02/01/2013 08:00 AM Senate EDUCATION

         SB 17-EXTEND SPECIAL EDUCATION SERVICE AGENCY                                                                      
                                                                                                                                
7:59:59 AM                                                                                                                    
CHAIR STEVENS  announced that  the first  order of business  would                                                              
be  SB 17,  which extends  the sunset  for  the Special  Education                                                              
Service Agency  (SESA). He noted it  was the third hearing  of the                                                              
bill. He stated his intention to move the bill out of committee.                                                                
                                                                                                                                
8:00:55 AM                                                                                                                    
SENATOR DUNLEAVY  moved to  adopt the  CS for  SB 17, labeled  28-                                                              
LS0289\C, as the working document.                                                                                              
                                                                                                                                
CHAIR STEVENS objected for discussion purposes.                                                                                 
                                                                                                                                
8:01:16 AM                                                                                                                    
TIM LAMKIN,  Staff, Senator  Gary Stevens,  explained the  changes                                                              
to SB  17 on  behalf of  the sponsor.  He reviewed  that the  bill                                                              
addresses  three  policy areas  the  committee was  encouraged  to                                                              
consider.  The first  was whether  or not to  extend SESA's  date;                                                              
the second  was to consider the  manner in which SESA  is governed                                                              
and structured, in  light of the audit; the third  was the funding                                                              
of SESA.  He noted a  fourth area of  consideration in the  new CS                                                              
that would address language changes.                                                                                            
                                                                                                                                
He stated  that it  appears that  the committee  wishes to  extend                                                              
the sunset date,  to leave the structure of SESA  in place, and to                                                              
not take up the funding issue at this time.                                                                                     
                                                                                                                                
MR. LAMKIN addressed  extraneous language in Section  1 of version                                                              
C,  lines 10-14.  He said  he noticed  the language  did not  make                                                              
sense  and  that it  has  been  "on  the books"  since  1986.  The                                                              
language  appears to  say that  the Department  of Education  will                                                              
pay into TRS  and PERS on behalf  of SESA and will  withdraw those                                                              
funds from  SESA in order  to reimburse  itself. He noted  that is                                                              
not  the way  DEED does  business.  He said  after contacting  the                                                              
Division  of  Retirement  and Benefits,  the  Department  of  Law,                                                              
DEED, and  SESA, they all agreed  the language was  extraneous and                                                              
should be  repealed. He referred  to two statements of  support in                                                              
members files.                                                                                                                  
                                                                                                                                
CHAIR  STEVENS said  the committee  would return  to the topic  of                                                              
extraneous language later in the meeting.                                                                                       
                                                                                                                                
8:03:51 AM                                                                                                                    
PATRICK  PILLAI,  Executive Director,  Special  Education  Service                                                              
Agency (SESA),  agreed that  the language  can be eliminated  from                                                              
the statute.                                                                                                                    
                                                                                                                                
CHAIR STEVENS asked if Mr. Pillai had further comments on SB 17.                                                                
                                                                                                                                
MR. PILLAI  thanked the committee  for understanding  the critical                                                              
need  that  SESA  provides.  He  hoped  that  the  Senate  Finance                                                              
Committee would consider  increasing funding to SESA.  He said the                                                              
continuation of  SESA until 2021  will provide a  critical service                                                              
to school districts.                                                                                                            
                                                                                                                                
8:05:42 AM                                                                                                                    
CHAIR STEVENS agreed  that the structure of SESA  should remain in                                                              
place.                                                                                                                          
                                                                                                                                
MR.  PILLAI  commented  that  school  administrators  and  special                                                              
education directors  appreciate the extra services  SESA provides,                                                              
especially  for   multiple  disability  students   and  unexpected                                                              
service needs.                                                                                                                  
                                                                                                                                
CHAIR STEVENS thanked Mr. Pillai for his efforts with SESA.                                                                     
                                                                                                                                
8:07:52 AM                                                                                                                    
LES  MORSE,  Deputy  Commissioner,  Department  of  Education  and                                                              
Early Development  (DEED), testified in  support of SESA.  He said                                                              
he was available to answer questions.                                                                                           
                                                                                                                                
CHAIR  STEVENS asked  Mr. Morse  to address the  status of  SESA's                                                              
structure.                                                                                                                      
                                                                                                                                
MR. MORSE  replied that the current  system works well  as long as                                                              
everyone  is  actively  engaged.  He explained  that  he  and  Ms.                                                              
Nudelman  reviewed  statutory  requirements  of SESA  and  ensured                                                              
that DEED  has an appropriate  two-year plan  and budget  and that                                                              
the state's  special education administrator  is an  active member                                                              
of SESA's board.                                                                                                                
                                                                                                                                
CHAIR STEVENS  asked if Mr. Morse  was in agreement  with removing                                                              
the extraneous language.                                                                                                        
                                                                                                                                
MR. MORSE said he was.                                                                                                          
                                                                                                                                
8:10:07 AM                                                                                                                    
ELIZABETH  NUDELMAN, Director  of  School  Finance, Department  of                                                              
Education and  Early Development  (DEED), testified in  support of                                                              
SESA.  She said the  department  concurs with  the removal  of the                                                              
language.  The  department  does  not  make  payments  for  SESA's                                                              
employer contributions.                                                                                                         
                                                                                                                                
SENATOR HUGGINS asked if SESA employees are under TRS.                                                                          
                                                                                                                                
MR. MORSE said yes.                                                                                                             
                                                                                                                                
CHAIR STEVENS noted no further public testimony.                                                                                
                                                                                                                                
SENATOR GARDNER  voiced appreciation  for SESA's services  and its                                                              
importance.                                                                                                                     
                                                                                                                                
8:12:05 AM                                                                                                                    
CHAIR  STEVENS removed  his objection;  therefore,  version C  was                                                              
before the committee.                                                                                                           
                                                                                                                                
SENATOR DUNLEAVY  moved to  report CS for  SB 17, version  C, from                                                              
committee  with  individual recommendations  and  attached  fiscal                                                              
note.  There being  no objection,  CSSB 17 was  reported from  the                                                              
Senate Education Standing Committee.