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
Scheduled but Not Heard
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
Heard & Held
Moved CSSSHB 48 Out of Committee
Scheduled but Not Heard
Moved SB 198 Out of Committee
<Companion Bill to HB 335>
           HB 108-CONCURRENT SECONDARY & TRADE SCHOOL                                                                       
8:10:04 AM                                                                                                                    
CO-CHAIR STORY announced  that the first order  of business would                                                               
be HOUSE BILL NO. 108,  "An Act relating to concurrent vocational                                                               
education,  training, and  on-the-job  trade experience  programs                                                               
for students  enrolled in public  secondary schools;  relating to                                                               
child labor; and providing for an effective date."                                                                              
[The  committee  adopted an  amendment  to  HB  108 at  its  last                                                               
hearing of the bill on 3/4/2022.]                                                                                               
8:10:29 AM                                                                                                                    
REPRESENTATIVE KEN  MCCARTY, Alaska  State Legislature,  as prime                                                               
sponsor, offered  that the main  concern of  HB 108 would  be the                                                               
funding for the career and  technical education (CTE) programs in                                                               
the school districts.  He  stated that the Juneau School District                                                               
(JSD)  is  taking  on  a $45  million  expansion  project,  which                                                               
includes $7  million in  employee benefits.   He stated  that the                                                               
focus of  the benefit  package is  retention of  JDS's workforce.                                                               
He added that  the district has cited the importance  of having a                                                               
younger workforce  that is  invested in  the community  to create                                                               
longevity.   He stressed that  investing in the careers  of youth                                                               
in communities is  a theme throughout the state.   He offered the                                                               
opinion that, when the workforce  comes from out of state, people                                                               
do  not necessarily  stay  and  work for  their  lifetime in  the                                                               
8:12:14 AM                                                                                                                    
CO-CHAIR STORY remarked  that, during the previous  hearing on HB
108,  an amendment  was adopted  that changed  the responsibility                                                               
for negotiating  CTE contracts from  the Department  of Education                                                               
and  Early  Development (DEED)  to  the  school districts.    She                                                               
pointed out  that the amendment  would also designate  the school                                                               
districts to fund  tuition for CTE programs.   She voiced concern                                                               
over  the districts  "having the  dollars" to  contract with  CTE                                                               
vendors and fund the programs.   She questioned whether districts                                                               
have responded to funding the programs.                                                                                         
REPRESENTATIVE MCCARTY  replied that the districts  requested the                                                               
amendment,  as  they  would  have   better  knowledge  about  the                                                               
available resources for contracting in their communities.                                                                       
CO-CHAIR  STORY stated  that a  letter of  support from  the Nome                                                               
Public Schools (NPS) communicated that  the district may not have                                                               
the  means to  support CTE  programs.   She added  that JSD  also                                                               
expressed   concerns  about   the  resources   to  pay   for  the                                                               
contracting.     She   questioned  whether   there  has   been  a                                                               
conversation with NPS since the amendment passed.                                                                               
REPRESENTATIVE MCCARTY  answered that there has  been outreach to                                                               
NPS with no response.                                                                                                           
CO-CHAIR STORY  stated that  she also  reached out  to NPS  to no                                                               
avail, noting  that there are  industry partners funding  some of                                                               
the  CTE programs.   She  requested  that Representative  McCarty                                                               
review the  process, from the  school districts'  perspective, so                                                               
the committee  could understand how  the agreement would  be made                                                               
to pay the  tuition, and how the individual  learning plans would                                                               
all work together.                                                                                                              
REPRESENTATIVE  MCCARTY  responded   that  school  counselors  in                                                               
secondary  schools  follow  guidelines to  ensure  students  have                                                               
completed the required curriculum  before graduation.  The school                                                               
counselor tracks students, so that  by senior year, the counselor                                                               
knows  which classes  are needed  for students  to graduate.   He                                                               
stated that  the process  of following  students through  the CTE                                                               
programs  would be  same.   The CTE  classes would  be considered                                                               
electives, as the industry creates  the criteria.  He stated that                                                               
the  counselor would  follow concurrent  classes,  like math  and                                                               
science, along  with the  CTE classes.   He made  the distinction                                                               
that, if  the student attends  a program that has  not contracted                                                               
with the school  district, then the school district  would not be                                                               
