04/01/2008 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic | 
|---|---|
| Start | |
| SB285 | |
| HB266 | |
| HB403 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 266 | TELECONFERENCED | |
| + | SB 28 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 285 | TELECONFERENCED | |
| += | HB 403 | TELECONFERENCED | |
                    ALASKA STATE LEGISLATURE                                                                                  
 HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE                                                               
                         April 1, 2008                                                                                          
                           3:05 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Peggy Wilson, Chair                                                                                              
Representative Bob Roses, Vice Chair                                                                                            
Representative Anna Fairclough                                                                                                  
Representative Wes Keller                                                                                                       
Representative Paul Seaton                                                                                                      
Representative Sharon Cissna                                                                                                    
Representative Berta Gardner                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 285(FIN)                                                                                                 
"An Act  relating to the  power and  duties of the  Department of                                                               
Education  and  Early  Development  for  improving  instructional                                                               
practices  in school  districts; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - MOVED HCS CSSB 258(HES) OUT OF COMMITTEE                                                                                 
                                                                                                                                
HOUSE BILL NO. 266                                                                                                              
"An  Act relating  to the  approval and  administration of  child                                                               
care services  by the Department of  Administration primarily for                                                               
the benefit  of state officers  and employees; and  providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 403                                                                                                              
"An  Act  appropriating  $100,000,000 to  the  Alaska  achievers'                                                               
scholarship fund; and providing for an effective date."                                                                         
                                                                                                                                
     - MOVED HB 403 OUT OF COMMITTEE                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 28(FIN)                                                                                                  
"An  Act  relating  to  limitations  on  mandatory  overtime  for                                                               
registered nurses  and licensed  practical nurses in  health care                                                               
facilities; and providing for an effective date."                                                                               
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 285                                                                                                                  
SHORT TITLE: STATE INTERVENTION IN SCHOOL DISTRICT                                                                              
SPONSOR(S): SENATOR(S) STEVENS                                                                                                  
                                                                                                                                
02/19/08       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/08       (S)       SED, FIN                                                                                               
02/27/08       (S)       SED AT 8:00 AM BUTROVICH 205                                                                           
02/27/08       (S)       Heard & Held                                                                                           
02/27/08       (S)       MINUTE(SED)                                                                                            
02/29/08       (S)       SED AT 8:00 AM BUTROVICH 205                                                                           
02/29/08       (S)       Moved CSSB 285(SED) Out of Committee                                                                   
02/29/08       (S)       MINUTE(SED)                                                                                            
02/29/08       (S)       SED RPT CS 1DP 2NR 1AM SAME TITLE                                                                      
02/29/08       (S)       DP: STEVENS                                                                                            
02/29/08       (S)       NR: DAVIS, OLSON                                                                                       
02/29/08       (S)       AM: HUGGINS                                                                                            
03/01/08       (S)       SED AT 10:00 AM SENATE FINANCE 532                                                                     
03/01/08       (S)       -- MEETING CANCELED --                                                                                 
03/10/08       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/10/08       (S)       Heard & Held                                                                                           
03/10/08       (S)       MINUTE(FIN)                                                                                            
03/15/08       (H)       HES AT 9:00 AM CAPITOL 106                                                                             
03/15/08       (H)       <Bill Hearing Canceled>                                                                                
03/19/08       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/19/08       (S)       Moved CSSB 285(FIN) Out of Committee                                                                   
03/19/08       (S)       MINUTE(FIN)                                                                                            
03/19/08       (S)       FIN RPT CS 2DP 3NR 1AM SAME TITLE                                                                      
03/19/08       (S)       LETTER OF INTENT WITH FIN REPORT                                                                       
03/19/08       (S)       DP: ELTON, THOMAS                                                                                      
03/19/08       (S)       NR: STEDMAN, HOFFMAN, OLSON                                                                            
03/19/08       (S)       AM: DYSON                                                                                              
03/24/08       (S)       FIN LETTER OF INTENT AMENDED                                                                           
03/24/08       (S)       TRANSMITTED TO (H)                                                                                     
03/24/08       (S)       VERSION: CSSB 285(FIN)                                                                                 
03/25/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/25/08       (H)       HES, FIN                                                                                               
03/27/08       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
03/27/08       (H)       Heard & Held                                                                                           
03/27/08       (H)       MINUTE(HES)                                                                                            
04/01/08       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 266                                                                                                                  
SHORT TITLE: STATE EMPLOYEE DEPENDENTS CHILD CARE CTRS                                                                          
SPONSOR(S): REPRESENTATIVE(S) KERTTULA                                                                                          
                                                                                                                                
01/04/08       (H)       PREFILE RELEASED 1/4/08                                                                                
01/15/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/15/08       (H)       STA, HES, FIN                                                                                          
03/18/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/18/08       (H)       Scheduled But Not Heard                                                                                
03/20/08       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/20/08       (H)       Moved CSHB 266(STA) Out of Committee                                                                   
03/20/08       (H)       MINUTE(STA)                                                                                            
03/25/08       (H)       STA RPT CS(STA) 6DP 1NR                                                                                
03/25/08       (H)       DP:   DOLL,   LYNN,   ROSES,   JOHANSEN,                                                               
                         JOHNSON, GRUENBERG                                                                                     
03/25/08       (H)       NR: COGHILL                                                                                            
04/01/08       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 403                                                                                                                  
SHORT TITLE: APPROP: SCHOLARSHIP FUND                                                                                           
SPONSOR(S): REPRESENTATIVE(S) GUTTENBERG                                                                                        
                                                                                                                                
02/19/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/08       (H)       HES, FIN                                                                                               
03/13/08       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
03/13/08       (H)       Scheduled But Not Heard                                                                                
03/25/08       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
03/25/08       (H)       Heard & Held                                                                                           
03/25/08       (H)       MINUTE(HES)                                                                                            
04/01/08       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TIM LAMKIN, Staff                                                                                                               
to Senator Gary Stevens                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the House committee substitute                                                                 
(HCS) for CSSB 285(FIN) on behalf of Senator Gary Stevens,                                                                      
sponsor.                                                                                                                        
                                                                                                                                
