Legislature(2023 - 2024)GRUENBERG 120

01/17/2024 04:00 PM House RULES

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04:02:20 PM Start
04:03:39 PM SB140
04:35:26 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 140 INTERNET FOR SCHOOLS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
-- This meeting will Recess between 5:00 PM and
6:00 PM until 01/20/24 at 10:00 AM --
                  SB 140-INTERNET FOR SCHOOLS                                                                               
                                                                                                                                
[Contains discussion  of SB 52,  HB 139, HB  144, HB 111,  and HB
106.]                                                                                                                           
                                                                                                                                
4:03:39 PM                                                                                                                    
                                                                                                                                
CHAIR C. JOHNSON announced that  the only order of business would                                                               
be CS FOR  SENATE BILL NO. 140(FIN), "An Act  relating to funding                                                               
for Internet services for school  districts; and providing for an                                                               
effective date."  [Before the committee was HCS CSSB 140(FIN).]                                                                 
                                                                                                                                
CHAIR C.  JOHNSON outlined his plans  to hear the bill  today and                                                               
recess  to   continue  on  Saturday,  1/20/24,   to  hear  public                                                               
testimony,  consider  amendments,  and  decide the  will  of  the                                                               
committee on the legislation.                                                                                                   
                                                                                                                                
4:05:32 PM                                                                                                                    
                                                                                                                                
MARIDON  BOARIO,  Staff,  Senator  Lyman  Hoffman,  Alaska  State                                                               
Legislature, reviewed  the original version  of SB 140  on behalf                                                               
of  Senator  Hoffman, prime  sponsor.    She  said SB  140  would                                                               
provide  additional funding  to eligible  schools through  school                                                               
broadband  assistance  grants (BAG)  to  help  schools reach  100                                                               
megabits (mb) per second of  Internet download speed, an increase                                                               
from the 25 mb per second currently in statute.                                                                                 
                                                                                                                                
4:06:42 PM                                                                                                                    
                                                                                                                                
BRODIE ANDERSON, Staff, Representative  Neil Foster, Alaska State                                                               
Legislature, explained  the two  changes that  were made  to CSSB
140(FIN) by  the House Finance  Committee on 5/15/23.   The first                                                               
change  added a  section  to  include an  increase  to the  pupil                                                               
transportation  formula funding  to "about  half of  the cost  of                                                               
inflation."   He added, "At  that point  in time the  fiscal note                                                               
was going  to reflect roughly  $7.5 million."  The  second change                                                               
was  to  include language  from  the  Senate Education  [Standing                                                               
Committee's]  CSSB 52(FIN),  "Version D,"  with the  exception of                                                               
the pupil  transportation formula funding since  that had already                                                               
been incorporated by way of  the previous amendment.  This change                                                               
resulted  in what  Mr.  Anderson called  "Version  U," [HCS  CSSB
140(FIN)] before the House Rules Standing Committee today.                                                                      
                                                                                                                                
4:08:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TILTON   moved  to   adopt  the   proposed  House                                                               
committee  substitute  (HCS)  for   CSSB  140(FIN),  Version  33-                                                               
LS0687\D, Bergerud, 1/15/24, as a working document.                                                                             
                                                                                                                                
4:09:01 PM                                                                                                                    
                                                                                                                                
CHAIR C. JOHNSON objected for the purpose of discussion.                                                                        
                                                                                                                                
4:09:22 PM                                                                                                                    
                                                                                                                                
TOM  WRIGHT, Staff,  Representative Craig  Johnson, Alaska  State                                                               
Legislature, explained the  changes that would be  made under the                                                               
proposed (HCS) for CSSB  140(FIN), Version 33-LS0687\D, Bergerud,                                                               
1/15/24,  presented   through  a  summary  of   changes  document                                                               
included  in   the  committee  packet,  which   read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     This summary explains the changes between this draft,                                                                      
      LS-330687\D, and the version that was passed out of                                                                       
     House Finance, HCS for CSSB (FIN), draft 33-LS0687\U.                                                                      
                                                                                                                                
     Section 1:  No change.                                                                                                   
                                                                                                                                
     Section 2:  No change.                                                                                                   
                                                                                                                                
