Legislature(2021 - 2022)DAVIS 106

03/16/2022 08:00 AM House EDUCATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 173 SCHOOL CLIMATE & CONNECTEDNESS TELECONFERENCED
Scheduled but Not Heard
+= HB 335 RAMPART SCHOOL: YUKON-KOYUKUK DISTRICT TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 108 CONCURRENT SECONDARY & TRADE SCHOOL TELECONFERENCED
Heard & Held
+= HB 48 AK PERFORMANCE SCHOLARSHIP; ELIGIBILITY TELECONFERENCED
Moved CSSSHB 48 Out of Committee
+= HB 350 SCHOOL BOND DEBT REIMBURSEMENT TELECONFERENCED
Scheduled but Not Heard
+ SB 198 RAMPART SCHOOL: YUKON-KOYUKUK DISTRICT TELECONFERENCED
Moved SB 198 Out of Committee
<Companion Bill to HB 335>
         HB 48-AK PERFORMANCE SCHOLARSHIP; ELIGIBILITY                                                                      
                                                                                                                                
[Contains discussion of HB 108.]                                                                                                
                                                                                                                                
9:02:15 AM                                                                                                                    
                                                                                                                                
CO-CHAIR STORY  announced that the  next order of  business would                                                               
be SPONSOR SUBSTITUTE FOR HOUSE BILL  NO. 48, "An Act relating to                                                               
the Alaska performance scholarship program."                                                                                    
                                                                                                                                
CO-CHAIR STORY passed the gavel to Co-Chair Drummond.                                                                           
                                                                                                                                
9:02:38 AM                                                                                                                    
                                                                                                                                
CO-CHAIR DRUMMOND noted that public  testimony had been left open                                                               
from a  previous hearing,  and, after  ascertaining there  was no                                                               
one who  wished to testify,  she closed public testimony  on SSHB
48.                                                                                                                             
                                                                                                                                
9:03:34 AM                                                                                                                    
                                                                                                                                
CO-CHAIR STORY,  as prime sponsor  of SSHB 48, provided  a review                                                               
of the legislation.   She stated that the  legislation would make                                                               
the Alaska  Performance Scholarship (APS) available  to more high                                                               
school students,  helping to meet  the state's goal  of retaining                                                               
young talent  in its  workforce.  She  stated that  the amendment                                                               
before  the committee  is the  result of  recommendations from  a                                                               
program  review which  occurs  every ten  years  by the  McKinley                                                               
Research Group.   She  stated that the  suggested changes  are as                                                               
follows:  create  courses  for career  and  technical  education;                                                               
remove college  entry exams; increase  award amounts;  extend the                                                               
scholarship  to   eight  years;   and  give  juniors   access  to                                                               
information to keep them on track to receive scholarships.                                                                      
                                                                                                                                
CO-CHAIR  DRUMMOND noted  that  the  Higher Education  Investment                                                               
Fund  does not  exist at  this  time.   She stated  that this  is                                                               
difficult  for   students,  as   this  fund's   investments  have                                                               
generated the money for their  scholarships.  She stated that the                                                               
committee  needs to  move forward  and be  prepared, as  there is                                                               
another bill in another process  which seeks to recapitalize that                                                               
fund.                                                                                                                           
                                                                                                                                
9:06:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOPKINS  moved to  adopt Amendment 1,  labeled 32-                                                               
LS0315\G.1, Marx, 3/9/2022, which read as follows:                                                                              
                                                                                                                                
     Page 1, line 7:                                                                                                            
          Delete "six"                                                                                                          
          Insert "12 [SIX]"                                                                                                 
                                                                                                                                
     Page 1, line 9, following "completed":                                                                                     
          Insert "or is enrolled in"                                                                                            
                                                                                                                                
     Page 2, line 9, following "language;":                                                                                 
          Insert "and"                                                                                                      
                                                                                                                                
     Page 2, lines 10 - 20:                                                                                                     
          Delete all material and insert:                                                                                       
               "(4)  has a minimum grade-point average in                                                                       
     high school of 2.5 or  higher; the department shall set                                                                    
     by   regulation  minimum   requirements   based  on   a                                                                    
     substantially  similar standard  for districts  that do                                                                    
     not assign grades [;                                                                                                       
               (5)  HAS ACHIEVED A MINIMUM SCORE ON A                                                                           
               (A)  COLLEGE ENTRANCE EXAMINATION; OR                                                                            
               (B)  STANDARDIZED EXAMINATION DESIGNED TO                                                                        
     MEASURE A  STUDENT'S LEVEL OF PREPAREDNESS  TO MAKE THE                                                                    
     TRANSITION TO WORK, AS SELECTED BY THE DEPARTMENT; AND                                                                     
               (6)  IS ENROLLED IN GOOD STANDING IN A                                                                           
     COURSE   OF   STUDY   AT  A   QUALIFIED   POSTSECONDARY                                                                    
     INSTITUTION IN  THIS STATE THAT  IS INTENDED  TO RESULT                                                                    
     IN THE AWARD OF A CERTIFICATE OR DEGREE]."                                                                                 
                                                                                                                                
