HB 297-POSTSECONDARY SCHOLARSHIPS  8:14:05 AM CHAIR SEATON announced that the first order of business would be HOUSE BILL NO. 297, "An Act establishing the governor's performance scholarship program and relating to the program; establishing the governor's performance scholarship fund and relating to the fund; relating to student records; making conforming amendments; and providing for an effective date." 8:14:48 AM REPRESENTATIVE GARDNER moved to adopt HB 297, Version E, as the working document. 8:15:00 AM There being no objection, Version E was before the committee. 8:15:28 AM CHAIR SEATON directed attention to Sec. 14.43.815, beginning on page 6, line 27, of the bill. He paraphrased from the bill and read [original punctuation provided]: (a) graduated, or will graduate not later than six months after the date of the application, from a high school in the state, including a public school, private school, and home school; CHAIR SEATON surmised the referenced language allowed applicants to make an application after they graduate, but not sooner than six months before they graduate; however, a date certain after graduation was not specified. 8:16:27 AM EDDY JEANS, Director, School Finance and Facilities Section, Department of Education and Early Development (EED), explained that the end date for scholarship eligibility was six years following high school graduation, thus the "window" of opportunity to apply, receive, and expend scholarship funds was six months prior to graduation from high school, to six years following graduation from high school. Mr. Jeans said this provision was clearly stated in paragraph (3), page 7, line 11, and paraphrased from the bill which read [original punctuation provided]: (3) will receive and use, while an Alaska resident, the scholarship at a qualified postsecondary institution in the state not later than six years after the beginning of the first school year after a student's graduation from high school ... CHAIR SEATON questioned whether the department anticipated receiving late applications. 8:18:02 AM MR. JEANS said the department expects that students would be aware of the time limit and would apply immediately. 8:18:24 AM REPRESENTATIVE GARDNER referred to page 7, lines 15-16, and paraphrased from the bill which read [original punctuation provided]: ... standards for extension of time must include two additional years if the student is in military service; ... REPRESENTATIVE GARDNER expressed her concern that the standard for the extension of time must include two years, rather than "up to two additional years." MR. JEANS advised this was the component for the extension of military service, and agreed that "must include" was strong language. 8:19:22 AM JEAN MISCHEL, Attorney, Legislative Legal Counsel, Legislative Legal and Research Services, Legislative Affairs Agency, advised inserting "not more than two additional years" after the word "include" on page 7, line 15. 8:19:52 AM REPRESENTATIVE GARDNER suggested inserting "may include two additional years." MS. MISCHEL cautioned "may" provides the commissioner authority to deny the extension. CHAIR SEATON asked whether the proposed changes are equivalent. MS. MISCHEL pointed out that they are not equivalent language; in fact, "may" defers to the discretion of the commissioner. She recalled the intent of the committee was to require the commissioner to grant a two-year extension if needed for military service. 8:21:49 AM REPRESENTATIVE GARDNER, acknowledging the intent of the committee, suggested "standards [for] extension of time must include up to two additional years ..." 8:22:08 AM MS. MISCHEL recommended "not more than." 8:22:34 AM REPRESENTATIVE GARDNER moved Amendment 1,which inserted "not more than." 8:22:50 AM CHAIR SEATON restated Amendment 1 which read: Page 7, line 15 After "include" Add "not more than" CHAIR SEATON objected for the purpose of discussion. 8:23:10 AM REPRESENTATIVE KELLER offered Amendment 1 to Amendment 1 which read: Page 7, line 15 Delete "must" Insert "may" REPRESENTATIVE KELLER said the intention of the amendment was to allow the commissioner discretion to deny an extension. 8:23:35 AM REPRESENTATIVE GARDNER paraphrased from line 13 which read [original punctuation provided]: the student qualifies for an extension of time allowed by the department; REPRESENTATIVE GARDNER said she was comfortable with the amendment, although the department already has the discretion to deny. There being no objection, Amendment 1 to Amendment 1 was treated as adopted. 8:23:59 AM CHAIR SEATON restated Amendment 1, as amended, which read: Page 7, line 15 "of this paragraph, standards for extension of time may [must] include not more than two additional years if the student is in military service; There being no objection, Amendment 1 was adopted. 8:24:40 AM CHAIR SEATON moved Amendment 2 which read: Page 7, lines 8-9 After the word "state" delete "for not less than two years," 8:25:05 AM REPRESENTATIVE MUNOZ objected for the purpose of discussion. 8:25:11 AM CHAIR SEATON explained Amendment 2 was recommended by the bill's drafter. 8:26:29 AM REPRESENTATIVE MUNOZ surmised Amendment 2 removes the requirement for a student to attend high school in Alaska for two years. She expressed her support for the amendment, observing that the standard of state residency can be retained by family members of a parent in military service. 