     Section 3: Adds a new section to AS 14.03, Public                                                                        
     Schools Generally. This new section gives the                                                                              
     board of Education the authority to authorize a                                                                            
     charter school in a district under regulations                                                                             
     adopted by the board. The regulations must include an                                                                      
     application procedure and provisions for                                                                                   
     the  establishment  of  an academic  policy  committee.                                                                    
     The local school boards shall  operate a charter school                                                                    
     under  this  section  as   provided  in  AS  14.03.255-                                                                    
     14.03.290.                                                                                                                 
                                                                                                                                
     Section 4:   Same as found in section 3  of the Finance                                                                  
     CS.                                                                                                                        
                                                                                                                                
     Section 5:   Same as found in section 4  of the Finance                                                                  
     CS.                                                                                                                        
                                                                                                                                
     Section 6: Amends AS 14.07.165(a),  Duties.  Adds a new                                                                  
     subsection stating  regulations regarding establishment                                                                    
     of charter schools be made by the board of education.                                                                      
                                                                                                                                
     Section 7:   Same as found in section 5  of the Finance                                                                  
     CS.                                                                                                                        
                                                                                                                                
     Section 8:   Same as found in section 6  of the Finance                                                                  
     CS.                                                                                                                        
                                                                                                                                
     Section  9:   Amends  AS 14.17.430,  State funding  for                                                                  
     correspondence study.  Adds subsection  2 that adds the                                                                    
     special needs  factor to the ADM  of the correspondence                                                                    
     program.                                                                                                                   
                                                                                                                                
     Section  10:     Amends  AS  14.17.470,   Base  student                                                                  
     allocation.  Adds a $300 increase to the BSA.                                                                              
                                                                                                                              
     Section  11:   Adds  new subsections  to AS  14.30.272,                                                                  
     Procedural Safeguards.   Adds  provisions for  deaf and                                                                    
     hearing  impaired  that  must   be  adopted  by  school                                                                    
     districts.     Basically,  it  is a  deaf  and hard  of                                                                    
     hearing  children's  bill  of rights  that  establishes                                                                    
     consistency in  the information provided to  parents by                                                                    
     the school district, allows parents  to choose the best                                                                    
     method of  communication for  their child  and requires                                                                    
     the  school  district  to provide  services  using  the                                                                    
     parent's chosen method of communication.                                                                                   
                                                                                                                                
     Section 12:   Adds  a new  subsection to  AS 14.30.276,                                                                  
     Least   restrictive   environment.       Requires   the                                                                    
     department  to  establish  and  operate  a  centralized                                                                    
     program   for  students   whose  primary   language  is                                                                    
     American  Sign Language,  provide residential  services                                                                    
     as  part  of the  program,  establishes  that a  school                                                                    
     district   my  operate   the  program   under  specific                                                                    
     requirements, and provide funding  for the students who                                                                    
     attend the program operated by a school district.                                                                          
                                                                                                                                
     Section 13:  Same as found in section 8 of the CS.                                                                       
                                                                                                                                
     Section 14: Repeals  Sections 1, 2 and  21, chapter 61,                                                                  
     SLA  2014, and  sec.  38(b), ch.101,  SLA  2018.   This                                                                    
     language  proposes to  keep the  same structure  of tax                                                                    
     deductions and  tax credits that  began in  2021, while                                                                    
     removing the sunset provision.                                                                                             
                                                                                                                                
     Section  15:  Uncodified  law.    Provides  subject  to                                                                  
     appropriation, a lump sum  payment to eligible teachers                                                                    
     as  a   retention  and  recruitment  incentive.     The                                                                    
     criteria  for  eligibility  is  contained  within  this                                                                    
     provision.                                                                                                                 
                                                                                                                                
     Section 16: Uncodified law.   Allows the State Board of                                                                  
     Education  to   adopt  regulations  to   implement  the                                                                    
     changes made in sections 3 and 6 of this bill.                                                                             
                                                                                                                                
     Section 17:  Repeals  the education tax credit statutes                                                                  
     as noted in Section 14.                                                                                                    
                                                                                                                                