responsible  for  the tuition.    He  stated that  the  districts                                                               
expressed they  would have reservations about  the legislation if                                                               
DEED were responsible for the CTE contracts.                                                                                    
8:19:56 AM                                                                                                                    
CO-CHAIR DRUMMOND stated that school  districts have been cutting                                                               
staff  and, unfortunately,  school counselors  have been  cut the                                                               
most.    She  stated  that teachers  are  teaching,  doing  prep,                                                               
grading tests, and now, acting  as counselors.  She stressed that                                                               
they  do  not  have the  time.    She  pointed  out many  of  the                                                               
committee members  have been  on school boards  in the  past, and                                                               
they understand the  concern over fiscal notes.   She warned that                                                               
the  fiscal note  may show  zero dollars,  but the  result of  54                                                               
schools   in  the   state   delivering   curricula  may   reflect                                                               
differently.    She stated  that  the  legislation would  have  a                                                               
fiscal note of  almost $400,000 for the first  year, $600,000 for                                                               
the second year,  and close to $900,000 for the  third year.  She                                                               
argued that, unless  each district comes forward to  speak on the                                                               
issue, it  would be difficult to  know the costs.   She expressed                                                               
interest in hearing  from DEED on the issue.   She said that, not                                                               
including DEED's  basic budget,  costs would approach  $1 million                                                               
in the out years.   She stated that it would be  best to know the                                                               
costs to school districts before going forward with the bill.                                                                   
REPRESENTATIVE   MCCARTY  related   that   the  Kensington   Mine                                                               
presented an idea for investment into CTE programs.                                                                             
8:23:13 AM                                                                                                                    
HEIDI   TESHNER,  Acting   Deputy  Commissioner,   Department  of                                                               
Education and Early  Development, stated that there  should be an                                                               
updated  fiscal   note  and  directed  that   concern  to  DEED's                                                               
operation manager.                                                                                                              
8:23:40 AM                                                                                                                    
The committee took an at-ease from 8:23 a.m. to 8:30 a.m.                                                                       
8:30:56 AM                                                                                                                    
DEBORAH  RIDDLE,  Division  Operations  Manager,  Innovation  and                                                               
Education   Excellence,  Department   of   Education  and   Early                                                               
Development, responded  to questions  on the  fiscal note  for HB
108.    She  stated  that  the original  fiscal  note  looked  at                                                               
requirements  for DEED  to  be able  to  negotiate contracts  and                                                               
administer  part of  the  tuition  for [CTE  programs].   It  was                                                               
determined that DEED would need part  of a staff position to work                                                               
as an  education specialist  at $129,400 per  year.   This amount                                                               
includes charge  backs of  $5,000.  She  stated that  the tuition                                                               
per  student  would  be  estimated  at $1,000  each  year.    She                                                               
surmised  that  the  tuition would  ease  costs  and  incentivize                                                               
vendors  and organizations  to work  with students.   She  stated                                                               
that DEED anticipated  the number of students to  be 250 students                                                               
for the  first year,  500 for  the second year,  and 750  for the                                                               
third year.   She stated  there is  also a one-time  increment of                                                               
$6,000  for  regulation changes.    She  indicated that,  if  the                                                               
committee  adopted the  proposed committee  substitute, then  the                                                               
costs to  DEED would  be less.   She stated  that the  new fiscal                                                               
note would be about $6,000 for  regulation fees.  She stated that                                                               
the  new fiscal  note would  not be  written until  the committee                                                               
substitute [is adopted].                                                                                                        
8:35:02 AM                                                                                                                    
CO-CHAIR  DRUMMOND clarified  that  the correct  fiscal note  was                                                               
before the  committee.  She  questioned how DEED would  spend the                                                               
$1,000 per student.                                                                                                             
MS.  RIDDLE responded  that the  $1,000 per  student would  be an                                                               
incentive  to help  defer  the  costs on  the  districts.   In  a                                                               
response   to  a   follow-up  question,   she  stated   that  the                                                               
distribution  of the  tuition is  yet to  be determined,  and the                                                               
money  would  either go  to  the  districts  or directly  to  the                                                               
8:36:57 AM                                                                                                                    
REPRESENTATIVE   HOPKINS   questioned   whether   the   committee                                                               
substitute  needs to  be adopted  before DEED  could discuss  the                                                               
