (c)  In addition to the contribution required under (b) of this                                                        
     section and the reimbursement required under (d) of this section, a                                                        
     participating school employer shall reimburse the Department of                                                            
     Administration an amount equal to the state's cost, if any, of                                                             
     procuring necessary excess loss insurance in connection with                                                               
     coverage of the school employees under AS 39.30.091.                                                                       
         (d)  In addition to the contribution required under (b) of this                                                        
     section and the reimbursement required under (c) of this section, a                                                        
     participating school employer shall reimburse the Department of                                                            
     Administration the cost of paying insurance claims for the first                                                           
     four months school employees are covered by a policy of self-                                                              
     insurance under AS 39.30.091. The commissioner of                                                                          
     administration shall allow the reimbursement to be made in equal                                                           
     installments over a period not to exceed 10 years from the date the                                                        
     school employer's participation in the policy begins.                                                                      
         (e)  Subject to AS 23.40.070 - 23.40.260 (Public Employee                                                              
     Relations Act), a participating school employer may require                                                                
     school employees to pay some or all of the school employer's                                                               
     contribution under (b) of this section and reimbursement under (c)                                                         
     and (d) of this section.                                                                                                   
         (f)  In this section,                                                                                                  
              (1)  "school employee" means a person employed by a                                                               
     municipal school district, a regional educational attendance area,                                                         
     or the University of Alaska;                                                                                               
              (2)  "school employer" means a municipal school district,                                                         
     a regional educational attendance area, or the University of                                                               
     Alaska.                                                                                                                    
   * Sec. 19. AS 14.40.170(b) is amended to read:                                                                             
         (b)  The Board of Regents may                                                                                          
              (1)  adopt reasonable rules, orders, and plans with                                                               
     reasonable penalties for the good government of the university and                                                         
     for the regulation of the Board of Regents;                                                                                
              (2)  determine and regulate the course of instruction in the                                                      
     university with the advice of the president;                                                                               
              (3)  set student tuition and fees;                                                                                
              (4)  receive university receipts and, subject to legislative                                                      

2026-05-11                     House Journal                      Page 2481
     appropriation, expend university receipts in accordance with                                                               
     AS 37.07 (Executive Budget Act);                                                                                           
              (5)  apply for and use the proceeds of a loan from the                                                            
       Alaska energy efficiency revolving loan fund (AS 18.56.855);                                                        
              (6)  establish and maintain participation in an                                                               
     insurance policy that includes health insurance, as authorized                                                         
     under AS 14.27.010, to cover persons employed by the                                                                   
     university.                                                                                                            
   * Sec. 20. AS 39.30.090(a) is amended to read:                                                                             
         (a)  The Department of Administration may obtain a policy or                                                           
     policies of group insurance covering state employees, persons                                                              
     entitled to coverage under AS 14.25.168, 14.25.480,                                                                        
     AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145,                                                             
     employees of other participating governmental units, or persons                                                            
     entitled to coverage under AS 23.15.136, subject to the following                                                          
     conditions:                                                                                                                
              (1)  a group insurance policy shall provide one or more of                                                        
     the following benefits: life insurance, accidental death and                                                               
     dismemberment insurance, weekly indemnity insurance, hospital                                                              
     expense insurance, surgical expense insurance, dental expense                                                              
     insurance, audiovisual insurance, or other medical care insurance;                                                         
              (2)  each eligible employee of the state or other                                                             
     participating governmental unit and [,] the spouse and the                                                             
     unmarried children chiefly dependent on the eligible employee for                                                          
     support [, AND EACH ELIGIBLE EMPLOYEE OF ANOTHER                                                                           
     PARTICIPATING GOVERNMENTAL UNIT] shall be covered                                                                          
     by the group policy, unless exempt under regulations adopted by                                                            
     the commissioner of administration;                                                                                        
              (3)  a governmental unit may participate under a group                                                            
     policy if                                                                                                                  
                  (A)  its governing body adopts a resolution                                                                   
         authorizing participation and payment of required premiums;                                                            
                  (B)  a certified copy of the resolution is filed with the                                                     
         Department of Administration; and                                                                                      
                  (C)  the commissioner of administration approves the                                                          
         participation in writing;                                                                                              
              (4)  in procuring a policy of group health or group life                                                          
     insurance as provided under this section or excess loss insurance                                                          
     as provided in AS 39.30.091, the Department of Administration                                                              
     shall comply with the dual choice requirements of AS 21.86.310,                                                            