     Page 2, line 26:                                                                                                           
          Delete "a new subsection"                                                                                             
          Insert "new subsections"                                                                                              
                                                                                                                                
     Page 2, following line 30:                                                                                                 
          Insert new subsections to read:                                                                                       
          "(i)  Not later than September 30 of each year,                                                                       
     the commission  shall notify  each applicant  awarded a                                                                    
     scholarship  under   (a)  of  this  section   that  the                                                                    
     applicant  has  been   awarded  an  Alaska  performance                                                                    
     scholarship. The notice must                                                                                               
               (1)  identify the Alaska performance                                                                             
     scholarship    level    awarded   as    described    in                                                                    
     AS 14.43.825(a); and                                                                                                       
               (2)  inform the applicant that                                                                                   
               (A)  the commission may disburse the award                                                                       
     only if the applicant  meets the requirements described                                                                    
     in (k) of this section; and                                                                                                
               (B)  the commission will adjust the                                                                              
     applicant's award under  the circumstances described in                                                                    
     (j) of this section.                                                                                                       
          (j)  If, at the time an applicant awarded an                                                                          
     Alaska  performance  scholarship  graduates  from  high                                                                    
     school,  the  applicant's grade-point  average  differs                                                                    
     from the  grade-point average  on which  the commission                                                                    
     based  the  applicant's  award,  the  commission  shall                                                                    
     adjust  the applicant's  award in  accordance with  the                                                                    
     applicable   Alaska   performance   scholarship   level                                                                    
     described in AS 14.43.825(a).                                                                                              
          (k)  Notwithstanding (a) of this section, and                                                                         
     except  as  provided  in  (c)   of  this  section,  the                                                                    
     commission   may   disburse   an   Alaska   performance                                                                    
     scholarship awarded to an  applicant under this section                                                                    
     only if the applicant                                                                                                      
               (1)  has, at the time of the applicant's                                                                         
     graduation from high school,                                                                                               
               (A)  completed the core academic curriculum                                                                      
     of high school level coursework described in (a)(3) of                                                                     
     this section; and                                                                                                          
               (B)  met the minimum grade-point average in                                                                      
     high school described in (a)(4) of this section; and                                                                       
               (2)  is enrolled in good standing in a                                                                           
          course of study at a qualified postsecondary                                                                          
      institution in this state that is intended to result                                                                      
     in the award of a certificate or degree."                                                                                  
                                                                                                                                
9:06:30 AM                                                                                                                    
                                                                                                                                
CO-CHAIR DRUMMOND objected for the purpose of discussion.                                                                       
                                                                                                                                
REPRESENTATIVE HOPKINS  stated that  the amendment is  by request                                                               
of the  bill sponsor and  the result of recommendations  from the                                                               
McKinley  Research Group.   He  stated that  the amendment  would                                                               
move up  the date of  issuance of  APS and would  inform students                                                               
sooner of their  qualification status for the  scholarship.  This                                                               
would allow  the students to  know which financial  package would                                                               
be available to them before choosing postsecondary education.                                                                   
                                                                                                                                
CO-CHAIR  STORY  added that  currently  students  would not  know                                                               
until the  end of  their senior  year if  they would  receive the                                                               
scholarship.   She  stated that  this change  would also  prevent                                                               
students from  discovering, after  the fact,  they had  not taken                                                               
the correct  curriculum to receive  the award.  With  this change                                                               
students would  be able to  adjust their classes in  their senior                                                               
year and  maintain their  grade point average  (GPA) to  meet the                                                               
criteria.   She  stated that  this would  allow students  to make                                                               
decisions earlier about postsecondary education.                                                                                
                                                                                                                                
9:10:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GILLHAM, reflecting on  HB 108, suggested that the                                                               
APS  issuance date  could  be moved  up even  more,  so then  the                                                               
funding would be  put towards CTE in high school.   The students'                                                               
records could  be reviewed in the  sixth to eighth grades  to see                                                               
if they qualify for the  scholarship.  He conjectured that making                                                               
the scholarship  program eligibly  even sooner, the  fiscal notes                                                               
for HB 108 could be dropped.                                                                                                    
                                                                                                                                