impacts of the amendment.                                                                                                       
MS.  RIDDLE responded  that, if  DEED  would no  longer have  the                                                               
responsibility of contracting,  a new formal fiscal  note for the                                                               
committee substitute would need to  be reworked.  She deferred to                                                               
Ms. Teshner.                                                                                                                    
REPRESENTATIVE  HOPKINS  speculated  that,  if  there  is  not  a                                                               
centralized organization negotiating  with CTE vendors, districts                                                               
could  be looking  at $2,000  or $3,000  per student,  unless the                                                               
[tuition fee]  is controlled  within the bill.   He  stated that,                                                               
while  it  is  a  wonderful  idea for  a  program,  it  would  be                                                               
interesting to  see the  costs once  the committee  substitute is                                                               
adopted.    In response  to  Co-Chair  Story,  he said  that  the                                                               
committee  substitute  would  be  drafted  by  Legislative  Legal                                                               
Services  with the  bill sponsor,  and then  the committee  would                                                               
possibly  get the  fiscal notes.    He stated  this could  happen                                                               
going into the next committee of  referral, or it could happen in                                                               
this committee.                                                                                                                 
8:38:38 AM                                                                                                                    
MS. TESHNER, in response to  Co-Chair Story, stated that once the                                                               
committee  substitute   is  adopted,  DEED  would   proceed  with                                                               
finalizing the revised  fiscal note.  She stated  that DEED would                                                               
no longer be  managing the contracts, but there would  be a small                                                               
fee of $6,000  for regulation changes.  In response  to a follow-                                                               
up question  concerning the $1,000  tuition fee, she  stated that                                                               
DEED would  only have the regulation  cost.  She deferred  to Ms.                                                               
Riddle for clarification.                                                                                                       
8:40:02 AM                                                                                                                    
MS. RIDDLE  answered that,  if DEED would  no longer  be handling                                                               
CTE  contracts, the  $1,000  tuition  fee would  then  go to  the                                                               
school districts.                                                                                                               
MS. TESHNER  responded to Co-Chair Story  that it would be  up to                                                               
the  will of  the committee  whether  districts or  DEED pay  the                                                               
tuition fee of $1,000 per student.                                                                                              
8:40:50 AM                                                                                                                    
CO-CHAIR  DRUMMOND suggested  that  the  committee substitute  be                                                               
drafted, with  the amendment, so  DEED would be able  to generate                                                               
the appropriate fiscal notes.   She stated that once the majority                                                               
of  costs shift  from DEED  to another  entity, DEED  would still                                                               
have  a cost  of  about $130,000  a year  for  the new  education                                                               
specialist,  plus the  regulation cost.   She  surmised that  the                                                               
other funds  would go  to the school  districts.   She questioned                                                               
whether DEED would generate a  fiscal note that shows money going                                                               
to  school districts  or the  school districts  would report  the                                                               
expected costs.                                                                                                                 
MS.  TESHNER  stated that  the  school  districts would  have  to                                                               
inform DEED  of the  costs, but  it would not  be reflected  in a                                                               
fiscal  note.   She expressed  the understanding  that the  staff                                                               
position in  the current  fiscal note would  not be  needed under                                                               
the new committee substitute.                                                                                                   
CO-CHAIR DRUMMOND  suggested that the committee  proceed with the                                                               
committee substitute  so the  fiscal impact  for DEED  and school                                                               
districts could be understood.  She  said, "Should it turn out to                                                               
an unfunded mandate,  that's not a bad thing,  because ... school                                                               
districts need  to be properly  funded to deliver  the curriculum                                                               
that  best  serves their  students,  and  their communities,  and                                                               
their  workforce needs."   She  stressed that  [the costs]  would                                                               
need to  be understood  before the bill  moves out  of committee.                                                               
She  stated  that  the  responsibility  of  the  House  Education                                                               
Standing  Committee  is  to  ultimately  oversee  the  54  school                                                               
districts and the costs that may be imposed on them.                                                                            
8:42:57 AM                                                                                                                    
MS. TESHNER, in  response to Co-Chair Story,  explained that once                                                               
DEED receives  the committee substitute,  the fiscal  notes could                                                               
be produced quickly.                                                                                                            
