Legislature(2011 - 2012)HOUSE FINANCE 519

04/12/2011 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 2:10 pm Today --
+= SB 102 AK AFFORDABLE HEATING PROGRAM PAYMENTS TELECONFERENCED
Scheduled But Not Heard
+= HB 183 APPLICATION OF VILLAGE SAFE WATER ACT TELECONFERENCED
Moved CSHB 183(FIN) Out of Committee
+= HB 103 POWER PROJECT; ALASKA ENERGY AUTHORITY TELECONFERENCED
Moved CSHB 103(FIN) Out of Committee
+= HJR 4 CONST. AM: TRANSPORTATION FUND TELECONFERENCED
<Bill Hearing Canceled>
+= HB 89 EXTRACTION OF BEDLOAD MATERIAL TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 104 ALASKA PERFORMANCE SCHOLARSHIPS TELECONFERENCED
Moved CSHB 104(FIN) Out of Committee
HOUSE BILL NO. 104                                                                                                            
                                                                                                                                
     "An  Act  renaming the  Alaska  performance  scholarship                                                                   
     and  relating   to  the  scholarship  and   tax  credits                                                                   
     applicable   to   contributions  to   the   scholarship;                                                                   
     establishing   the   Alaska    performance   scholarship                                                                   
     investment fund  and the Alaska performance  scholarship                                                                   
     award   fund  and   relating   to   the  funds;   making                                                                   
     conforming  amendments; and  providing for an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
4:06:42 PM                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough  listed  the  four  fiscal  notes:  FN                                                                   
(REV)  (3/29/11); zero  fiscal  impact,  FN (REV)  (3/21/11);                                                                   
zero  fiscal   impact,  FN  (EED)  (3/23/11);   indeterminate                                                                   
fiscal impact,  FN 3 (EED)  indeterminate fiscal  impact. She                                                                   
noted a  previous hearing (4/7/11)  on the bill  that allowed                                                                   
public testimony.                                                                                                               
                                                                                                                                
4:09:56 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough  MOVED to  report CSHB 104(EDC)  out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Representative Gara OBJECTED.                                                                                                   
                                                                                                                                
Co-Chair Stoltze WITHDREW the motion.                                                                                           
                                                                                                                                
Representative   Gara  MOVED   Amendment  1   (27-GH1893\D.5,                                                                   
Mischel, 4/7/11):                                                                                                               
                                                                                                                                
     Page 3, following line 8:                                                                                                  
          Insert a new bill section to read:                                                                                    
        "* Sec. 4. AS 14.43.820, as enacted by sec. 5, ch.                                                                    
     14, SLA 2010, is amended by adding a new subsection to                                                                     
     read:                                                                                                                      
               (c)       Notwithstanding   the    eligibility                                                                   
          requirements  in (a)(2) - (4) of this  section, the                                                                   
          department  shall adopt regulations to  provide for                                                                   
          the  eligibility of  a student  who has attained  a                                                                   
          general  education   development  certificate,  and                                                                   
          for  waiver  or delay  of  a  portion of  the  core                                                                   
          academic  curriculum   requirements  in  (a)(3)  of                                                                   
          this section  if that portion of the  curriculum is                                                                   
          not available  to a student  at a public  school in                                                                   
          the  district  in  which the  student  resides.  To                                                                   
          demonstrate    high   academic   performance    for                                                                   
          eligibility  under  this  section,  the  department                                                                   
          may require a student to                                                                                              
                    (1)    provide     alternative    minimum                                                                   
          standardized  test  scores established  under  this                                                                   
          section;                                                                                                              
                    (2)  complete some or all of the core                                                                       
          curriculum  requirements in (a)(3) of  this section                                                                   
          after graduation; or                                                                                                  
                    (3)  provide a measure of academic                                                                          
          achievement    equivalent    to    (2)   of    this                                                                   
          subsection."                                                                                                          
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 3, following line 24:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "* Sec. 7. AS 14.43.825, as enacted by sec. 5, ch.                                                                    
     14, SLA 2010, is amended by adding a new subsection to                                                                     
     read:                                                                                                                      
               (g)  Notwithstanding the grade-point average                                                                     
          requirements   in   (a)   of  this   section,   the                                                                   
          department  shall adopt regulations to  provide for                                                                   
          the  eligibility of  a student  who has attained  a                                                                   
          general education development certificate."                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 8, line 21:                                                                                                           
          Delete "Section 15"                                                                                                   
          Insert "Section 17"                                                                                                   
                                                                                                                                
