Legislature(2013 - 2014)CAPITOL 106

03/28/2014 08:00 AM House EDUCATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 233 SEXUAL ABUSE/ASSAULT PREVENTION PROGRAMS TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 93 CHARTER SCHOOLS TELECONFERENCED
Moved CSHB 93(EDC) Out of Committee
                     HB 93-CHARTER SCHOOLS                                                                                  
                                                                                                                                
9:15:59 AM                                                                                                                    
                                                                                                                                
CHAIR GATTIS announced that the  final order of business would be                                                               
HOUSE  BILL  NO.  93,  "An Act  relating  to  the  authorization,                                                               
monitoring,  and operation  of charter  schools." [Version  O was                                                               
before the committee, adopted as a work draft on 3/15/13.]                                                                      
                                                                                                                                
9:17:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO III  moved to  adopt the  proposed committee                                                               
substitute  (CS)  for  HB 93,  Version  R,  labeled  28-LS0354\R,                                                               
Mischel,  3/20/14  as  the  working document.    There  being  no                                                               
objection, Version R was before the committee.                                                                                  
                                                                                                                                
9:18:10 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
9:19:15 AM                                                                                                                    
                                                                                                                                
CRYSTAL KENNEDY, Staff, Representative  Lynn Gattis, Alaska State                                                               
Legislature,  on  behalf  of Representative  Lynn  Gattis,  prime                                                               
sponsor of HB 93, presented  the committee substitute (CS) for HB
93,  Version R,  paraphrasing  from a  prepared statement,  which                                                               
read [original punctuation provided]:                                                                                           
                                                                                                                                
     All  of the  changes made  in this  CS incorporate  the                                                                    
     portion  of  the  Governor's bill,  HB  278,  regarding                                                                    
     charter schools and the  amendments that this committee                                                                    
     made  to HB  278 so  that this  bill now  is the  stand                                                                    
     alone bill  that mirrors the charter  school portion of                                                                    
     the CS to HB 278.                                                                                                          
                                                                                                                                
     The  first section  requires that  a district  make its                                                                    
     decision   to  deny   or  approve   a  charter   school                                                                    
     application within  60 days  of that  application being                                                                    
     submitted.   This section also allows  the Commissioner                                                                    
     of the  Department of  Education and  Early Development                                                                    
     to approve  a charter school that  was initially denied                                                                    
     by a  local district and  provides for the  State Board                                                                    
     of  Education to  become the  operator  of the  charter                                                                    
     school.                                                                                                                    
                                                                                                                                
     The second section lays out  the appeal process through                                                                    
     the Commissioner's office.                                                                                                 
                                                                                                                                
     Section Three is the Committee  amendment on securing a                                                                    
     charter school  right of first  refusal for  leasing of                                                                    
     available space of school  district facilities and that                                                                    
     the district can charge a  reasonable fee that reflects                                                                    
     the true operational costs of that facility.                                                                               
                                                                                                                                
9:20:35 AM                                                                                                                    
                                                                                                                                
MS. KENNEDY, paraphrasing from a prepared statement,                                                                            
continued to read [original punctuation provided]:                                                                              
                                                                                                                                
     Section 4 limits the amount  that a district can charge                                                                    
     in indirect cost fees to  4% and includes language that                                                                    
     state  funding that  is  generated  for special  needs,                                                                    
     vocational and  technical instruction  and construction                                                                    
     or  major maintenance  should be  part  of the  funding                                                                    
     directed to charter schools.                                                                                               
                                                                                                                                
     Section  5  requires  that school  districts  formulate                                                                    
     policies  and thoughtfully  address the  transportation                                                                    
     challenges   of   their    charter   school   students.                                                                    
     Districts   would   be    charged   with   coordinating                                                                    
     transportation  routes and  transportation availability                                                                    
     as best  they can  within their  current transportation                                                                    
     plan   to  provide   transportation   where  and   when                                                                    
     feasible.  If  not, the districts will  have to forfeit                                                                    
     the portion of their  transportation funds generated by                                                                    
     the  number of  students attending  the charter  school                                                                    
     and hand  that money  over to the  charter school.   It                                                                    
     does not  require the district to  specifically provide                                                                    
     transportation for  students but they do  have to allow                                                                    
     charter  school students  to take  advantage of  normal                                                                    
     bus routes whenever reasonably possible.                                                                                   
                                                                                                                                