REPRESENTATIVE  PRAX expressed  confusion and  stated the  belief                                                               
that  the   proposed  legislation   would  "permit"   the  school                                                               
districts to provide  CTE, but it would not "mandate"  them to do                                                               
so.  He expressed the  understanding that the difference would be                                                               
the  ability  to  contract with  an  employer  or  apprenticeship                                                               
program outside of school districts to do the actual work.                                                                      
CO-CHAIR STORY  responded that, according to  the current version                                                               
of  the legislation,  secondary schools  "shall" pay  the program                                                               
tuition.  In  example, she said that a school  would work with an                                                               
industry partner  contracted to  pay the  tuition for  a student.                                                               
She  suggested that  the bill  sponsor respond  to Representative                                                               
8:45:00 AM                                                                                                                    
REPRESENTATIVE   MCCARTY  responded   that   the   goal  of   the                                                               
legislation  would  be  to advance  programs  that  offer  career                                                               
feasibility  to  students within  the  education  system.   If  a                                                               
school district would not be  able to offer training to students,                                                               
because of unavailability, the district  would not be mandated to                                                               
offer  that program.   Districts  would only  offer the  programs                                                               
they  can contract.   In  response  to a  follow-up question,  he                                                               
stated  that the  bill would  enable  school districts  to pay  a                                                               
third party  for tuition  costs, but districts  would need  to be                                                               
given  the authority  to do  that.   He stated  that a  system is                                                               
already in place, and some  districts contract with organizations                                                               
to  train  students,  but  this  legislation  would  extend  that                                                               
capability throughout  the state.   He  reiterated that  it would                                                               
not be mandated.  In response  to a follow-up question, he stated                                                               
that it would be up to  the districts to decide from which source                                                               
they  obtain the  tuition money.   He  stated that  he understood                                                               
from districts' testimonies  that the plans to  fund CTE programs                                                               
could include  employers in  the community,  the Carl  D. Perkins                                                               
Career and Technical Education Improvement  Act of 2006 ("Perkins                                                               
IV"), and Alaska Native corporations.                                                                                           
8:48:12 AM                                                                                                                    
REPRESENTATIVE HOPKINS,  in reference  to the  use of  "shall" in                                                               
the legislation,  questioned whether school districts  would have                                                               
to offer CTE programs.                                                                                                          
REPRESENTATIVE  MCCARTY answered  that his  understanding is  the                                                               
districts  would  not  have  to  provide  CTE  programs  or  make                                                               
contracts  with  CTE vendors.    In  a  response to  a  follow-up                                                               
question, he stated  that the school districts would  not have to                                                               
negotiate a  contract with  CTE vendors; he  could not  foresee a                                                               
reason  why  a school  would  not  offer  a program,  unless  the                                                               
request  for that  program would  put a  great imposition  on the                                                               
funding of the school.                                                                                                          
REPRESENTATIVE  HOPKINS  hypothesized   that  the  basic  student                                                               
allocation fund  could be used  to provide CTE programs,  and the                                                               
legislation  would not  need to  provide fiscal  support for  the                                                               
school districts.  He deduced  that, if contracting and providing                                                               
CTE were the districts' responsibility,  then the costs would not                                                               
be  on the  fiscal note  and determining  the [fiscal]  impact on                                                               
school  districts  would be  difficult.    He questioned  whether                                                               
there  are  letters of  support  from  school districts  for  the                                                               
amendment  changes  and,  if  so,  whether  the  letters  include                                                               
explanations of  the expected  costs.   He expressed  interest in                                                               
whether it  is the larger  or the smaller districts  that support                                                               
the amendment change.                                                                                                           
REPRESENTATIVE  MCCARTY  responded  that   he  would  supply  the                                                               
committee with the letters of support.                                                                                          
CO-CHAIR STORY  suggested that any  question on  the implications                                                               
of "shall" in the language  of the legislation should be referred                                                               
to Legislative Legal Services.                                                                                                  
8:52:19 AM                                                                                                                    
CO-CHAIR DRUMMOND stated  that the economies of  scale for larger                                                               
school districts  would allow them  to have complete  schools for                                                               