EDDY JEANS, Director                                                                                                            
School Finance and Facilities Section                                                                                           
Department of Education and Early Development (EED)                                                                             
POSITION STATEMENT:  Expressed support for the proposed                                                                       
amendments to CSSB 285(FIN).                                                                                                    
                                                                                                                                
REPRESENTATIVE BETH KERTTULA                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as the sponsor of HB 266.                                                                          
                                                                                                                                
LIA CARPENETI, Staff                                                                                                            
to Representative Beth Kerttula                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Responded to questions regarding  HB 266 on                                                             
behalf of Representative Kerttula, sponsor.                                                                                     
                                                                                                                                
NIKKI  MORRIS,   Childcare  Referral  Counselor   &  Publications                                                               
Specialist                                                                                                                      
Association  For  The Education  Of  Young  Children -  Southeast                                                               
Alaska (AEYC-SE Alaska)                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Provided  statewide  vacancy and  capacity                                                             
statistics for private child care services.                                                                                     
                                                                                                                                
VERN JONES, Chief Procurement Officer                                                                                           
Division of General Services                                                                                                    
Department of Administration (DOA)                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 266.                                                                       
                                                                                                                                
CHRISTIAN GOU-LEONHARDT, Staff                                                                                                  
to Representative David Guttenberg                                                                                              
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:      Presented   HB  403   on   behalf   of                                                             
Representative Guttenberg, sponsor.                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR PEGGY WILSON called the  House Health, Education and Social                                                             
Services  Standing  Committee meeting  to  order  at 3:05:31  PM.                                                             
Representatives Wilson, Keller, Seaton,  and Gardner were present                                                               
at the  call to order.   Representatives Fairclough,  Cissna, and                                                               
Roses arrived as the meeting was in progress.                                                                                   
                                                                                                                                
SB 285 - STATE INTERVENTION IN SCHOOL DISTRICT                                                                                
                                                                                                                                
3:06:30 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced that the  first order of business would be                                                               
CS FOR  SENATE BILL NO. 285(FIN),  "An Act relating to  the power                                                               
and duties of  the Department of Education  and Early Development                                                               
for improving  instructional practices  in school  districts; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
3:07:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  moved  to adopt  the  proposed  House                                                               
committee  substitute  (HCS)  for SB  285,  Version  25-LS1522\O,                                                               
Mischel, 4/1/08,  as the work  draft.  There being  no objection,                                                               
Version O was before the committee.                                                                                             
                                                                                                                                
3:08:20 PM                                                                                                                    
                                                                                                                                
TIM  LAMKIN,   Staff  to  Senator  Gary   Stevens,  Alaska  State                                                               
Legislature, reviewed  the changes  incorporated into  Version O.                                                               
On  page  3,   line  12,  the  phrase,  "based   on  low  student                                                               
performance," was added to provide a  clear and bright line as to                                                               
when  the Department  of Education  and  Early Development  shall                                                               
begin the  process of  stepping into  the district.   On  page 3,                                                               
line  13, the  words, "as  necessary," were  struck because  they                                                               
were deemed  unnecessary.   On page  3, line  14, the  words, "as                                                               
described  in  AS  14.07.030(14)  or (15);"  were  added  at  the                                                               
request  of the  department.   He said  this clarifies  that this                                                               
intervention   is   only   the  state's   accountability   system                                                               
intervention and  is unrelated  to No  Child Left  Behind (NCLB).                                                               
On  page  5,   line  21,  the  phrase,   "material,  and  student                                                               
management  tools"  was added.    However,  he pointed  out,  the                                                               
drafter omitted the word "learning",  as the sponsor had intended                                                               
the  added  phrase  to  read,  "material,  and  student  learning                                                               
management tools".   He requested  that the committee  consider a                                                               
conceptual amendment to add the word "learning".                                                                                
                                                                                                                                
CHAIR WILSON  pointed out an  additional change that was  made on                                                               
page 3  [line 28]  where the  word "redirecting"  was substituted                                                               
for the word "withhold".                                                                                                        
                                                                                                                                
MR.  LAMKIN confirmed  that this  substitution fixed  a technical                                                               
error identified by the prior committee.                                                                                        
                                                                                                                                
3:11:38 PM                                                                                                                    
                                                                                                                                
EDDY  JEANS, Director,  School  Finance  and Facilities  Section,                                                               
Department of Education and Early  Development (EED), stated that                                                               
the [EED] supports the amendments.                                                                                              
                                                                                                                                
REPRESENTATIVE  ROSES  said  he  believes  the  concerns  he  had                                                               
expressed last time were addressed  by the desk audit regulations                                                               
that  were just  passed by  the  school board.   The  regulations                                                               
referenced how  notice for intervention would  be given, provided                                                               
an end  date to the  intervention - the same  as the bill  does -                                                               
and delineated  the process that  would occur.  He  asked whether                                                               
Mr.  Jeans  is comfortable  that  these  regulations satisfy  the                                                               
committee's concerns.                                                                                                           
                                                                                                                                
MR. JEANS responded  the regulations do not include  the end date                                                               
that is included in  statute; it is in the bill  itself.  He said                                                               
[EED] asked  for and  received latitude from  the state  board to                                                               
make  any  necessary  conforming amendments  to  the  regulations                                                               
based on  the final  passage of  SB 285.   Some  adjustments will                                                               
probably be needed  and [EED] will do that once  session is over,                                                               
he advised.                                                                                                                     
                                                                                                                                
3:13:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  reviewed the  concerns he had  expressed at                                                               
the last meeting.   One concern was in regard  to the petitioning                                                               
by the  districts as to  when they would continue  or discontinue                                                               
the department  intervention.   He said  Version O  satisfies his                                                               
concern about  giving adequate  notice to  the districts  that an                                                               
intervention is going  to be done.  The other  concern he had had                                                               
was with  targeting a district,  or three schools out  of twelve,                                                               
or six schools  out of twelve, and going in  with an intervention                                                               
that required all schools to participate.   He said it appears to                                                               
him  that, under  Version O,  the  audits are  very specific  and                                                               
would go  to a school  and not a  district.  He  inquired whether                                                               
Mr.  Jeans  is  comfortable  the  committee  has  addressed  that                                                               
adequately.                                                                                                                     
                                                                                                                                