     Section  6  addresses  bonding  by  a  municipality  or                                                                    
     borough   for   construction,   additions   and   major                                                                    
     rehabilitation  projects  for  charter schools.    This                                                                    
     will allow  for a 70%  debt reimbursement of  bonds for                                                                    
     charter school projects.                                                                                                   
                                                                                                                                
9:22:00 AM                                                                                                                    
                                                                                                                                
MS. KENNEDY, paraphrasing from a prepared statement,                                                                            
continued to read [original punctuation provided]:                                                                              
                                                                                                                                
     Section  7 decreases  the  minimum  number of  students                                                                    
     required  for  establishing  the  funding  rate  for  a                                                                    
        charter school within its first three years, and                                                                        
      allowing the adjusted student count to be counted at                                                                      
     the same rate as for 150 students.                                                                                         
                                                                                                                                
        Section 8 speaks of the repeal of the HSGQE and                                                                         
     Section [9] provides for an effective date of Sept. 1,                                                                     
     2014.                                                                                                                      
                                                                                                                                
CHAIR GATTIS, in response to a question, reminded members                                                                       
that the committee is working from Version R.                                                                                   
                                                                                                                                
9:23:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  III added clarification that  Section 8 will                                                               
repeal the sunset  for the charter school  facilities program and                                                               
not the HSGQE [Section 3, ch. 91, SLA 2010].                                                                                    
                                                                                                                                
MS. KENNEDY offered to provide the information.                                                                                 
                                                                                                                                
9:24:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON referred  to page 9, line 21  of Version R,                                                               
to paragraph  (18) relating to  the 70 percent  reimbursement for                                                               
schools.   He  expressed  concern from  two  districts that  this                                                               
language creates  a differential between the  alternative schools                                                               
and  the charter  schools since  the charter  schools can  obtain                                                               
bond  reimbursement  rates  at  a higher  rate.    Under  certain                                                               
circumstances, alternative  schools may  need to be  eligible for                                                               
the same bond reimbursement rate as charter schools.                                                                            
                                                                                                                                
CHAIR GATTIS asked Representative Kito III to respond.                                                                          
                                                                                                                                
9:26:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  III clarified the  issue he had  intended to                                                               
address  is that  charter  schools are  often  located in  leased                                                               
facilities,  but alternative  schools  are  typically located  in                                                               
district  facilities.     The  amendment   for  the   70  percent                                                               
[reimbursement of  payments on tax-exempt bond]  provision was to                                                               
allow  for  a  pathway  to   charter  schools  to  be  built  and                                                               
incorporated  as  a  district facility  to  avoid  onerous  lease                                                               
costs.                                                                                                                          
                                                                                                                                
CHAIR GATTIS agreed and said  in her district the charter schools                                                               
are in leased buildings.                                                                                                        
                                                                                                                                
REPRESENTATIVE  SEATON acknowledged  that  he  had supported  the                                                               
amendment.   He pointed  out that  alternative schools  are often                                                               
focused on  recapturing student attendance and  are separate from                                                               
charter schools.   If a school  district chose to bond  and build                                                               
an  alternative school  the bonding  would be  at the  60 percent                                                               
reimbursement level  and not the 70  percent reimbursement ratio.                                                               
A specialized  mission may  need to be  defined to  include other                                                               
alternative facilities, along  with charter schools.   It was not                                                               
considered previously.                                                                                                          
                                                                                                                                
CHAIR GATTIS  disagreed, and  said the  Matanuska-Susitna Borough                                                               
School District's  (MSBSDs) alternative school,  Valley Pathways,                                                               
is being built and bonded under the 70:30 bonding structure.                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON acknowledged  that the  MSBSD is  the only                                                               
area that  is expanding  and allowed to  operate under  the 70:30                                                               
percent bonding structure but no  other district would be able to                                                               
obtain that bond structure.                                                                                                     
                                                                                                                                
9:30:37 AM                                                                                                                    
                                                                                                                                
CHAIR GATTIS  stated her understanding that  schools could obtain                                                               
the 70:30 bonding structure if  the charter school had sufficient                                                               
students, but  if not, one  option would be to  offer alternative                                                               
school,  but it  wouldn't be  eligible for  the reimbursement  at                                                               
70:30.                                                                                                                          
                                                                                                                                