2026-05-11                     House Journal                      Page 2482
     and shall obtain the insurance policy from an insurer authorized to                                                        
     transact business in the state under AS 21.09, a hospital or                                                               
     medical service corporation authorized to transact business in this                                                        
     state under AS 21.87, or a health maintenance organization                                                                 
     authorized to operate in this state under AS 21.86; an excess loss                                                         
     insurance policy may be obtained from a life or health insurer                                                             
     authorized to transact business in this state under AS 21.09 or                                                            
     from a hospital or medical service corporation authorized to                                                               
     transact business in this state under AS 21.87;                                                                            
              (5)  the Department of Administration shall make                                                                  
     available bid specifications for desired insurance benefits or for                                                         
     administration of benefit claims and payments to (A) all insurance                                                         
     carriers authorized to transact business in this state under                                                               
     AS 21.09 and all hospital or medical service corporations                                                                  
     authorized to transact business under AS 21.87 who are qualified                                                           
     to provide the desired benefits; and (B) insurance carriers                                                                
     authorized to transact business in this state under AS 21.09,                                                              
     hospital or medical service corporations authorized to transact                                                            
     business under AS 21.87, and third-party administrators licensed                                                           
     to transact business in this state and qualified to provide                                                                
     administrative services; the specifications shall be made available                                                        
     at least once every five years; the lowest responsible bid submitted                                                       
     by an insurance carrier, hospital or medical service corporation, or                                                       
     third-party administrator with adequate servicing facilities shall                                                         
     govern selection of a carrier, hospital or medical service                                                                 
     corporation, or third-party administrator under this section or the                                                        
     selection of an insurance carrier or a hospital or medical service                                                         
     corporation to provide excess loss insurance as provided in                                                                
     AS 39.30.091;                                                                                                              
              (6)  if the aggregate of dividends payable under the group                                                        
     insurance policy exceeds the governmental unit's share of the                                                              
     premium, the excess shall be applied by the governmental unit for                                                          
     the sole benefit of the employees;                                                                                         
              (7)  a person receiving benefits under AS 14.25.110,                                                              
     AS 22.25, AS 39.35, or former AS 39.37 may continue the life                                                               
     insurance coverage that was in effect under this section at the time                                                       
     of termination of employment with the state or participating                                                               
     governmental unit;                                                                                                         
              (8)  a person electing to have insurance under (7) of this                                                        
     subsection shall pay the cost of this insurance;                                                                           

2026-05-11                     House Journal                      Page 2483
              (9)  for each permanent part-time employee electing                                                               
     coverage under this section, the state shall contribute one-half the                                                       
     state contribution rate for permanent full-time state employees,                                                           
     and the permanent part-time employee shall contribute the other                                                            
     one-half;                                                                                                                  
              (10)  a person receiving benefits under AS 14.25,                                                                 
     AS 22.25, AS 39.35, or former AS 39.37 may obtain auditory,                                                                
     visual, and dental insurance for that person and eligible                                                                  
     dependents under this section; the level of coverage for persons                                                           
     over 65 shall be the same as that available before reaching age 65                                                         
     except that the benefits payable shall be supplemental to any                                                              
     benefits provided under the federal old age, survivors, and                                                                
     disability insurance program; a person electing to have insurance                                                          
     under this paragraph shall pay the cost of the insurance; the                                                              
     commissioner of administration shall adopt regulations                                                                     
     implementing this paragraph;                                                                                               
              (11)  a person receiving benefits under AS 14.25,                                                                 
     AS 22.25, AS 39.35, or former AS 39.37 may obtain long-term                                                                
     care insurance for that person and eligible dependents under this                                                          
     section; a person who elects insurance under this paragraph shall                                                          
     pay the cost of the insurance premium; the commissioner of                                                                 
     administration shall adopt regulations to implement this                                                                   
     paragraph;                                                                                                                 
              (12)  each licensee holding a current operating agreement                                                         
     for a vending facility under AS 23.15.010 - 23.15.210 shall be                                                             
     covered by the group policy that applies to governmental units                                                             
     other than the state.                                                                                                      
   * Sec. 21. AS 39.30.090(b)(2) is amended to read:                                                                          
              (2)  "governmental unit" means the state, a municipality,                                                         
     a school district, the University of Alaska, or other political                                                    
     subdivision of the state, and the North Pacific Fishery                                                                    
     Management Council;                                                                                                        
   * Sec. 22. AS 39.30.090(b) is amended by adding a new paragraph                                                            
to read:                                                                                                                        
              (4)  "school district" means a municipal school district or                                                       
     regional educational attendance area.                                                                                      
   * Sec. 23. AS 39.30.090 is amended by adding a new subsection to                                                           
read:                                                                                                                           
         (c)  When the Department of Administration receives a                                                                  
     resolution from a governmental unit authorizing participation                                                              