MR.  JEANS replied  the statutory  language before  the committee                                                               
does refer  to school or district,  but the intent of  this is to                                                               
do school-level  intervention before  having to get  to district-                                                               
level intervention  under adequate yearly progress  (AYP).  Under                                                               
NCLB,  the department  is required  to  intervene when  districts                                                               
fail  AYP for  multiple years.   Judge  Gleason's issue  was that                                                               
that is too long  for the state to sit back.   The state needs to                                                               
be  looking  at  individual  schools and  helping  those  schools                                                               
improve earlier.   [The department] has  the data to do  that and                                                               
it just so  happens to be the same data  that [the department] is                                                               
collecting under NCLB.                                                                                                          
                                                                                                                                
REPRESENTATIVE ROSES  related his understanding that  it is EED's                                                               
intent to do interventions on  a school-by-school basis and not a                                                               
districtwide basis.  The districtwide  basis comes into play when                                                               
there are requirements and mandates under NCLB.                                                                                 
                                                                                                                                
MR. JEANS stated he agreement.                                                                                                  
                                                                                                                                
REPRESENTATIVE ROSES  noted that [Version O]  references AS 14.17                                                               
regarding the  redirection of funds.   He said  his understanding                                                               
is that the  redirection of funds would occur  from the [federal]                                                               
Title  I funds  and,  in particular,  it would  be  that same  20                                                               
percent offset  that is required  under NCLB  - when a  school is                                                               
non-compliant the  requirement is  that 20  percent be  set aside                                                               
for remediation.   Is it the  intent of the department  that that                                                               
is where the redirected funds would come from, he asked.                                                                        
                                                                                                                                
MR. JEANS  answered the [federal]  Title I funds  currently apply                                                               
to  the  NCLB interventions  where  the  department is  requiring                                                               
districts  to hire  a  district coach  and  utilize their  school                                                               
improvement  grants.    The  school  improvement  grants  are  in                                                               
addition  to  the  regular  Title  I  funds.    So,  under  NCLB,                                                               
districts   are   receiving   additional   support   for   school                                                               
interventions,  and to  have the  department  direct those  funds                                                               
absolutely seems appropriate, he  said.  The department's concern                                                               
in this particular statute was  whether those district coaches or                                                               
school  coaches  would  be  a   school  district  employee  or  a                                                               
department  employee.   There is  approximately  $220,000 in  the                                                               
department's   fiscal  note   under   contractual  expenses,   he                                                               
explained, and  it is the  department's intent to use  that money                                                               
to hire  the school  coaches or district  coaches where  they are                                                               
required.   If  additional  funding is  required, the  department                                                               
will  come  back   and  ask  for  a  supplemental,   but  if  the                                                               
legislature  does not  give that  request, this  would allow  the                                                               
department  to  utilize  some  foundation  funds  to  hire  those                                                               
contract employees.                                                                                                             
                                                                                                                                
3:17:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  offered his  understanding it would  be the                                                               
department's intent to  take some of the foundation  funds if the                                                               
20 percent  of   Title I  funds had not  yet been  impacted under                                                               
NCLB or  if there were  additional grants given through  NCLB for                                                               
implementation of remediation programs.   The department's intent                                                               
would be to  only take the Title  I funds if it did  not have the                                                               
money or the foundation grants.                                                                                                 
                                                                                                                                
MR. JEANS concurred.                                                                                                            
                                                                                                                                
REPRESENTATIVE ROSES  said as long  as that intent is  clearly in                                                               
the  record he  has no  problem supporting  the language  of this                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE KELLER  characterized SB 285  as a good  bill, and                                                               
stated his support,  particularly given that it  is tied directly                                                               
to the proficiency of the student.                                                                                              
                                                                                                                                
3:19:01 PM                                                                                                                    
                                                                                                                                
MR. JEANS,  in response to Representative  Seaton, confirmed that                                                               
the department  supports adding  the word  "learning" on  page 5,                                                               
line 21, between the words "student" and "management".                                                                          
                                                                                                                                
REPRESENTATIVE SEATON  moved that the committee  adopt Conceptual                                                               
Amendment 1, as follows:                                                                                                        
                                                                                                                                
     Page 5, line 21, following "and student";                                                                                  
          Insert "learning"                                                                                                     
                                                                                                                                
There being no objection, Conceptual Amendment 1 was adopted.                                                                   
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH   inquired  as  to  whether   EED  has                                                               
received  some "push  back" from  the school  districts when  the                                                               
department has tried to intervene.                                                                                              
                                                                                                                                
MR. JEANS said yes.                                                                                                             
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  declared  her support  for  the  bill                                                               
because it  clarifies the  roles and  the reach  that EED  has in                                                               
making  sure students  achieve the  educational  goals that  have                                                               
been set.  She asked Mr.  Jeans whether he believes, as she does,                                                               
that  the state  has always  had that  authority to  intervene in                                                               
school districts.                                                                                                               
                                                                                                                                
MR. JEANS concurred that the  bill does clarify those issues, and                                                               
that the department  believes it has that  authority, and relayed                                                               
that  the department's  attorneys would  argue that  such is  the                                                               
case.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  said  she  would be  voting  to  move                                                               
Version O out  of committee in order to show  her support for EED                                                               
and  its authority  to  make sure  Alaskans  receive the  quality                                                               
education  they   are  entitled  to  through   the  Alaska  State                                                               
Constitution.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  ROSES   stated  that   the  intent  is   for  the                                                               
department  to  continue  updating the  legislature  through  its                                                               
annual report as to what  interventions have taken place and what                                                               
the  status of  those  schools is.   This  will  ensure that  the                                                               
legislature is  coordinated with the  department in terms  of the                                                               
legislature's responsibility.                                                                                                   
                                                                                                                                
MR. LAMKIN drew  attention to page 4, lines 30-31.   He suggested                                                               
that the words  "as necessary" be deleted in order  to conform to                                                               
the words being struck from page 3, line 13.                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  moved that the committee  adopt Conceptual                                                               
Amendment 2, as follows:                                                                                                        
                                                                                                                                
     Page 4, lines 30-31,                                                                                                       
          Delete "as necessary"                                                                                                 
                                                                                                                                
There being no objection, Conceptual Amendment 2 was adopted.                                                                   
                                                                                                                                