9:31:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SADDLER   suggested   this   measure   will   be                                                               
appropriate, particularly  if districts  are shrinking  and space                                                               
is becoming available in the current facilities.                                                                                
                                                                                                                                
9:31:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  III reiterated  the difference is  that many                                                               
charter  schools are  leasing  existing space.    He offered  his                                                               
belief that with declining enrollment  the school could still use                                                               
the  70:30   bonding  reimbursement  provision  to   renovate  an                                                               
existing building to accommodate an  alternative program.  If the                                                               
school  is  overbuilt  for  the   district,  the  charter  school                                                               
wouldn't qualify  to build a  small alternative school  using the                                                               
70:30 bonding;  however, the bill  was written to  assist charter                                                               
schools  paying  lease  payments  to  be  placed  in  a  district                                                               
facility.                                                                                                                       
                                                                                                                                
9:32:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  agreed  with  the goal  to  equalize  the                                                               
opportunity   for   charter   schools.      However,   it   might                                                               
disenfranchise  some alternative  schools who  can't qualify  for                                                               
the reimbursement  at 70 percent,  except in some  districts such                                                               
as  the MSBSD,  since the  overall  vacancy space  in a  district                                                               
might be due to vacancies in a number of communities.                                                                           
                                                                                                                                
9:34:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  turned  to the  charter school  denial                                                               
process in  Section 1 that  allows the Alaska State  School Board                                                               
to authorize  and become the school  board for that school.   She                                                               
suggested  that statute  would need  to be  amended to  allow for                                                               
that action.                                                                                                                    
                                                                                                                                
9:35:50 AM                                                                                                                    
                                                                                                                                
MS. KENNEDY  offered her  belief that she  might be  referring to                                                               
page 2, line 17, of HB 93, Version R. which read:                                                                               
                                                                                                                                
     (f)   Except as  provided in (g)  of this  section, the                                                                    
     state  board shall  operate a  charter school  that has                                                                    
     been approved by the state  board on appeal of a denial                                                                    
     of the charter school  applications by the local school                                                                    
     board  under  the  laws  governing  the  operation  and                                                                    
     maintenance of a charter school,  as if the state board                                                                    
     were a school district.                                                                                                    
                                                                                                                                
9:37:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  asked  whether AS  14.03.255 has  been                                                               
amended since it doesn't currently allow them to operate.                                                                       
                                                                                                                                
MS. KENNEDY deferred to the EED to answer.                                                                                      
                                                                                                                                
CHAIR GATTIS preferred to hold the question.                                                                                    
                                                                                                                                
9:37:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO  III said  EED  operates  the Mt.  Edgecombe                                                               
boarding school as a public  school.  In addition, the department                                                               
has  the ability  to take  over  operations of  schools that  are                                                               
underperforming.   He  indicated the  department could  expand on                                                               
this but  he believed the  department has the ability  to operate                                                               
as a school.                                                                                                                    
                                                                                                                                
9:38:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON referred  to proposed Sec. 7, [beginning                                                               
on page 9, line  31 through page 10, line 2  of Version R], which                                                               
read, "(d) If  a charter school has a student  count of more than                                                               
74 [120]  but less than  150 for the current  year and is  in the                                                           
first three years  [YEAR] of operation or had a  student count of                                                           
at least  75 [150 OR MORE]  in the previous year  of operation,".                                                           
She interpreted  this to mean  the school  could use a  count for                                                               
three years  if under 75 students.   She explained that  in small                                                               
districts it  is difficult  to begin a  charter school  given the                                                               
demographics of the classroom such  that some K-6 charter schools                                                               
wouldn't  ever be  able to  reach  150 students.   She  suggested                                                               
reducing  the  figures  to  allow   smaller  charter  schools  to                                                               
operate.                                                                                                                        
                                                                                                                                
9:40:04 AM                                                                                                                    
                                                                                                                                
CHAIR  GATTIS restated  the  question is  whether  to change  the                                                               
count that  a charter  school needs  to a  lower number  than the                                                               
bill  indicates.   Although she  didn't object,  she acknowledged                                                               
that there are usually financial implications.                                                                                  
                                                                                                                                