CTE programs.   She gave the example of King  Tech High School in                                                               
Anchorage,  which has  full-day CTE  programs.   She stated  that                                                               
some  local high  schools will  bus in  students for  partial-day                                                               
programs.  She stated that  the Kulsilvak Career Academy, created                                                               
by the  Lower Yukon School District,  bought an old hotel  in the                                                               
Anchorage area  and contracts with the  Anchorage School District                                                               
to  send these  students to  King Tech  High School  for six-week                                                               
programs.  She  suggested that there are  creative solutions, but                                                               
financially it  would not be  feasible for all  school districts,                                                               
as  building  a  new  workshop  would be  a  burden  for  smaller                                                               
districts.  She stated that  there should be awareness around the                                                               
costs  school  districts  are  asked  to  shoulder  to  fund  the                                                               
programs.  She expressed the opinion  that this would be the year                                                               
to fund programs, as revenues are  coming into the state, and the                                                               
price  of oil  [has increased].   She  argued that  "if we  don't                                                               
spend it  on our future  workforce, then  I think we  are wasting                                                               
our  time."   She  suggested  that the  bill  be  held until  the                                                               
committee substitute and fiscal notes are available.                                                                            
8:55:25 AM                                                                                                                    
REPRESENTATIVE   ZULKOSKY   expressed    support   for   Co-Chair                                                               
Drummond's   comments.     She   stated   that  often   exemplary                                                               
circumstances  stand  out  as   great  examples  of  opportunity,                                                               
especially in  reference to  the Kulsilvak  Career Academy.   She                                                               
reinforced  that  the  types  of   resources  available  to  some                                                               
districts  may  not  be  available   to  other  districts.    She                                                               
encouraged  future   conversations  about  the   availability  of                                                               
resources in the  different districts to ensure that  each can be                                                               
successful  and  not  be  [held  up  in  comparison  to]  outlier                                                               
exemplary examples.                                                                                                             
8:56:31 AM                                                                                                                    
CO-CHAIR  STORY referenced  a  letter of  support  from NPS  that                                                               
conveys  the concern  that the  legislation would  benefit larger                                                               
school  districts, while  districts made  up of  smaller villages                                                               
would not  have access  to programs or  the funds  for expansion.                                                               
She stressed  that HB 108  is crucial, and the  needed investment                                                               
should  be  realistic,  so  there   would  be  clarity  when  the                                                               
legislation  moves  out  of  committee to  the  House  Labor  and                                                               
Commerce  Standing  Committee.   She  suggested  that  consulting                                                               
districts [on costs] would result in clarity.                                                                                   
8:58:40 AM                                                                                                                    
CO-CHAIR DRUMMOND,  in response  to Representatives  McCarthy and                                                               
Story,  clarified  that the  amendment  had  been adopted.    The                                                               
legislation now needs  to be sent to  Legislative Legal Services,                                                               
and  then  it  would  return  to the  committee  as  [a  proposed                                                               
committee substitute], and  at that time the  fiscal notes should                                                               
be  ready.   She suggested  there be  a review  of Perkins  IV to                                                               
understand how  it could  be used  as a source  of funding.   She                                                               
stated that these grants are specifically for career technology.                                                                
REPRESENTATIVE  MCCARTY suggested  that individuals  who provided                                                               
invited testimony  during the previous  hearing could  return, if                                                               
needed, to answer further questions on the proposed legislation.                                                                
9:00:30 AM                                                                                                                    
REPRESENTATIVE  ZULKOSKY,  in  response to  Representative  Prax,                                                               
expressed the  belief that the  discussion had  already reflected                                                               
Representative  Prax's comment.   She  indicated that  the spirit                                                               
and intent of the bill should  match the mechanism.  To make sure                                                               
of  this, she  stated that  the committee  should spend  time and                                                               
make  sure  the language  accomplishes  and  reflects the  stated                                                               
intention of the legislation.                                                                                                   
[HB 108 was held over.]                                                                                                         
         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
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                                                               
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                                                               
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                                                               
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                                                               

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