REPRESENTATIVE  SEATON asked  whether  the fiscal  note is  still                                                               
current given the changes that have been made to the bill.                                                                      
                                                                                                                                
MR. LAMKIN responded yes.                                                                                                       
                                                                                                                                
3:24:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES moved  to report  the proposed  HCS for  SB
285,  Version 25-LS1522\O,  Mischel, 4/1/08,  as amended,  out of                                                               
committee  with   the  attached  letter  of   intent,  individual                                                               
recommendations, and the accompanying fiscal  notes.  There being                                                               
no  objection, HCS  CSSB  285(HES) was  reported  from the  House                                                               
Health, Education and Social Services Standing Committee.                                                                       
                                                                                                                                
HB 266 - STATE EMPLOYEE DEPENDENTS CHILD CARE CTRS                                                                            
                                                                                                                                
3:24:58 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced  that the next order of  business would be                                                               
HOUSE  BILL  NO.  266,  "An  Act relating  to  the  approval  and                                                               
administration  of  child  care  services by  the  Department  of                                                               
Administration primarily  for the  benefit of state  officers and                                                               
employees; and providing for an  effective date."  [CSHB 266(STA)                                                               
was before the committee.]                                                                                                      
                                                                                                                                
3:25:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BETH KERTTULA,  Alaska State Legislature, sponsor,                                                               
testified that trying to alleviate  the "great crush" on Alaska's                                                               
childcare needs  is at the  heart of HB  266; it would  ease that                                                               
tremendous need  by allowing  state departments,  in consultation                                                               
with  the  Department  of  Administration   (DOA),  to  locate  a                                                               
childcare center  in a department's  building or, if there  is no                                                               
space in the  building, to enter into a childcare  consortium.  A                                                               
department could  choose whether to  get paid for  the childcare.                                                               
Half of the  states in the U.S. have on-site  childcare for state                                                               
employees, she  reported.  The  emphasis in  HB 266 is  for state                                                               
employees, but  other people can  be allowed to  participate when                                                               
space is available.                                                                                                             
                                                                                                                                
3:27:07 PM                                                                                                                    
                                                                                                                                
LIA  CARPENETI, Staff  to  Representative  Beth Kerttula,  Alaska                                                               
State  Legislature, sponsor,  added  that 45  percent of  Alaskan                                                               
families  with young  children said  they found  it difficult  to                                                               
find  childcare and  36 percent  of Alaskan  families with  young                                                               
children said  someone in their family  could not work or  had to                                                               
restrict  his/her  work  hours  due  to  the  cost,  quality,  or                                                               
availability of childcare.                                                                                                      
                                                                                                                                
3:28:25 PM                                                                                                                    
                                                                                                                                
NIKKI  MORRIS,   Childcare  Referral  Counselor   &  Publications                                                               
Specialist,  Association For  The Education  Of Young  Children -                                                               
Southeast Alaska (AEYC-SE Alaska),  provided the committee with a                                                               
list  of parents  willing to  be  contacted to  talk about  their                                                               
situation.    She said  AEYC-SE  Alaska  is the  local  childcare                                                               
resource and  referral agency in  Southeast Alaska.   She relayed                                                               
that across  Alaska there is  a 2-3  percent vacancy rate  at any                                                               
time for infant care - children under  30 months of age - in part                                                               
because childcare  licensing regulations  allow providers  a much                                                               
smaller number of  children under that age.  From  30 months to 5                                                               
years  and   into  school  age,   the  vacancy   rate  fluctuates                                                               
throughout  the year,  but  the  average is  9-30  percent.   Ms.                                                               
Morris said  she knows from  talking with parents every  day that                                                               
they are  generally very  hard pressed to  find a  situation that                                                               
will work for them, especially if their child is younger.                                                                       
                                                                                                                                
REPRESENTATIVE SEATON  inquired whether statistics  are available                                                               
for  state employees  who do  not have  access to  or who  cannot                                                               
afford childcare, as opposed to  statistics from across the state                                                               
in general.                                                                                                                     
                                                                                                                                
MS. MORRIS said not at this time.                                                                                               
                                                                                                                                
REPRESENTATIVE KELLER asked why there  is a shortage in childcare                                                               
providers.                                                                                                                      
                                                                                                                                
MS. MORRIS  replied that one  reason is  that there is  a limited                                                               
number of  spaces for the age  group under 30 months.   In Juneau                                                               
the birth  rate is about 40  births per month, but  a 2-3 percent                                                               
vacancy  rate  means  only  two  to  six  [childcare]  spots  are                                                               
available per month.  Another  reason is financial - childcare is                                                               
a difficult business.   Regardless of the setting,  the hours are                                                               
long, very  few programs can  afford health insurance,  and there                                                               
is an  education requirement  for providers.   For every  year in                                                               
childcare,  providers   must  receive   15  hours   of  training.                                                               
Additionally,  the assistance  rate  for childcare  has not  been                                                               
raised  since 2001.   Thus,  families are  struggling to  pay for                                                               
childcare, and  may not be able  to afford it even  if an opening                                                               
becomes available.   Also, a provider may not be  able to provide                                                               
childcare at a rate a family can afford.                                                                                        
                                                                                                                                
3:32:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  inquired  whether the  unavailability  of                                                               
childcare is detrimental to people working for the state.                                                                       
                                                                                                                                
MS. MORRIS answered  yes.  For example, one mother  she talked to                                                               
could only work about 10-15 hours  a week and still might have to                                                               
quit her job.   The couple was  paying $1200 a month  for a nanny                                                               
because infant care was non-existent at the time.                                                                               
                                                                                                                                
REPRESENTATIVE SEATON  asked whether providing  a state-supported                                                               
childcare  center, which  would  likely pay  higher wages,  would                                                               
result in  taking an already  limited number of  qualified people                                                               
away  from  private childcare  centers,  thus  resulting in  even                                                               
fewer childcare slots being available in the community.                                                                         
                                                                                                                                
MS. MORRIS posited that it  wouldn't because the higher pay would                                                               
attract more qualified people.                                                                                                  
                                                                                                                                
CHAIR WILSON surmised  that the profitability would  be better in                                                               
a childcare  center where the numbers  are larger than in  a home                                                               
setting.                                                                                                                        
                                                                                                                                