REPRESENTATIVE  KITO   III  deferred   to  the   department,  but                                                               
expressed  concern that  the operating  cost for  charter schools                                                               
being established  with too  few students  would be  excessive in                                                               
comparison to the  number of students being served.   Further, it                                                               
would be difficult  to operate with the amount  of money received                                                               
in the  BSA although he was  unsure of the dividing  line for the                                                               
minimum number of students.                                                                                                     
                                                                                                                                
CHAIR GATTIS  remarked that if  a school can't afford  to operate                                                               
it may be self-limiting.                                                                                                        
                                                                                                                                
9:41:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  related  the   effect  that  changes  for                                                               
charter  school  size  has  had on  the  Kenai  Peninsula  School                                                               
District  (KPSD).    In  one instance,  the  district  needed  to                                                               
transfer  $200,000 more  per  year than  anticipated  due to  the                                                               
small  size of  the charter  school, which  is less  efficient to                                                               
operate.   He  said that  reducing the  size means  the districts                                                               
will face more per student costs due to the inefficiencies.                                                                     
                                                                                                                                
The committee took an at-ease from 9:41 a.m. to 9:49 a.m.                                                                       
                                                                                                                                
9:49:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON moved to adopt  Conceptual Amendment 1,                                                               
on page 10, line 1, to  delete "three years" [YEAR] of operation"                                                           
and to  delete "150"  and replace  it with "75."   She  said this                                                               
would assist small charter schools working to grow to K-6.                                                                      
                                                                                                                                
CHAIR GATTIS objected for discussion purposes.                                                                                  
                                                                                                                                
9:50:55 AM                                                                                                                    
                                                                                                                                
SUSAN   MCCAULEY,  Director,   Teaching  and   Learning  Support,                                                               
Department  of Education  and Early  Development (EED),  answered                                                               
that  this is  not her  area  of expertise,  but it  is a  school                                                               
finance consideration  with a potential fiscal  note implication.                                                               
She understood the intent of  Conceptual Amendment 1, to remove a                                                               
potential barrier that  charter schools face.   She reported that                                                               
four  charter   schools  have  been   operating  under   the  150                                                               
attendance  requirement  that  affect  the districts.    She  was                                                               
unsure of the fiscal implications of the Conceptual Amendment 1.                                                                
                                                                                                                                
9:52:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO III  stated he was also unsure  of the fiscal                                                               
impact.  He  offered that the fiscal formulas  being impacted are                                                               
shown  in AS  14.17.440.   He said  that student  population base                                                               
numbers between  75 and 150 equals  a base amount of  $122.85 and                                                               
with  student size  range of  150-250,  that the  base amount  is                                                               
$218.00.                                                                                                                        
                                                                                                                                
9:53:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON asked  for ramifications  to Conceptual                                                               
Amendment 1 that would change  the number of students required in                                                               
a  charter  school  from  150  to 75  since  the  smaller  school                                                               
districts have difficulty reaching 150.                                                                                         
                                                                                                                                
9:54:47 AM                                                                                                                    
                                                                                                                                
ELIZABETH   SWEENEY  NUDELMAN,   Director,  School   Finance  and                                                               
Facilities   Section,   Department   of   Education   and   Early                                                               
Development  (EED), stated  her understanding  the average  daily                                                               
membership  of 75  is for  charter schools  to receive  increased                                                               
funding and have an opportunity to grow.                                                                                        
                                                                                                                                
9:56:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON clarified that  it would be  limited to                                                               
the first three years of operation.                                                                                             
                                                                                                                                
MS.  NUDELMAN read,"  ...  in  the first  three  years  or had  a                                                           
student count of  at least 75 [150 OR MORE]  in the previous year                                                           
of  operation.   She  related  her  understanding that  once  the                                                               
charter school attains  and maintains a student count  of 75, the                                                               
charter school would  be funded at a higher  level than currently                                                               
established in law.                                                                                                             
                                                                                                                                
9:57:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON withdrew Conceptual Amendment 1.                                                                       
                                                                                                                                
9:57:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX   asked  whether   funds  would   be  made                                                               
available  if the  founders intentionally  want to  have a  small                                                               
school.                                                                                                                         
                                                                                                                                