9:11:39 AM                                                                                                                    
                                                                                                                                
CO-CHAIR STORY  indicated that APS requires  a strict curriculum,                                                               
so this would  require a discussion to determine how  [HB 108 and                                                               
SSHB 48] would fit together.   She stated that the APS program is                                                               
very prescriptive,  but it does  allow students to take  some CTE                                                               
classes.  She said that students  could use the scholarship to go                                                               
towards  technical  programs,  and,  as  HB  108  adds  the  work                                                               
experience  with the  training, [the  two pieces  of legislation]                                                               
could complement each other.                                                                                                    
                                                                                                                                
9:12:47 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  DRUMMOND  expressed  the  opinion  that  Representative                                                               
Gillham's idea  is "brilliant."   She added that APS  is designed                                                               
for high school,  but to begin in middle school  would be a great                                                               
idea.   She  expressed the  belief that  students tend  to decide                                                               
what they  want to  do around  third grade.   She  referenced the                                                               
Alaska Native  Science and Engineering Program  at the University                                                               
of Alaska.   She stated that the [accelerated]  program brings in                                                               
high school  students from rural communities,  who often graduate                                                               
as engineers  with dual credits  and more.   She stated  that the                                                               
professor  working  with  the program  learned  that,  to  excite                                                               
students and start them in the  right classes, they would need to                                                               
begin in the  sixth grade.  She stated that  this type of program                                                               
could be adapted  for career technology.  She noted  that, at the                                                               
governor's  request, the  bill would  have  a substantial  fiscal                                                               
note of $7.15 million.  She stated  that now APS is coming out of                                                               
the general fund,  and it is not earning interest.   She asserted                                                               
that,  because there  was no  reverse sweep,  the fund  now earns                                                               
around 1 to  2 percent compared with historical earnings  of 8 to                                                               
12  percent.   Referencing  the  fiscal note  and  the Office  of                                                               
Management  and  Budget  component  2990,  she  stated  that  the                                                               
legislation   would  call   for   $15.2  million   per  year   in                                                               
scholarships in the out years.   This amount reflects an increase                                                               
in  the  size of  the  award  to  match  tuition rates  in  state                                                               
schools.   She  stated  that [Representative  Gillham's idea]  is                                                               
worth  discussing,  but  it would  require  restructuring  middle                                                               
schools around the state.                                                                                                       
                                                                                                                                
9:15:45 AM                                                                                                                    
                                                                                                                                
CO-CHAIR STORY  interjected that,  as of mid-January,  the Higher                                                               
Education Investment  Fund had not  been liquidated and  is still                                                               
earning  higher interest  rates.   She  expressed  hope that  the                                                               
legislature  would keep  the fund  intact and  put the  estimated                                                               
$400 million  back.   She stated that  the Department  of Revenue                                                               
has  delayed  the liquidation  of  the  fund because  the  fund's                                                               
return was  around 38  percent last  year.   She stated  that the                                                               
fund would  pay for the  entire fiscal note  that is in  front of                                                               
the  committee  and  has  been self-supporting  APS.    Based  on                                                               
recommendations  of   the  Alaska  Commission   on  Postsecondary                                                               
Education,  a $7,000  scholarship award  [per student,  per year]                                                               
would  be a  self-sustaining amount.    She said,  if the  Higher                                                               
Education Investment  Fund has  not been  swept yet,  funding for                                                               
several programs would not have to  come out of the general fund.                                                               
She stated that Representative Josephson  is sponsoring a bill to                                                               
clarify that  the House of  Representatives and the  Senate would                                                               
both be in support of retaining the fund.                                                                                       
                                                                                                                                
9:17:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GILLHAM,  alluding to Co-Chair  Drummond's earlier                                                               
comment, stated that the state has  an excess to spend this year,                                                               
but he  is more  interested in funding  the state's  workforce 10                                                               
years from  now.  He  suggested that creating interest  in middle                                                               
school would lead  students to be involved with a  CTE program by                                                               
the ninth grade.   He stated that a constituent  has expressed to                                                               
him that CTE  is needed because youth are  learning computers but                                                               
cannot build an outhouse.                                                                                                       
                                                                                                                                
CO-CHAIR  STORY stated  that students  would get  credit for  CTE                                                               
classes as  part of APS.   She added that  a study by  the Alaska                                                               
Commission  on Postsecondary  Education shows  that students  who                                                               
receive APS have higher completion rates  and tend to stay in the                                                               
state for  careers, of  which is  the goal of  the program.   She                                                               
expressed hope  that the Higher  Education Investment  Fund would                                                               
be put  into law,  retaining a future  funding mechanism  for the                                                               
program.                                                                                                                        
                                                                                                                                