MS. MORRIS replied that that might be the case.                                                                                 
                                                                                                                                
REPRESENTATIVE  SEATON  surmised  that the  allowable  number  of                                                               
children a provider  can supervise would hold  true regardless of                                                               
the setting.   How would the  economics per provider change  in a                                                               
center setting, he inquired.                                                                                                    
                                                                                                                                
REPRESENTATIVE KERTTULA  answered that the  problem is a  lack of                                                               
space,  not a  lack of  providers, and  is one  reason why  other                                                               
states  have  gone to  allowing  centers  in their  state  office                                                               
buildings.   People would  have to go  to a lot  of work  to open                                                               
centers  in state  buildings, but  if  there was  space and  they                                                               
worked with the DOA it could  be done, she opined, and offered to                                                               
get further information to the committee.                                                                                       
                                                                                                                                
REPRESENTATIVE  SEATON  restated  his  concern  about  the  state                                                               
taking providers from the private sector.                                                                                       
                                                                                                                                
REPRESENTATIVE KERTTULA  responded that the intent  is to provide                                                               
state  employees  with  their own  childcare  space  and  thereby                                                               
alleviate  the shortage  of  childcare space  for  others in  the                                                               
community.                                                                                                                      
                                                                                                                                
3:39:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER asked how  childcare subsidies get paid and                                                               
whether they can be subsidized by the parent.                                                                                   
                                                                                                                                
REPRESENTATIVE KERTTULA said she  has not focused specifically on                                                               
the issue of subsidies because the bill doesn't.                                                                                
                                                                                                                                
REPRESENTATIVE ROSES  said his daughter  is a  childcare provider                                                               
in Colorado,  and when  his daughter looked  at leasing  space in                                                               
Colorado, it was cost prohibitive  because the number of children                                                               
that she  could take in, with  herself and one employee,  was too                                                               
small  to be  able to  make any  profit after  paying the  lease,                                                               
utilities,   and  insurance.      He  noted   that  the   finance                                                               
subcommittee on which  he serves just authorized  a rate increase                                                               
for  the state's  childcare subsidy.   Depending  on income,  the                                                               
subsidy can now go up to $70 a day.                                                                                             
                                                                                                                                
REPRESENTATIVE  KELLER asked  what  drives the  pricing and  what                                                               
prevents the provider from raising the price.                                                                                   
                                                                                                                                
REPRESENTATIVE ROSES  surmised that such is  controlled by supply                                                               
and demand.                                                                                                                     
                                                                                                                                
3:43:12 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  told the  committee about  a childcare  provider in                                                               
her area  who is unable to  raise her prices because  the parents                                                               
cannot  afford more.    Chair Wilson  further  related that  this                                                               
childcare provider  has helped  her employees  go to  school, but                                                               
then these  employees would  like to  have an  increased paycheck                                                               
after completing the  schooling.  This provider  looked at moving                                                               
her  childcare from  her  home  to a  large  center,  but it  was                                                               
unaffordable  and  the  provider  would  have  had  to  work  for                                                               
nothing.  The  economics are a dilemma and the  state's rules and                                                               
regulations are  stiff, said Chair  Wilson.  Additionally,  it is                                                               
different in every  town.  The childcare subsidy  to the provider                                                               
is based on the Institute  of Social and Economic Research (ISER)                                                               
formula for  each community.  Right  now, an effort is  being put                                                               
into changing  the regulations  to create  a tiered  system which                                                               
will be  helpful, particularly to  the parents.  For  instance, a                                                               
"four  star" provider  has more  training  and child  development                                                               
education  and  is more  skilled  at  working with  children  and                                                               
helping them develop.                                                                                                           
                                                                                                                                
3:46:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH cited paragraph  two in the fiscal note                                                               
which states:   "Many  of the facts  needed to  determine program                                                               
costs  are unknown,  such as  numbers of  children to  be served,                                                               
amounts of  facility space necessary, location,  staffing levels,                                                               
and  the magnitude  of employee  contributions that  would offset                                                               
program costs."   She said  she is  unhappy with the  fiscal note                                                               
because a  determination cannot be  made as to whether  the state                                                               
can afford  to offer an additional  subsidy.  She asked  what the                                                               
current subsidy is for state employees.                                                                                         
                                                                                                                                
REPRESENTATIVE  KERTTULA agreed  that it  is not  a great  fiscal                                                               
note.   However,  she said,  there  was discussion  in the  prior                                                               
committee that none  of "this" will be allowed unless  there is a                                                               
needs assessment  and unless  the departments  work hand  in hand                                                               
with the DOA.  It would then be  up to the DOA whether to approve                                                               
it, and  if it is cost  prohibitive, the department is  not going                                                               
to allow it.   She said she felt there could  have been much more                                                               
work done in  developing the fiscal note in terms  of looking for                                                               
information from around  the state.  This bill  would allow state                                                               
employees who cannot find childcare  to go to their department to                                                               
see about a  space.  She said  she did not think it  will be cost                                                               
prohibitive but  that instead there will  be better communication                                                               
between  employees  who  have  the  need  and  department  heads.                                                               
Representative  Kerttula  said  she  did  not  know  the  current                                                               
subsidy for  childcare, but  she would  get that  information for                                                               
the committee.                                                                                                                  
                                                                                                                                
3:49:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH   asked  Representative   Kerttula  to                                                               
address the  issue of  subsidized childcare  in a  state facility                                                               
for  legislative session  workers and  the possibility  that that                                                               
could  put other  childcare  providers in  the  community out  of                                                               
business.                                                                                                                       
                                                                                                                                
REPRESENTATIVE KERTTULA said  she is of the belief  that the need                                                               
is so great that this would not  be the case and is certainly not                                                               
her  intent.   The bill  was  specifically changed  to not  allow                                                               
state  employees to  do  the childcare;  it  would be  completely                                                               
private enterprise taking  this over, she advised.   If a private                                                               
provider does  not want  to be involved,  that provider  will not                                                               
come forward.                                                                                                                   
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  asked where the $70  per child subsidy                                                               
mentioned by Representative Roses is coming from.                                                                               
                                                                                                                                