8:27:15 AM CHAIR SEATON clarified that this is an allowance for an additional qualification for students who leave with their custodial parents due to military service. Students would still be subject to the remaining criteria to qualify for a scholarship, but have "an exception for the qualification of graduating from an Alaska school ..." 8:28:12 AM REPRESENTATIVE MUNOZ gave an example of a student in a military family, who maintains his/her state residency, and remains Outside for all four years during high school. She asked whether that student would be eligible. 8:28:59 AM MS. MISCHEL indicated no. In further response to Representative Munoz, she explained that two years is not specified in this amendment; in fact, attendance could be for any amount of time, although the time period could be clarified in regulation. The amendment attempts to equate high school graduation in-state with out-of-state high school graduates who are also residents. Ms. Mischel reminded the committee the purpose of the bill was to instill more rigor in the state's high school curriculum, thus the attendance requirement. 8:29:55 AM REPRESENTATIVE MUNOZ restated her question about a student of a military family who retains his/her residency. 8:30:05 AM MS. MISCHEL confirmed that student would not qualify. 8:30:31 AM REPRESENTATIVE GARDNER gave an example to illustrate the purpose of the amendment. 8:31:09 AM REPRESENTATIVE P. WILSON stated her support for the amendment, and noted that many military families maintain state residency for other purposes. 8:31:57 AM REPRESENTATIVE MUNOZ indicated that she removed her objection. 8:32:01 AM There being no further objection, Amendment 2 was adopted. 8:32:12 AM CHAIR SEATON called attention to page 20, line 10, and read [original punctuation provided]: Education or the Alaska Student Loan Corporation for the guarantee and disbursing of financial aid CHAIR SEATON informed the committee of a request from the Postsecondary Education Commission to delete "guarantee" and insert "servicing." 8:33:06 AM STEPHANIE BUTLER, Director Operations/Outreach, Postsecondary Education Commission, Department of Education and Early Development (EED), explained that the word "servicing" is a broader term, and more appropriate for the bill. 8:33:32 AM CHAIR SEATON moved Amendment 3 which read: Page 20, line 10 Delete "guarantee" Insert "servicing" 8:33:53 AM There being no objection, Amendment 3 was adopted. 8:34:28 AM REPRESENTATIVE MUNOZ related an inquiry from a constituent who asked whether the graduating classes of 2011-2013 would be held to lesser curriculum requirements. 8:35:05 AM MR. JEANS advised the committee that the bill contains transition language that allows the department to develop regulations to implement transition eligibility requirements. For example, the math requirement for 2011 seniors would be three years, instead of four years. 8:36:08 AM CHAIR SEATON cited page 22, line 4, which read: (1) may be eligible for the program even though the student did not fully meet the required core academic curriculum for the school years beginning July 1, 2010, through [June 30], 2013; 8:36:48 AM REPRESENTATIVE GARDNER asked about a transitioning year senior who is taking his/her second year of math. MR. JEANS indicated a second year of math would suffice for a senior in the class of 2011. 8:37:42 AM CHAIR SEATON asked whether the department will continue to require standardized test scores as part of the evaluation. 8:38:07 AM MR. JEANS answered that the Alaska State Board of Education & Early Development (state board) will be setting the "cut scores" for the testing levels, as well as the transition regulations. 8:38:26 AM REPRESENTATIVE GARDNER surmised that a student eligible for the program at its inception may only meet high school graduation requirements as they are today. 8:38:43 AM MR. JEANS agreed that may be the case for students who wait until their senior year to take required courses. REPRESENTATIVE GARDNER remarked: ...If we're getting students in without changing the behavior or the choices that they're making, or adding any rigor, that's not the intention. CHAIR SEATON expressed his hope that the state board will adopt rigorous regulations. 8:39:44 AM REPRESENTATIVE GARDNER said the testimony indicates not. CHAIR SEATON pointed out a transition period is necessary; otherwise, scholarships would not be awarded for four years. REPRESENTATIVE GARDNER opined three years of AP classes could be required during the transition. 8:40:47 AM MR. JEANS assured the committee the department's intent was to increase rigor for students; however, flexibility is necessary so that juniors and sophomores have time to make adjustments. In fact, by the time the state board would be setting regulations, students eligible for this scholarship will have chosen classes for their senior year. 8:42:26 AM REPRESENTATIVE P. WILSON noted that students who want one of the scholarships may have to change plans, and said, "that's the whole idea with this." The intent should be clear to the state board that the standards of rigor must apply for the first students who receive this award. She stressed the standards should be as high as possible. 8:44:19 AM CHAIR SEATON agreed, and suggested students could take virtual classes or attend summer school; however, during the transition, requiring a student to meet every one of the qualifications may be difficult. 