CO-CHAIR DRUMMOND  stated that,  in addition  to APS,  the Higher                                                               
Education Investment  Fund has provided  about $8 million  a year                                                               
for the Alaska  Education Grant program.  She  explained that APS                                                               
is a performance-based [scholarship],  while the Alaska Education                                                               
Grant  program is  a needs-based  [grant].   She  added that  the                                                               
grant  can  be  used  anywhere in  the  state  for  postsecondary                                                               
instruction in  any field, including hair  technology, carpentry,                                                               
and  university courses.    She said  that  the Alaska  Education                                                               
Grant program now pulls from the general fund.                                                                                  
                                                                                                                                
9:21:56 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  STORY   responded  to  Representative  Prax   that  the                                                               
[University  of Alaska]  would receive  the scholarship  money as                                                               
long as  the student was  enrolled in  classes.  She  stated that                                                               
the scholarship's  availability for  students would  be increased                                                               
to  eight  years  because the  McKinley  Research  Group's  study                                                               
related that  nontraditional students  in Alaska  tend to  take a                                                               
gap year to  work and then resume classes.   It was conveyed that                                                               
Representative  Prax's   comments  were   not  speaking   to  the                                                               
amendment and would be deferred.                                                                                                
                                                                                                                                
9:23:37 AM                                                                                                                    
                                                                                                                                
CO-CHAIR DRUMMOND withdrew  her objection to the  motion to adopt                                                               
Amendment 1.   There being no further objection,  Amendment 1 was                                                               
adopted.                                                                                                                        
                                                                                                                                
9:24:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   PRAX  expressed   the  understanding   that  the                                                               
legislation  would  extend   the  scholarship  eligibility  eight                                                               
years.   He voiced the concern  that this would create  a greater                                                               
risk for students to change their mind and not graduate.                                                                        
                                                                                                                                
CO-CHAIR STORY  responded that the  extension would not  be eight                                                               
years, but eight  total semesters, and the student  would have to                                                               
be on track  to use the award.   She offered that  there would be                                                               
safeguards in  the bill, and a  student would have to  maintain a                                                               
certain GPA and take a required number of credits per semester.                                                                 
                                                                                                                                
REPRESENTATIVE PRAX suggested  that if a student  enrolled in the                                                               
university  with no  career  direction and  did  not finish,  the                                                               
scholarship  would have  been wasted.   He  questioned whether  a                                                               
student would have  to pay back the money if  the student dropped                                                               
out after two years.                                                                                                            
                                                                                                                                
CO-CHAIR  STORY responded  that  scholarship money  would not  be                                                               
paid back.  She stated  the belief that whatever education people                                                               
receive serves them well.                                                                                                       
                                                                                                                                
9:27:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRONK expressed  appreciation for  the extension.                                                               
He commented  that there are  "bumps" in life, so  the eight-year                                                               
extension  is  understandable.    He  questioned  whether,  if  a                                                               
student  waits five  years  before  attending university,  he/she                                                               
would have only three years to use the scholarship.                                                                             
                                                                                                                                
CO-CHAIR STORY  stated that the  student would have  eight years,                                                               
and if his/her  education extended to one more  year, the student                                                               
may have to pay more of the tuition.                                                                                            
                                                                                                                                
9:28:34 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 9:28 a.m. to 9:32 a.m.                                                                       
                                                                                                                                
9:32:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ZULKOSKY moved to report  SSHB 48, as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal notes.   There  being  no objection,  CSSSHB
48(EDC)  was  reported  out  of   the  House  Education  Standing                                                               
Committee.                                                                                                                      

Document Name Date/Time Subjects
HB 48 FN ACPE, Admin Op.pdf HEDC 3/16/2022 8:00:00 AM
HB 48
HB 48 FN AEG.pdf HEDC 3/16/2022 8:00:00 AM
HB 48
HB 48 FN APS Awards.pdf HEDC 3/16/2022 8:00:00 AM
HB 48
HB 147 Invited Testimony - Arnaucuaq.pdf HEDC 3/16/2022 8:00:00 AM
HB 147
HB 48 FN Ed Support and Admin.pdf HEDC 3/16/2022 8:00:00 AM
HB 48
HB 147 Invited Testimony - Hankins, LKSD.pdf HEDC 3/16/2022 8:00:00 AM
HB 147
HB 350 Sponsor Statement Ver. 2.pdf HEDC 3/16/2022 8:00:00 AM
HB 350
HB 312 support 031522.pdf HEDC 3/16/2022 8:00:00 AM
HL&C 4/4/2022 3:15:00 PM
HB 312