Legislature(1997 - 1998)
02/11/1997 03:05 PM House HES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 54 - EDUCATION TECHNOLOGY PROGRAM Number 1280 CHAIRMAN BUNDE said that CSHB 54(HES), "An Act establishing the Alaska education technology program; and providing for an effective date.", was put into a subcommittee on Thursday. He said it is the chair's intention that the committee will hear the subcommittee report as he is anticipating some amendments to come from this report. He said the committee will not act upon the bill today. Number 1381 REPRESENTATIVE GREEN said Representative Kemplen and he met twice last week in a subcommittee for CSHB 54(HES). He said Representative Vezey was unable to attend either meeting. At those meetings representatives from the Department of Education (DOE), Department of Revenue (DOR) and some non-agency people came to discuss CSHB 54(HES). He said they discussed many things and referred to a report titled, "HESS Subcommittee for HB 54 - Education Technology Program Summary." REPRESENTATIVE GREEN said one of the questions they looked at was what if companies, who are currently paying taxes in the state of Alaska, were to make donations to this fund. He referred to examples presented by Mr. Bartholomew from the DOR in a chart located in the committee file. He said the first scenario looked at was what if all 16 percent of Alaskan corporations, who paid income tax, were to make contributions in the amount of $3.7 million. He said the result was that it would have a negative impact on the general fund with a decrease of $220,440 per year. Another scenario assumed half that much in contributions and said there is almost a linear association between the two so that if other people want to make other assumptions as to how much money might be contributed, the adversity to the general fund could be measured. Number 1488 REPRESENTATIVE GREEN said an overall agreement from the participants in the subcommittee was that if an education technology fund was generated, any interest associated with the education technology fund should stay with that fund rather than going into the general fund. He said there was an indication of the possibility of local matching grants. He said they checked with Representative Kott, the sponsor of HB 54, who said this possibility was agreeable to him. Number 1516 REPRESENTATIVE GREEN said the other discussions were covered in the report. He said there were two recommended changes to CSHB 54(HES), listed on page two. He said the subcommittee felt that libraries should be included in the list of fund recipients and that there would be investment earnings in the fund that should stay in the fund. REPRESENTATIVE AL VEZEY asked for clarification on the table regarding the effect on the general fund. Number 1556 REPRESENTATIVE GREEN said the amount of earnings that a company has was broken down in this litany of four different types of corporations. He said estimates were made that these companies would make contributions to the fund. He said there is no way to know, in advance, how much money might be donated to a fund. Without this knowledge there was no way to know how the donations to this fund would affect the general fund. He said Mr. Bartholomew made two different assumptions and based on them he determined the loss of taxes to the general fund. He said this chart indicated a nearly linear relationship so that you could enter your estimate of what the contribution might be and come up with the effect on the general fund. Number 1638 CHAIRMAN BUNDE asked that these questions be addressed to the subcommittee members after the meeting. He asked Representative Kott to comment on the two proposed changes. Number 1648 REPRESENTATIVE PETE KOTT, sponsor of HB 54, said he had been informed by his staff, who attended the subcommittee meeting, and said he understands the changes that are being suggested. He said he has no problem with the changes as the intent of CSHB 54(HES) remains, even with the suggested amendments. He said the proposed amendments clarify the intent and that he would go along with them. Number 1690 REPRESENTATIVE VEZEY asked what can be accomplished with CSHB 54(HES) that can't be accomplished under existing law. Number 1700 REPRESENTATIVE KOTT said, it was his understanding, that the DOE needs a vehicle in which monies can be contributed. He said the whole purpose of CSHB 54(HES) is to provide that vehicle, that platform, as well as articulating some of the requirements as to how the money will be distributed or identifying some of the pre- requisites for acquiring a grant from a library or a school district's perspective. Number 1725 CHAIRMAN BUNDE asked if there would be a parallel between CSHB 54(HES) and the Alaska Children's Trust fund. He asked if these things were similar. Number 1733 REPRESENTATIVE KOTT said he felt they would be similar to a large extent, with the exception that there is no certainty that there would be any money contributed to the education technology fund. He said, "Although I understand from staff that the Department of Education has a grant in hand from the federal government. That is my understanding. I'm not sure how they are going to execute the grant. I'm not sure the strings that might be associated with it. I understand it is for technology." Number 1764 CHAIRMAN BUNDE said he would want someone here from the DOE as it would influence his opinion about CSHB 54(HES). Number 1783 REPRESENTATIVE GREEN said there was a question about payment of staff services by the fund and said he could address this question later. He said the subcommittee found that they could go both ways with this. He presented information about a computer company and said he would be happy to share it with the committee. Number 1881 CHAIRMAN BUNDE asked the committee to peruse the subcommittee report and asked them to be prepared to take action on CSHB 54(HES) on Thursday, February 13, 1997.
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