8:45:26 AM REPRESENTATIVE KELLER said he expected the transition regulations to require the same rigor from students as in the future. 8:45:56 AM REPRESENTATIVE MUNOZ reviewed the current requirements of four years of English, two years of math, and one year of science. She suggested the requirements for the transitional period could be an additional year of math and science. 8:46:36 AM REPRESENTATIVE BUCH noted the term "transition" gives the board and the department discretion to establish the program that will be in place by the spring of 2014. He agreed that there should be no question about the intent of the bill. 8:47:50 AM REPRESENTATIVE GARDNER suggested an amendment to require at least of three years of math and three years of science. MR. JEANS restated the current graduation requirements of four years of language arts, three years of social studies, two years of math, and two years of science. 8:49:00 AM REPRESENTATIVE BUCH pointed out this requirement is beyond the reach of schools in the Bush, and without time for schools to make programs available, may exclude students. 8:49:34 AM CHAIR SEATON asked the department whether the "special circumstances ... beyond the student's control" provision of the bill applies when districts do not offer the required curriculum. 8:50:29 AM MR. JEANS advised the alternative pathways are not waivers, but allow credit for correspondence courses or other alternatives. He asked the committee to allow the legislation to move forward without amendments, so that the state board can hear public testimony and review all of circumstances and issues related to the transition language. 8:51:05 AM REPRESENTATIVE GARDNER stated Mr. Jeans' comment holds true for every provision in the bill; however, the bill is not about giving students scholarships, but about reforming the K-12 education system by encouraging and requiring students to "reach higher." 8:51:37 AM REPRESENTATIVE P. WILSON assured the committee that the teachers in small schools will provide what is necessary to help an interested student qualify for this program. She praised the efforts of the state's teachers, and their abilities to serve students, and warned against discounting the possibilities for any student who works hard. 8:53:17 AM REPRESENTATIVE KELLER agreed that on-line courses are available, and 2011 graduates have time to prepare. 8:53:49 AM CHAIR SEATON stated the conceptual amendment to page 22, line 6, adds "however, this shall include at least three years of math and three years of science." 8:54:37 AM MS. MISCHEL said the conceptual amendment would amend page 22, line 4, and she recommended removing the phrase "even though the student did not fully meet" and specifying that the core curriculum requirements are met except that the student must have at least three years math and three years science. CHAIR SEATON asked Representative Gardner to comment. 8:54:23 AM REPRESENTATIVE GARDNER surmised the amendment waives the fourth year of math and science and requires three, which was correct. 8:56:09 AM REPRESENTATIVE MUNOZ agreed with the amendment. 8:56:31 AM CHAIR SEATON restated Conceptual Amendment 4, offered by Representative Gardner, and objected for the purpose of discussion. 8:56:58 AM CHAIR SEATON confirmed that the amendment did not change the standards, but affected the transitional requirements. 8:58:16 AM CHAIR SEATON withdrew his objection. There being no further objection, Conceptual Amendment 4 was adopted. 8:59:07 AM REPRESENTATIVE BUCH recognized the chairman's work on the bill, which may be a great start towards reform. 8:59:52 AM CHAIR SEATON noted there was an unmet student need component in the bill that would ensure that all Alaskans can access the program, and pursue the path that they choose for postsecondary education. He anticipated the legislation would increase the rigor of all high schools, elevate the workforce, and result in more postsecondary students attending schools in the state. 9:01:03 AM REPRESENTATIVE MUNOZ related work on the bill began in the interim, and the thorough process continued under the focus of the committee. She praised the leadership of the committee and said members should be proud of the work that was done. 9:01:47 AM REPRESENTATIVE GARDNER expressed her hope that the scholarship program will match the success seen in other states with similar programs, and that the legislation will continue to progress "in a form that we recognize." She acknowledged that rural areas have valid concerns about the bill, such as the challenge of learning by distance education. Representative Gardner said the legislation may result in a "clamor and push for change, and that's the point of the legislation." 9:03:33 AM REPRESENTATIVE KELLER opined the bill builds the incentives for parents and school districts to increase success levels for students. 9:04:19 AM CHAIR SEATON cited the influence of various programs and contributions from committee members to the GPS bill. 9:04:48 AM REPRESENTATIVE MUNOZ thanked Mr. Jeans and Ms. Mischel for their assistance on the bill. She then moved to report the Committee Substitute for HB 297, Version E, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 297(EDC) was reported from the House Education Standing Committee. 9:06:04 AM The committee took an at-ease from 9:06 a.m. to 9:09 a.m.