MS. NUDELMAN answered  yes; that charter schools of  any size are                                                               
supported  through a  number of  opportunities allowed  under the                                                               
funding chart.   The lowest funding for the  charter school would                                                               
be an  increase of 1.18  per average daily membership  (ADM), she                                                               
said.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  whether a  charter school  of 25-50                                                               
could exist.                                                                                                                    
                                                                                                                                
MS. NUDELMAN answered yes; that the  formula for the ADM would be                                                               
adjusted by  a 1.18 increment.   She acknowledged  some practical                                                               
considerations would come into play.                                                                                            
                                                                                                                                
9:59:30 AM                                                                                                                    
                                                                                                                                
CHAIR GATTIS closed public testimony on HB 93.                                                                                  
                                                                                                                                
10:00:17 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE REINBOLD  moved to adopt [Conceptual]  Amendment 2                                                               
to change  the effective date from  September 1, 2014 to  July 1,                                                               
2014.                                                                                                                           
                                                                                                                                
REPRESENTATIVE P. WILSON objected for discussion.                                                                               
                                                                                                                                
10:01:18 AM                                                                                                                   
                                                                                                                                
MS. KENNEDY explained that [Conceptual]  Amendment 2 is necessary                                                               
since certain dates  work better for school districts.   It would                                                               
align the  district with  the budget  year on July  1 of  a given                                                               
year  instead of  September  1,  2014, since  at  that point  the                                                               
school year would already have started.                                                                                         
                                                                                                                                
10:02:12 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE P.  WILSON asked whether [Conceptual]  Amendment 2                                                               
would  allow the  department much  time to  write regulations  to                                                               
comply with  statute.  She referred  to page 10, line  19, to the                                                               
effective date clause.                                                                                                          
                                                                                                                                
MS. KENNEDY  referred to language  on page 10, proposed  Sec. 10,                                                               
which  read, "This  Act takes  affect  September 1,  2014."   The                                                               
proposed Amendment 2  would change the effective date  to July 1,                                                               
2014.                                                                                                                           
                                                                                                                                
10:03:28 AM                                                                                                                   
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
CHAIR GATTIS acknowledged concerns were raised on the date.                                                                     
                                                                                                                                
10:05:56 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE REINBOLD moved  to withdraw [Conceptual] Amendment                                                               
2.                                                                                                                              
                                                                                                                                
REPRESENTATIVE  SEATON  objected  for discussion  purposes.    He                                                               
asked whether  the change  is an application  to the  formula and                                                               
may not require separate regulations.                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON withdrew his objection.                                                                                   
                                                                                                                                
There being  no further objection,  [Conceptual] Amendment  2 was                                                               
withdrawn.                                                                                                                      
                                                                                                                                
10:07:30 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE REINBOLD moved to report  HB 93, Version R, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.    There  being no  objection,  CSHB  93(EDC)  was                                                               
reported from the House Education Standing Committee.                                                                           

Document Name Date/Time Subjects
H B 233 Sponsor Statement V A.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
H B 233 Sectional Analysis V A.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
H B 233 Transforming Communities to Prevent Child Sexual Abuse 2-17-14.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
H B 233Child Sexual Abuse in the Bering Strait Region 2-17-14.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
H B 233 warning_signs_child_behaviors 2-17-14.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
HB 233 - Letter of Support - ANDVSA.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
H B 233 NBER-Does Child Maltreatment Lead to Crime 2-17-14.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
fiscalNote.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
H B 233 Letters of Support 2-17-14.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
H B 233 Leg Research OCS Statistics 2-17-14.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
H B 233 Health_Impact_on_Youth 2-17-14.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
H B 233 FNs from KSMEMIMNMONYTX 2-17-14.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
H B 233 Erin's Law Map 2-17-14.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
H B 233 5 STEPS BOOKLET 2-17-14.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
HB233 Supporting Document-Letter McGee.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
HB233 Supporting Document-Letter Mazur.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
HB233 Supporting Document-Letter Kenning.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
HB 233 Supporting Document-Letters Smith Gerlock.pdf HEDC 3/28/2014 8:00:00 AM
HB 233
CS for HB93 (R).pdf HEDC 3/28/2014 8:00:00 AM
HB 93
Sponsor Statement CSHB93-signed.pdf HEDC 3/28/2014 8:00:00 AM
HB 93