2026-05-11                     House Journal                      Page 2484
     under a state group insurance policy, before the commissioner of                                                           
     administration approves the participation, the department shall                                                            
     investigate the potential cost of admitting the unit, including                                                            
     whether as a result of admitting the unit the rates of eligible                                                            
     employees will increase or decrease, and provide actuarial                                                                 
     analysis to the legislature.                                                                                               
   * Sec. 24. AS 39.30.091 is amended to read:                                                                                
         Sec. 39.30.091. Authorization for self-insurance and excess                                                          
     loss insurance. Notwithstanding AS 21.86.310 or AS 39.30.090,                                                            
     the Department of Administration may provide, by means of self-                                                            
     insurance, one or more of the benefits listed in AS 39.30.090(a)(1)                                                        
     for [STATE] employees eligible under AS 39.30.090(a) [FOR                                                              
     THE BENEFITS BY LAW] or under a collective bargaining                                                                      
     agreement and for persons receiving benefits under AS 14.25,                                                               
     AS 22.25, AS 39.35, or former AS 39.37, and their dependents.                                                              
     The department shall procure any necessary excess loss insurance                                                           
     under AS 39.30.090.                                                                                                        
   * Sec. 25. AS 39.30.091 is amended by adding a new subsection to                                                           
read:                                                                                                                           
         (b)  If the department is required by (a) of this section to                                                           
     procure excess loss insurance in connection with coverage of                                                               
     employees who are not state employees, the department may                                                                  
     allocate the cost of that insurance across all employers, other than                                                       
     the state, that participate in self-insurance provided by the                                                              
     department under this section."                                                                                            
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 16, following line 25:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 29. The uncodified law of the State of Alaska is amended by                                                           
adding a new section to read:                                                                                                   
     APPLICABILITY. Sections 2, 6, and 18 - 25 of this Act apply to                                                             
a contract or collective bargaining agreement that becomes legally                                                              
binding on or after the effective date of secs. 2, 6, and 18 - 25 of this                                                       
Act."                                                                                                                           
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
                                                                                                                                

2026-05-11                     House Journal                      Page 2485
Page 16, line 29:                                                                                                               
     Delete "sec. 6"                                                                                                            
     Insert "sec. 8"                                                                                                            
                                                                                                                                
Page 17, line 1:                                                                                                                
     Delete "sec. 6"                                                                                                            
     Insert "sec. 8"                                                                                                            
                                                                                                                                
Page 17, line 3:                                                                                                                
     Delete "sec. 6"                                                                                                            
     Insert "sec. 8"                                                                                                            
                                                                                                                                
Page 17, line 6:                                                                                                                
     Delete "sec. 6"                                                                                                            
     Insert "sec. 8"                                                                                                            
                                                                                                                                
Page 17, line 11:                                                                                                               
     Delete "sec. 7"                                                                                                            
     Insert "sec. 9"                                                                                                            
                                                                                                                                
Page 17, line 16:                                                                                                               
     Delete "sec. 7"                                                                                                            
     Insert "sec. 9"                                                                                                            
                                                                                                                                
Page 17, line 17:                                                                                                               
     Delete "sec. 8"                                                                                                            
     Insert "sec. 10"                                                                                                           
                                                                                                                                
Page 17, line 18:                                                                                                               
     Delete "sec. 14"                                                                                                           
     Insert "sec. 16"                                                                                                           
     Delete "sec. 15"                                                                                                           
     Insert "sec. 17"                                                                                                           
                                                                                                                                