     Page 8, line 22:                                                                                                           
          Delete "sec. 6"                                                                                                       
          Insert "sec. 8"                                                                                                       
                                                                                                                                
     Page 8, line 23:                                                                                                           
          Delete "sec. 6"                                                                                                       
          Insert "sec. 8"                                                                                                       
                                                                                                                                
     Page 8, line 24:                                                                                                           
          Delete "Section 12"                                                                                                   
          Insert "Section 14"                                                                                                   
                                                                                                                                
     Page 8, line 25:                                                                                                           
          Delete "secs. 17 - 19"                                                                                                
          Insert "secs. 19 - 21"                                                                                                
                                                                                                                                
Vice-chair Fairclough OBJECTED.                                                                                                 
                                                                                                                                
Representative  Gara explained  the amendment. He  identified                                                                   
the  provisions as  an "Alternative  Pathway" to  eligibility                                                                   
for   the  merit   scholarship.   He  elaborated   that   GED                                                                   
recipients,  including some  home school  students, were  not                                                                   
eligible to participate,  and some schools did  not offer the                                                                   
courses  required  for  qualification.  He noted  that  other                                                                   
states   with  a   merit  scholarship   program  offered   an                                                                   
"alternative pathway";  scholarship eligibility  for students                                                                   
unable to meet the traditional requirements.                                                                                    
                                                                                                                                
Representative Gara  cited page 1, line 16  of the amendment.                                                                   
He  informed that  the language  provided  the Department  of                                                                   
Education  and Early  Development  (DEED)  the discretion  to                                                                   
impose alternative  academic achievement measures  equivalent                                                                   
to core  classes to ensure that  the student can catch  up or                                                                   
has met the merit level of academic standards.                                                                                  
                                                                                                                                
MIKE  HANLEY,  COMMISSIONER,   DEPARTMENT  OF  EDUCATION  AND                                                                   
EARLY CHILDHOOD  DEVELOPMENT, responded to the  amendment. He                                                                   
noted  that  the department  already  allowed  exceptions  to                                                                   
traditional   diplomas.  Diplomas   were   not  required   of                                                                   
homeschool students;  course requirements, SAT  or ACT scores                                                                   
were  sufficient.  WorkKeys scores  for  technical  education                                                                   
students  were  accepted  and  GED  without  requirements  or                                                                   
restrictions.                                                                                                                   
                                                                                                                                
4:14:19 PM                                                                                                                    
                                                                                                                                
Commissioner  Hanley continued  that  only  three schools  in                                                                   
the state  did not  offer the  core classes  required of  the                                                                   
merit  scholarship. The  department  did not  want to  punish                                                                   
students  because   the  courses  were  not   available.  The                                                                   
department had  a two year grace  period for the  students in                                                                   
the  schools.  He  concluded   that  an  alternative  pathway                                                                   
existed.                                                                                                                        
                                                                                                                                
Representative  Neuman reported that  10 percent  of students                                                                   
in Alaska were  home schooled. He asked whether  they had the                                                                   
same ability  as public  school students  to qualify  for the                                                                   
scholarship  program.  Commissioner   Hanley  affirmed.  Home                                                                   
school students  can verify that they completed  the required                                                                   
courses  or use  SAT, ACT,  or  WorkKeys scores  as the  sole                                                                   
qualifier.  Representative   Neuman  asked  if   high  school                                                                   
students acquired  credit for  taking college level  classes.                                                                   
Commissioner   Hanley  replied   that  courses  with   higher                                                                   
standards   than  set  for   performance  scholarships   were                                                                   
accepted.                                                                                                                       
                                                                                                                                
4:18:05 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  spoke   against  the  amendment.  She                                                                   
agreed with  the intent but did  not want to  make exceptions                                                                   
at  this  point.  She was  willing  to  closely  monitor  the                                                                   
results over  the years  and make  allowances as needed.  She                                                                   
trusted  the   department  would  provide   the  information.                                                                   
Commissioner  Hanley  noted  that  regular  reporting  was  a                                                                   
requirement of the legislation.                                                                                                 
                                                                                                                                