     Section 18:   Section 5 is affected by  the adoption of                                                                  
     Sections 4, 6,  8, 11, 12, 16, 20, 23,  28, 30, 33, and                                                                    
     47 of  ch. 40, SLA 2022,  and takes effect on  June 30,                                                                    
     2034.                                                                                                                      
                                                                                                                                
     Section 19: Section 16 takes effect immediately.                                                                         
                                                                                                                                
     Section  20:    All  sections  with  the  exception  of                                                                  
     Sections 18 and 19 take effect on July 1, 2024.                                                                            
                                                                                                                                
4:15:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JUSTIN RUFFRIDGE,  Alaska  State Legislature,  as                                                               
co-chair of the House Education  Standing Committee, discussed HB
139 and  HB 144, as  they relate to  SB 140.   He said he  is the                                                               
sponsor  of both  the House  bills, which  address correspondence                                                               
study programs and  "a slight change to the way  that is funded."                                                               
He  explained that  currently  those programs  are  funded at  90                                                               
percent  of  average  daily membership,  with  no  special  needs                                                               
factors  included.   He indicated  that [HB  139] would  increase                                                               
that to be  "just the average daily membership  multiplied by the                                                               
special needs factor found in  AS 14.17.420(a)(1)."  He said that                                                               
was amended  in [the House  Education Standing Committee]  "to be                                                               
slightly  different  -  back  down  to the  current  rate  of  90                                                               
percent," and  he remarked  that he  would welcome  discussion by                                                               
the House  Rules Standing Committee regarding  "that component of                                                               
this bill."                                                                                                                     
                                                                                                                                
REPRESENTATIVE RUFFRIDGE said  HB 144 was a repeal  of the sunset                                                               
of the  education tax credit  "due to sunset  at the end  of this                                                               
calendar year."   He said the program was established  in 1987 to                                                               
encourage private businesses to  make charitable contributions to                                                               
Alaska's  schools,  and  it  has   been  "quite  successful"  and                                                               
"consistently extended."  He offered  his understanding that "the                                                               
components  of this  is to  make this  be a  program that  can be                                                               
established for  quite some  time, to  repeal the  current sunset                                                               
provision  thus   making  the   program  that   exists  currently                                                               
available without a sunset."                                                                                                    
                                                                                                                                
4:18:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ALLARD, who  is co-chair  of the  House Education                                                               
Standing Committee, discussed Sections 11  and 12 of the proposed                                                               
House committee substitute,  Version D, which she  said are based                                                               
on  HB 111,  a  bill addressing  the deaf  and  hard of  hearing,                                                               
sponsored by Representative Allard.   She said Sections 11 and 12                                                               
"aim  to establish  consistency  in the  information provided  to                                                               
parents by  school districts,  allow parents  to choose  the best                                                               
method of  communication for their  children, and  require school                                                               
districts to  provide services in  the parents' chosen  method of                                                               
communication."   She said services  currently offered  by school                                                               
districts vary.  She reported  that seventeen states have already                                                               
passed the  Deaf and Hard  of Hearing Children's Bill  of Rights.                                                               
She  noted  that  while  there  is  a  school  for  the  deaf  in                                                               
administrative code, it is not established in statute.                                                                          
                                                                                                                                
REPRESENTATIVE  ALLARD  stated  that  deaf and  hard  of  hearing                                                               
children possess  the same inherent  ability to  acquire language                                                               
as  other children  and have  the  right to  graduate and  pursue                                                               
further education  and embark  on careers.   Further,  she stated                                                               
that they  have the right  "to have their ability  to communicate                                                               
and acquire  language treated as  a priority."  She  talked about                                                               
the detrimental  effects of  a lack of  access in  the classroom.                                                               
She spoke  about the unique nature  of rural Alaska and  how some                                                               
children who are deaf or  hard of hearing may require residential                                                               
services  as  part  of  their  educational  program.    She  said                                                               
Sections  11 and  12 would  establish that  children be  provided                                                               
instruction, services, and assessment  in their primary language.                                                               
Further, these  sections would mandate  that that  the Department                                                               
of Education  and Early Development (DEED)  establish and operate                                                               
a  centralized program  for students  whose  primary language  is                                                               
American Sign  Language (ASL)  and provide  residential services.                                                               
Representative Allard  concluded by  emphasizing that it  is time                                                               
to end the segregation of deaf and hard of hearing children.                                                                    
                                                                                                                                