Page 17, line 21:                                                                                                               
     Delete "sec. 8"                                                                                                            
     Insert "sec. 10"                                                                                                           
                                                                                                                                
Page 17, line 22:                                                                                                               
     Delete "sec. 14"                                                                                                           
     Insert "sec. 16"                                                                                                           

2026-05-11                     House Journal                      Page 2486
Page 17, line 26:                                                                                                               
     Delete "sec. 8"                                                                                                            
     Insert "sec. 10"                                                                                                           
                                                                                                                                
Page 17, following line 26:                                                                                                     
     Insert new bill sections to read:                                                                                          
"* Sec. 32. The uncodified law of the State of Alaska is amended by                                                           
adding a new section to read:                                                                                                   
     TRANSITION: TRANSFER OF SELF-FUNDED INSURANCE                                                                              
RESERVE. Not later than 30 days after enrolling in a health care plan                                                           
administered by the state under AS 39.30.090 or 39.30.091, a                                                                    
governmental unit that, before the effective date of this section,                                                              
maintains a self-funded insurance reserve for the purpose of paying                                                             
employee health insurance claims shall transfer the closing balance of                                                          
that reserve to the group health and life benefits fund established under                                                       
AS 39.30.095. An amount transferred under this section by a                                                                     
governmental unit that is a school district shall be applied to offset                                                          
reimbursement owed by that school district under AS 14.27.010(d),                                                               
enacted by sec. 18 of this Act. If the amount transferred exceeds the                                                           
amount necessary to offset the reimbursement owed, the excess shall                                                             
be applied to reduce the rate of employee contribution set by the                                                               
commissioner of administration under AS 39.30.095 and required                                                                  
under AS 14.27.010(b). In this section, "governmental unit" has the                                                             
meaning given in AS 39.30.090(b).                                                                                               
   * Sec. 33. The uncodified law of the State of Alaska is amended by                                                         
adding a new section to read:                                                                                                   
     TRANSITION: REGULATIONS. The commissioner of                                                                               
administration shall adopt regulations necessary to implement the                                                               
changes made by secs. 2, 6, 18 - 25, 29, and 32 of this Act. The                                                                
regulations may not take effect before the effective date of the law                                                            
implemented by the regulation.                                                                                                  
   * Sec. 34. Sections 32 and 33 of this Act take effect immediately                                                          
under AS 01.10.070(c)."                                                                                                         
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 17, line 27:                                                                                                               
     Delete "Sections 10 and 18"                                                                                                
     Insert "Sections 12 and 28"                                                                                                
                                                                                                                                

2026-05-11                     House Journal                      Page 2487
Page 17, line 29:                                                                                                               
     Delete "sec. 21"                                                                                                           
     Insert "secs. 34 and 35"                                                                                                   
                                                                                                                                
Representative Vance moved and asked unanimous consent that                                                                     
Amendment No. 2 be adopted.                                                                                                     
                                                                                                                                
Representative Story objected.                                                                                                  
                                                                                                                                
Representative Stutes rose to a point of order regarding impugning the                                                          
motives of others.                                                                                                              
                                                                                                                                
The Speaker cautioned members to refrain from impugning the                                                                     
motives of others.                                                                                                              
                                                                                                                                
The question being:  "Shall Amendment No. 2 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 261(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 2                                                                                                                 
                                                                                                                                
YEAS:  19   NAYS:  21   EXCUSED:  0   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Allard, Bynum, Costello, Coulombe, Elam, Johnson, Kopp,                                                                  
McCabe, Moore, D.Nelson, G.Nelson, Prax, Ruffridge, Saddler,                                                                    
Schwanke, St. Clair, Tomaszewski, Underwood, Vance                                                                              
                                                                                                                                
Nays:  Carrick, Dibert, Edgmon, Eischeid, Fields, Foster, Frier,                                                                
Galvin, Gray, Hall, Hannan, Himschoot, Holland, Jimmie, Josephson,                                                              
Mears, Mina, Schrage, Stapp, Story, Stutes                                                                                      
                                                                                                                                
And so, Amendment No. 2 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 3 was offered  by Representative Bynum:                                                                            
                                                                                                                                
Page 6, line 25, following "AS 14.17.600;":                                                                                 
     Insert "or"                                                                                                            
                                                                                                                                