REPRESENTATIVE  KERTTULA responded  that  that  is the  childcare                                                               
assistance for those with low income,  and that she will get that                                                               
information to Representative Fairclough.                                                                                       
                                                                                                                                
REPRESENTATIVE  ROSES added  that  that is  through Medicare  and                                                               
Medicaid, and  was adjusted this year  by about 6 percent  in the                                                               
finance subcommittee.   He  said it  is up to  $70 after  all the                                                               
area  cost-differentials have  been applied,  and is  the highest                                                               
someone will get.                                                                                                               
                                                                                                                                
3:52:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH inquired whether  this means that under                                                               
the Medicare system,  the state is reimbursing 50  percent of the                                                               
cost,  or  whether   all  of  it  is  coming   from  the  federal                                                               
government.                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROSES replied that it is matching funds.                                                                         
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  surmised, then,  that there is  a cost                                                               
to the state associated with that subsidy.                                                                                      
                                                                                                                                
REPRESENTATIVE KERTTULA  said it is  for everyone of  low income,                                                               
not just state employees.                                                                                                       
                                                                                                                                
CHAIR WILSON said  she envisions that what the  bill is proposing                                                               
would  be  used  by  a   department  that  is  having  difficulty                                                               
retaining  employees  and  that   has  a  space  available;  that                                                               
department could  provide the space  free to a  private childcare                                                               
provider and  it would  be a  benefit for  the state  employee to                                                               
have childcare on the spot, and  it would not cost the state much                                                               
money.  Each  department could figure out how to  best enter into                                                               
such an arrangement.                                                                                                            
                                                                                                                                
REPRESENTATIVE  KERTTULA  added that  she  thinks  the DOA  would                                                               
figure out  what the cost  to the state  would be and  would find                                                               
providers who  could reimburse the  state.  She relayed  that she                                                               
has heard  of so many  people having to  leave jobs, or  not take                                                               
jobs, or not be able to  work because of the childcare situation,                                                               
and this bill  is one step towards addressing the  needs of state                                                               
employees.                                                                                                                      
                                                                                                                                
CHAIR WILSON asked whether HB  266 would apply to the legislature                                                               
as well.                                                                                                                        
                                                                                                                                
REPRESENTATIVE KERTTULA  answered yes,  the legislature  would be                                                               
allowed to do childcare as well,  and offered her belief that all                                                               
members of Legislative Council have supported this.                                                                             
                                                                                                                                
3:55:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  requested clarification  regarding whether                                                               
HB 266 would apply to others besides state employees.                                                                           
                                                                                                                                
REPRESENTATIVE KERTTULA  responded that  under HB  266, childcare                                                               
for state employees would be  the primary emphasis, but childcare                                                               
for  other people  could be  available if  a particular  space is                                                               
large enough.  She relayed  that every childcare provider she has                                                               
talked  to feels  that if  state employees  had other  sources of                                                               
childcare, then the  pressure on the rest of  the community would                                                               
be alleviated.                                                                                                                  
                                                                                                                                
REPRESENTATIVE KELLER inquired how  a determination would be made                                                               
regarding which parents [in the  community] could make use of the                                                               
state facility.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  KERTTULA  replied  there  are  currently  working                                                               
models in Juneau and she has  been assured by Joy Lyon of AEYC-SE                                                               
Alaska that  it would not be  difficult to follow those  kinds of                                                               
models, though it  would be something each  department would have                                                               
to work out with the provider  based on its own employees' needs,                                                               
and would be market driven as well.                                                                                             
                                                                                                                                
MS. MORRIS  added that she  spoke with  the director of  the Gold                                                               
Creek facility and  was told that that facility has  a 50 percent                                                               
preference for  federal employees and  then it is  made available                                                               
to others on a first-come-first-served basis.                                                                                   
                                                                                                                                
3:57:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA observed  that under  HB 266  the DOA  has                                                               
flexibility,  and  that  the  provision on  page  2  [lines  3-6]                                                               
requires the  department to first  determine whether it  would be                                                               
competing with  current private childcare  services in  the area.                                                               
She  said  she  therefore  thinks  it is  a  good  idea  to  have                                                               
something like this in place and she supports the bill.                                                                         
                                                                                                                                
CHAIR WILSON  noted that any  department deciding to  spend money                                                               
on a  childcare facility  would have to  come to  the legislature                                                               
and request an appropriation.                                                                                                   
                                                                                                                                
REPRESENTATIVE KERTTULA agreed.                                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON  noted, however, that the  language on page                                                               
1, line 8, says in  part: "the Department of Administration shall                                                               
approve".   He  questioned, therefore,  whether the  word "shall"                                                               
should be changed to "may".                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA  replied that  the  DOA  has a  duty  to                                                               
conduct  a review  and  do  a needs  assessment.    She said  she                                                               
therefore thinks the word "shall"  is necessary because the other                                                               
departments  will  have  determined whether  to  allow  childcare                                                               
services.  In terms of the  review and approval, the DOA is going                                                               
to approve  the service if it  is satisfactory.  Approval  is not                                                               
mandatory,  but  employees can  work  with  their departments  to                                                               
first  see if  there is  space available.   Then  that department                                                               
would work  with the  DOA.   She said she  imagines that  the DOA                                                               
would  not approve  a childcare  center if  the needs  assessment                                                               
doesn't illustrate a  need.  She suggested that  the language [on                                                               
page  1, line  11]  could  be changed  to  say,  "review and  may                                                               
approve requests", since that is certainly the intent.                                                                          
                                                                                                                                
4:03:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  noted that language  on page 2,  lines 25-                                                               
28, says:   "The cost  of child  care services provided  under AS                                                               
39.90.200  - 39.90.290  shall be  offset by  fees charged  to the                                                               
state officers and  employees or other parents who  use the child                                                               
care  services.   The department  may provide  for a  sliding fee                                                               
schedule, with  fees charged on  the basis of  household income."                                                               
He surmised  that the department  could fully offset the  fees if                                                               
it did not want to come before the legislature for funding.                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA argued  that the  legislature reviews  a                                                               
department's budget regardless of whether  things are paid for or                                                               
not,   and   thus   the   legislature   would   have   oversight.                                                               
Furthermore, a department  may want to have  everything offset or                                                               
it may want  to institute a sliding fee schedule.   The desire is                                                               
to give  discretion to the  departments to  be able to  work this                                                               
out with the DOA.                                                                                                               
                                                                                                                                