4:21:45 PM                                                                                                                    
                                                                                                                                
CHAIR C. JOHNSON noted those available online for questions.                                                                    
                                                                                                                                
4:22:23 PM                                                                                                                    
                                                                                                                                
CHAIR C.  JOHNSON removed  his objection to  the motion  to adopt                                                               
(HCS) for CSSB 140(FIN),  Version 33-LS0687\D, Bergerud, 1/15/24,                                                               
as a working document.                                                                                                          
                                                                                                                                
4:22:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  objected.   He spoke about  the importance                                                               
and impact  of public  schools and how  they are  fundamental and                                                               
patriotic.   He said he  would like to  retain, if not  grow, the                                                               
population of  "working age families."   He said he  supports the                                                               
inclusion of "the governor teacher  bonuses" since it makes sense                                                               
"to  marry a  priority  of  the executive  with  our priority  of                                                               
raising the BSA."                                                                                                               
                                                                                                                                
REPRESENTATIVE  FIELDS  opined that  the  language  in Version  D                                                               
relating to charter  schools is problematic.   He explained there                                                               
is a prohibition on using  state funds for religious schools, and                                                               
"the  charter language  is effectively  a voucher  program" where                                                               
charter  schools  with "nearly  no  oversight"  are using  public                                                               
funds  for   potentially  religious   material.     He  suggested                                                               
considering the  possibility of narrowing  that language  so that                                                               
"what we're supporting  is true public charters."   That leads to                                                               
the question of what the best  uses of the state's resources are.                                                               
Using his  district as an example,  Representative Fields pointed                                                               
out  that there  is  a  charter school  in  Chugach, and  student                                                               
population comprises  approximately half  the number  of minority                                                               
students as "the  closest neighborhood school."  It  is mostly an                                                               
upper  income bracket,  which he  said  is true  of most  charter                                                               
schools.  He  stated that he is happy to  support charter schools                                                               
but not at the expense of [public] schools.                                                                                     
                                                                                                                                
REPRESENTATIVE FIELDS addressed the BSA, which he said is data-                                                                 
driven.   He said he  is optimistic  that it eventually  would be                                                               
raised to  "not less than  680."  He said  he thinks the  $300 in                                                               
Version  D "would  leave  us a  long way  from  meeting our  bare                                                               
minimum  constitutional mandate  to maintain  a system  of public                                                               
education.                                                                                                                      
                                                                                                                                
4:28:07 PM                                                                                                                    
                                                                                                                                
CHAIR C.  JOHNSON announced  an amendment  deadline of  4:00 p.m.                                                               
Friday, 1/19/24.                                                                                                                
                                                                                                                                
4:28:21 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives Tilton,  Allard,                                                               
Sumner, Shaw,  and C.  Johnson voted  in favor  of the  motion to                                                               
adopt  (HCS) for  CSSB 140(FIN),  Version 33-LS0687\D,  Bergerud,                                                               
1/15/24,  as  a working  document.    Representatives Fields  and                                                               
Schrage voted against it.  Therefore,  Version D was adopted as a                                                               
working document by a vote of 5-2.                                                                                              
                                                                                                                                
4:29:25 PM                                                                                                                    
                                                                                                                                
ALEXEI PAINTER,  Legislative Fiscal Analyst,  Legislative Finance                                                               
Division,  Legislative  Agencies  and  Offices,  presented  cost-                                                               
estimates for the proposed HCS for  CSSB 140(FIN), Version D.  He                                                               
said Sections  1, 4,  5, and 13  have to do  with data  on school                                                               
outcomes; the sections were originally  in SB 52; DEED originally                                                               
had a fiscal note for this  that was $1,029,800; $900,000 of that                                                               
was  included  in the  governor's  budget  and was  not  actually                                                               
approved.   Section 2 addresses  BAG changing  from 25 mb  to 100                                                               
mb; the Senate Finance Committee  zeroed out this fiscal note and                                                               
made it  indeterminate because  of concerns  that the  number was                                                               
"not  sufficiently refined";  the number  in the  original fiscal                                                               
note was $19,835,800; this still may  be the best estimate or the                                                               
department  may  have  an  updated  number;  it  was  not  to  be                                                               
effective until  1/1/24, so it  would have been possible  to fund                                                               
it  later on;  the way    this bill  is structured,  it would  be                                                               
effective 7/1/24  and would need  to be  funded, so it  cannot be                                                               
left indeterminate if the goal is to fund it.                                                                                   
                                                                                                                                