Page 6, lines 26 - 27:                                                                                                          
     Delete all material.                                                                                                       
                                                                                                                                

2026-05-11                     House Journal                      Page 2488
Renumber the following sub-subparagraph accordingly.                                                                            
                                                                                                                                
Page 6, lines 30 - 31:                                                                                                          
     Delete "greater of the ADMs described in (1) or (2) of this                                                            
subsection by five"                                                                                                         
        Insert "ADM described in (i) of this subparagraph by 2.5"                                                          
Page 12, lines 11 - 13:                                                                                                         
     Delete all material and insert:                                                                                            
                  "(A)  the district's prior three-year average                                                             
         intensive student count, calculated by combining the                                                               
         number of special education students who needed and                                                                
         received intensive services and were enrolled on the last                                                          
         day of the count period conducted under AS 14.17.600(a)                                                            
         in each of the immediately preceding three fiscal years and                                                        
         dividing that sum by three; or"                                                                                    
                                                                                                                                
Page 12, line 16, following "AS 14.17.600(a)":                                                                              
     Insert ", but only if the number of special education students                                                         
who needed and received intensive services and were enrolled on                                                             
the last day of the count period conducted in the current fiscal                                                            
year under AS 14.17.600(a) exceeds the ADM described in (A) of                                                              
this paragraph by 2.5 percent or more"                                                                                      
                                                                                                                                
Page 12, lines 17 - 20:                                                                                                         
     Delete all material.                                                                                                       
                                                                                                                                
Page 13, lines 11 - 13:                                                                                                         
     Delete "number of special education students who needed and                                                            
received intensive services and are enrolled on the last day of the                                                         
count period, which the department shall use"                                                                               
     Insert "intensive student count information the department                                                             
determines is necessary to calculate a district's intensive services                                                        
funding under AS 14.17.420. The department shall use the                                                                    
intensive student count information"                                                                                        
                                                                                                                                
Page 14, line 25:                                                                                                               
      Delete "Except as provided in (d) of this section, the [THE]"                                                        
     Insert "The"                                                                                                               
                                                                                                                                
                                                                                                                                

2026-05-11                     House Journal                      Page 2489
Page 14, line 27:                                                                                                               
     Delete "district's student count data reported in the previous"                                                       
     Insert "[DISTRICT'S STUDENT COUNT] data reported for that"                                                             
                                                                                                                                
Page 15, lines 6 - 7:                                                                                                           
     Delete "AS 14.17.420(a)(2)(B) or (C) or 14.17.410(b)(1)(A)(iii)"                                                           
     Insert "AS 14.17.410(b)(1)(A)(ii) or 14.17.420(a)(2)(B)"                                                                   
                                                                                                                                
Page 16, line 8, following "AS 14.17.600;":                                                                                     
     Insert "or"                                                                                                                
                                                                                                                                
Page 16, lines 9 - 10:                                                                                                          
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following paragraph accordingly.                                                                                   
                                                                                                                                
Page 16, lines 13 - 14:                                                                                                         
     Delete "greater of the ADMs described in (1) or (2) of this                                                                
subsection by five"                                                                                                             
     Insert "ADM described in (1) of this subsection by 2.5"                                                                    
                                                                                                                                
Page 17, lines 11 - 15:                                                                                                         
     Delete "year ending June 30, 2027, if student count data is                                                                
unavailable to calculate the number of special education students who                                                           
needed and received intensive services and were enrolled on the last                                                            
day of the count period conducted under AS 14.17.600(a), a district                                                             
shall use student count data that is applicable to the fiscal year ending                                                       
June 30, 2026,"                                                                                                                 
     Insert "years ending June 30, 2027, June 30, 2028, and June 30,                                                            
2029, if student count data is unavailable to calculate a district's prior                                                      
three-year average intensive student count under                                                                                
AS 14.17.420(a)(2)(A), as amended by sec. 7 of this Act, a district                                                             
shall, for each year of the prior three-year average intensive student                                                          
count for which data is unavailable, use student count data that is                                                             
applicable to that year"                                                                                                        
                                                                                                                                
Representative Bynum moved and asked unanimous consent that                                                                     
Amendment No. 3 be adopted.                                                                                                     
                                                                                                                                
Representative Story objected.