REPRESENTATIVE KELLER inquired whether  there has been an attempt                                                               
to work this out in salary negotiations as a benefit.                                                                           
                                                                                                                                
REPRESENTATIVE KERTTULA  replied she does not  believe so, though                                                               
a union representative provided testimony in the last committee.                                                                
                                                                                                                                
4:05:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  commented that  HB  266  has more  state                                                               
involvement  than  she had  anticipated,  as  she had  originally                                                               
thought  the bill  was only  going to  allow departments  to make                                                               
space available for a childcare center  to be run.  She cited Ms.                                                               
Morris's  testimony that  the problem  is  a lack  of places  for                                                               
childcare  facilities  rather than  a  lack  of providers.    She                                                               
suggested  it may  be effective  to just  rent state  space to  a                                                               
private childcare  business and  have no other  state involvement                                                               
other than ensuring that the facility is safe.                                                                                  
                                                                                                                                
REPRESENTATIVE KERTTULA answered  that that is what  this bill is                                                               
attempting to  allow.  The  department would set aside  the space                                                               
and then  work with  the DOA,  but after that  it is  pretty much                                                               
turned over to  the private provider.  The bill  makes clear that                                                               
the provider can  charge a sliding scale and it  makes clear that                                                               
the department may  ask to have the building fees  offset, or the                                                               
department may choose not to.                                                                                                   
                                                                                                                                
REPRESENTATIVE  GARDNER surmised  that  parents  would pay  their                                                               
childcare  bill with  whatever subsidy  they  currently get,  and                                                               
there would be little cost to the state.                                                                                        
                                                                                                                                
REPRESENTATIVE  KERTTULA conceded  that the  fiscal note  has not                                                               
proved  helpful,  and noted  that  the  person who  prepared  the                                                               
fiscal note, Mr. Jones, is in the audience.                                                                                     
                                                                                                                                
4:09:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER opined  that if  a childcare  service was                                                               
operated in  the way that's intended,  there would be no  cost to                                                               
the  state for  staffing or  employee contributions.   Also,  the                                                               
number of  children to be  served would be irrelevant  other than                                                               
with regard to how many children can legally be in the space.                                                                   
                                                                                                                                
REPRESENTATIVE  ROSES pointed  out there  could potentially  be a                                                               
cost because, as indicated on  page 2 [lines 21-22] the childcare                                                               
program  could be  located  in  a state-owned  building  or in  a                                                               
privately-owned building  leased by the state.   Therefore, there                                                               
would be  cost to the  state if the  facility is leased,  and the                                                               
anticipation would be that part of  the sliding scale would be to                                                               
offset that cost.                                                                                                               
                                                                                                                                
REPRESENTATIVE KERTTULA agreed.  She  said she thinks that is why                                                               
the fiscal note is indeterminate,  though she has not talked with                                                               
Mr. Jones about that point.                                                                                                     
                                                                                                                                
4:10:49 PM                                                                                                                    
                                                                                                                                
VERN  JONES,  Chief  Procurement  Officer,  Division  of  General                                                               
Services,  Department of  Administration  (DOA),  stated that  he                                                               
prepared  the fiscal  note, and  that  the DOA  does not  support                                                               
HB 266 because  it does not  believe that providing  childcare is                                                               
an appropriate function of state government.                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked Mr. Jones  whether he thinks  it is                                                               
appropriate for  the state  to rent excess  space to  a childcare                                                               
center or  any other kind of  business, like a coffee  shop, that                                                               
might be of benefit to state employees.                                                                                         
                                                                                                                                
MR. JONES acknowledged that such  is currently done in some state                                                               
facilities.   For example, there  is a  credit union in  a Juneau                                                               
facility and a coffee shop in an Anchorage facility.                                                                            
                                                                                                                                
4:12:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA pointed  out that the fiscal  note needs to                                                               
reflect  what  is in  the  bill  regardless  of whether  the  DOA                                                               
supports it,  and that the  bill provides that the  state utilize                                                               
space in  an existing  building on an  availability basis.   What                                                               
cost would there be to just use space, she inquired.                                                                            
                                                                                                                                
REPRESENTATIVE KERTTULA  replied that  there are costs  with risk                                                               
management and overall  insurance costs, so there  might be costs                                                               
to  the  state  for  renting  space.   She  pointed  out  that  a                                                               
provision  to have  state employees  do childcare  work has  been                                                               
stripped from  CSHB 266(STA), so  now the bill just  provides for                                                               
making use  of space or  entering into  a consortium.   She asked                                                               
Mr. Jones if that made any difference in the analysis.                                                                          
                                                                                                                                
MR.  JONES   said  that  when   he  generated  the   fiscal  note                                                               
[specifically  for CSHB  266(STA)],  his  understanding was  that                                                               
there would  be other work  involved aside from  simply providing                                                               
space.    He offered  to  get  a  number  for the  state's  space                                                               
averages.  The department would  have to contract out for experts                                                               
to do  needs assessments because it  does not have staff  who are                                                               
expert in this field, he advised,  and he is unsure of what other                                                               
types of work  would be involved.   There would have to  be a lot                                                               
of analysis and qualification of  providers.  He pointed out that                                                               
when the  state procures leased  space for state offices,  one of                                                               
the specific goals  is to not have any vacancy  because that is a                                                               
waste  of state  funds.   Thus, the  current inventory  of unused                                                               
space is very low and is temporary.                                                                                             
                                                                                                                                
REPRESENTATIVE GARDNER  pointed out that the  paying tenant could                                                               
be a licensed childcare center.                                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON  noted that language  on page 2  [lines 17-                                                               
19]  says  in part,  "In  addition,  centers  may be  located  in                                                               
privately owned  buildings conveniently  located to the  place of                                                               
employment".  He  asked if the intention is that  the state would                                                               
lease  an  additional building  and  make  it available  free  of                                                               
charge to a childcare provider.                                                                                                 
                                                                                                                                