MR.  PAINTER said  Section 6  is a  new section  that relates  to                                                               
charter  school  applications,  with  a  placeholder  of  $6,000.                                                               
Section  7,  regarding  pupil  transportation,  had  an  original                                                               
fiscal  note of  $7.5  million, which  was  recalculated to  $7.3                                                               
million  based on  the student  count projected  for fiscal  year                                                               
2025  (FY 25).    Section  8, boarding  school  increase, was  at                                                               
$4,036,300 based  on the department's  fiscal note of  last year.                                                               
Section 9, relating to correspondence  schools and HB 139, had no                                                               
fiscal  note updated  for  Version  D; [HB  139]  "passed out  of                                                               
committee with a multiplier of  .9 still, but then multiplying by                                                               
1.2,  so  still  a  20  percent  increase";  Legislative  Finance                                                               
Division's  estimate,  based  on  the  number  of  correspondence                                                               
students in  the FY 25  projected student count,  is $23,452,900,                                                               
with the existing  statutory BSA.  Section 10  would increase the                                                               
BSA by $300 to $6,260 based on  the FY 25 student count; it would                                                               
increase state costs by $77,044,200.   The cost of Sections 9 and                                                               
10, with the  higher BSA and correspondence  multiplier, would be                                                               
an additional  $1,180,500.  Sections  11 and 12 relate  to DEED's                                                               
fiscal  note for  HB  111,  for $6,000;  Section  12  may have  a                                                               
longer-term  impact  when  a  school  is  established,  and  that                                                               
consideration is  not included by DEED  because potentially there                                                               
would be a process to establish the school.                                                                                     
                                                                                                                                
MR. PAINTER  stated that  Section 14,  the education  tax credit,                                                               
has no  fiscal impact  on the budget;  the Department  of Revenue                                                               
(DOR)  said that  it  would  have a  negative  effect on  revenue                                                               
compared to  the baseline  of allowing the  credit to  expire; it                                                               
would  be $1.6  million  in the  first half  year  and then  $3.2                                                               
million a year in the full  years in which that credit would have                                                               
otherwise expired;  although it would  have no fiscal  impact, it                                                               
would impact the state's fiscal  position.  Section 15, regarding                                                               
lump sum  payment to teachers,  comes from HB 106;  DEED's fiscal                                                               
note for  that last year  was $58,111,000; that number  may shift                                                               
if the number of teachers changes this year.                                                                                    
                                                                                                                                
4:34:49 PM                                                                                                                    
                                                                                                                                
CHAIR   C.  JOHNSON   noted   that  he   had   spoken  with   the                                                               
administration,  which  issued  a  request  for  proposals  (RFP)                                                               
related to the  increase in Internet speed, and  he expressed his                                                               
hope  that that  number would  be available  to the  committee by                                                               
Saturday.                                                                                                                       
                                                                                                                                
[SB 140 was held over.]                                                                                                         

Document Name Date/Time Subjects
D Draft-SB 140.pdf HRLS 1/17/2024 4:00:00 PM
SB 140
Cost Estimate for HCS CS SB140.pdf HRLS 1/17/2024 4:00:00 PM
SB 140
SB 140 Rls Legal Memo.pdf HRLS 1/17/2024 4:00:00 PM
SB 140
SB 140 Rules Sectional Analysis.docx.pdf HRLS 1/17/2024 4:00:00 PM
SB 140
Summary of Changes Rules.pdf HRLS 1/17/2024 4:00:00 PM
SB 140
SB 140-HFIN-U version.PDF HRLS 1/17/2024 4:00:00 PM
SB 140