Representative   Gara   responded   to   testimony   by   the                                                                   
commissioner  that students  were currently  allowed to  take                                                                   
required  courses  during  a   two-year  grace  period  after                                                                   
graduation.  He  argued  that  the  amendment  put  the  same                                                                   
option into  statute and  allowed the  department to  set the                                                                   
standards. For  example, the department  could decide  to use                                                                   
standardized   test   scores,   allow   for   classes   after                                                                   
graduation,  or  come up  with  something  else. He  did  not                                                                   
understand   why  the  department   opposed  the   amendment.                                                                   
Commissioner  Hanley  clarified   that  the  mentioned  grace                                                                   
period was built  in as the scholarship was  implemented over                                                                   
the next two years; it was not a true grace period.                                                                             
                                                                                                                                
4:21:03 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:21:16 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Guttenberg,   Neuman,  Costello,  Doogan,   Edgmon,                                                                   
Gara, Joule                                                                                                                     
OPPOSED: Wilson, Fairclough, Stoltze, Thomas                                                                                    
                                                                                                                                
The MOTION PASSED (7/4). Amendment 1 was ADOPTED.                                                                               
                                                                                                                                
Representative   Doogan  asked   for  clarification   of  the                                                                   
funding estimate in FN (EED) (3/23/11).                                                                                         
                                                                                                                                
DIANE  BARRANS, EXECUTIVE  DIRECTOR, POSTSECONDARY  EDUCATION                                                                   
COMMISSION,  DEPARTMENT OF EDUCATION  AND EARLY  DEVELOPMENT,                                                                   
explained that the  Education Committee added a  provision to                                                                   
fund the Alaska  Advantage Education Grant (AEG)  but did not                                                                   
stipulate a  level of funding  for the program.  The analysis                                                                   
section  described what  full funding  would look like  based                                                                   
on the  current year applicant  pool [$6,969.6 million  in FY                                                                   
12].  She referred  to the  chart on  page 2,  of the  fiscal                                                                   
note. She  explained that  the estimates  used were  the same                                                                   
used to  fund FY  11 Alaska  Performance Scholarship  program                                                                   
(APS).  Representative  Doogan  wanted  an actual  number  in                                                                   
order  to evaluate  the  program  costs. Ms.  Barrans  stated                                                                   
that $1.1 million  was appropriated for FY 2012.  The program                                                                   
existed  for five  years and  was  funded from  a variety  of                                                                   
sources but  never as a  general fund operating  expense. She                                                                   
added  that the  legislature  would  determine  the level  of                                                                   
funding. Representative  Doogan  confirmed that full  funding                                                                   
was estimated in the fiscal notes. Ms. Barrans affirmed.                                                                        
                                                                                                                                
4:25:27 PM                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough recapped  that the  fiscal notes  were                                                                   
zero  or  indeterminate.  Other  legislation  was  needed  to                                                                   
capitalize the fund.                                                                                                            
                                                                                                                                
Representative Doogan  replied that he still  wanted accurate                                                                   
costs.  He thought  that whether  the  funding mechanism  was                                                                   
split off or attached to HB 106 there was a cost.                                                                               
                                                                                                                                
Vice-chair Fairclough  MOVED to  report CSHB 104(FIN)  out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  notes. There being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB  104(FIN)  was REPORTED  out  of  Committee with  a  "no                                                                   
recommendation"  and with  two zero notes  by the  Department                                                                   
of  Revenue, one  indeterminate  note  by the  Department  of                                                                   
Education  and Early  Development,  and previously  published                                                                   
fiscal note: FN3 (EED).                                                                                                         
                                                                                                                                
4:27:35 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:31:03 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 103 CS WORKDRAFT 27-GH1822-I 041211.pdf HFIN 4/12/2011 1:30:00 PM
HB 103
HB 103 support.pdf HFIN 4/12/2011 1:30:00 PM
HB 103
SB 102Program Stats DPA Region-Census District- Community.xlsx HFIN 4/12/2011 1:30:00 PM
SB 102
SB 102HAP FUNDING 2008-2011 INCLUDING TRIBES.xlsx HFIN 4/12/2011 1:30:00 PM
SB 102
SB 102Affordable Heating Program Vendor Information (1).docx HFIN 4/12/2011 1:30:00 PM
SB 102
SB 102 conceptual AAHP regulations.docx HFIN 4/12/2011 1:30:00 PM
SB 102
HB103-CCED-NEW AIDEA-04-11-11.pdf HFIN 4/12/2011 1:30:00 PM
HB 103
HB103-CCED-NEW AEA-04-11-11.pdf HFIN 4/12/2011 1:30:00 PM
HB 103
HB 104 AMENDMENT #1.pdf HFIN 4/12/2011 1:30:00 PM
HB 104