REPRESENTATIVE KERTTULA  said the intent  is that in  those areas                                                               
where there  was absolutely no  state office space,  a consortium                                                               
could  be   entered  into   with  other   state  entities   or  a                                                               
municipality,  and the  childcare provider  could be  required to                                                               
pay  for that  space.   A  municipality or  a  school might  have                                                               
space, for  example.   The state  is leasing  for other  uses and                                                               
purposes, so why not  allow it to do so for  childcare when it is                                                               
cost effective and will not hurt competition.                                                                                   
                                                                                                                                
4:18:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON surmised  that the intent is  that if space                                                               
is not  available, an  agency could  propose to  the DOA  that it                                                               
would  like  to  lease  another building,  or  space  in  another                                                               
building, and that  it may or may not lease  jointly with someone                                                               
else.  That space would then be sublet to a childcare provider.                                                                 
                                                                                                                                
REPRESENTATIVE  KERTTULA   responded  that  that  is   where  the                                                               
childcare provider may or may not  be required to pay it all back                                                               
- that would be up to the state agencies and the DOA.                                                                           
                                                                                                                                
REPRESENTATIVE SEATON  commented that if  a space existed  in the                                                               
community and  the provider could  afford it, the  provider would                                                               
be leasing  that space  and the  state would  not be  involved at                                                               
all.                                                                                                                            
                                                                                                                                
REPRESENTATIVE KERTTULA replied that  the bill allows departments                                                               
the  flexibility  to  work  with   its  employees  and  childcare                                                               
providers.  The state might choose  to give the provider a break,                                                               
or it may not  if it is cost prohibitive.   If a department finds                                                               
it  is   losing  employees  due   to  childcare   pressures,  the                                                               
department may  decide to work  that out with the  employees, and                                                               
that is  what the bill is  really structured to do.   She relayed                                                               
that she would  get language to the committee that  clears up any                                                               
question about departmental authorities.                                                                                        
                                                                                                                                
CHAIR WILSON noted  that the state may want to  look into whether                                                               
it is more cost effective to  give employees raises or to provide                                                               
childcare.    She said  she  is  not  advocating that  the  state                                                               
provide the childcare,  but she is advocating that  when there is                                                               
space, the state  could use that to allow someone  to provide the                                                               
childcare.                                                                                                                      
                                                                                                                                
REPRESENTATIVE KERTTULA reiterated that  the bill originally said                                                               
that a  state employee could  provide the childcare if  there was                                                               
no private  provider available.   However, she added,  she became                                                               
convinced in the last committee  that a private provider would do                                                               
it if the  space issue could be  worked out.  She  said she would                                                               
talk further with the DOA and  individuals to clarify some of the                                                               
language.                                                                                                                       
                                                                                                                                
4:22:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA noted  that for legislators, it  is hard to                                                               
find a  place to stay  in Juneau,  let alone places  for members'                                                               
employees to stay,  let alone for them to  arrange for childcare.                                                               
She said  she thinks it  is a  state responsibility to  work with                                                               
its employees  to make sure  they can continue  to work so  as to                                                               
avoid constantly having  to hire and train new  employees or deal                                                               
with  employees not  being at  work because  they could  not find                                                               
childcare.   While  the  DOA may  not support  HB  266, it's  the                                                               
legislature  sets policy,  she opined,  and this  bill offers  an                                                               
option to the  department that it may not have  thought of before                                                               
but needs  to think about.   If the bill passes  and a department                                                               
does not want to arrange for  childcare, it won't, but it gives a                                                               
state  agency  the ability  to  come  up  with its  own  solution                                                               
quickly.                                                                                                                        
                                                                                                                                
CHAIR  WILSON   pointed  out  that  legislators   have  requested                                                               
childcare service  for themselves, as well.   Legislative Council                                                               
has talked about this quite a  bit because of these requests, she                                                               
relayed, and  the people  that came  to Legislative  Council with                                                               
the request  said they would  be glad to  pay for the  service if                                                               
they could just find a place for their children.                                                                                
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH voiced  her concern  about competition                                                               
with  the  private  sector  through   the  subsidization  of  one                                                               
business  and not  another.   If  it is  not  exclusive to  state                                                               
employees, it  could create a  disparity.  She relayed  that she,                                                               
herself,  was  a stay-at-home  mother  who  did childcare  for  a                                                               
neighbor so  she could stay at  home with her own  children.  She                                                               
noted that  if the state does  not have excess space,  then going                                                               
out to lease that space has a real cost.                                                                                        
                                                                                                                                
REPRESENTATIVE KERTTULA  assured the  committee that there  is no                                                               
intention to  create competition.   She said  she would  take the                                                               
committee's  comments into  consideration and  come back  with an                                                               
improved product.                                                                                                               
                                                                                                                                
[CSHB 266(STA) was held over.]                                                                                                  
                                                                                                                                
HB 403 - APPROP: SCHOLARSHIP FUND                                                                                             
                                                                                                                                
4:28:23 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced that the  final order of business would be                                                               
HOUSE BILL  NO. 403,  "An Act  appropriating $100,000,000  to the                                                               
Alaska  achievers'   scholarship  fund;  and  providing   for  an                                                               
effective date."                                                                                                                
                                                                                                                                
4:28:45 PM                                                                                                                    
                                                                                                                                
CHRISTIAN   GOU-LEONHARDT,   Staff    to   Representative   David                                                               
Guttenberg, Alaska State Legislature,  sponsor, explained that HB
403 is  the funding mechanism  for legislation the  committee has                                                               
already passed out.                                                                                                             
                                                                                                                                
REPRESENTATIVE SEATON  moved to  report HB  403 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
REPRESENTATIVE KELLER  objected.   He said  he will  recommend do                                                               
not  pass because,  in his  perspective, providing  a needs-based                                                               
program instead  of a merit-based  program is  not a wise  use of                                                               
educational funding.   It will  create an  entitlement situation,                                                               
he  predicted, and  suggested that  other criteria  be considered                                                               
for awarding these scholarships.                                                                                                
                                                                                                                                
REPRESENTATIVE KELLER then withdrew his objection.                                                                              
                                                                                                                                
CHAIR WILSON, after ascertaining that there were no further                                                                     
objections, announced that HB 403 was reported from the House                                                                   
Health, Education and Social Services Standing Committee.                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Health, Education and Social Services Standing Committee meeting                                                                
was adjourned at 4:32 p.m.                                                                                                      
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