HB 71-SCHOOL DISTRICT ONLINE CHECKBOOK  8:02:26 AM CO-CHAIR ALLARD announced that the first order of business would be HOUSE BILL NO. 71, "An Act relating to education; and relating to a school district online checkbook." 8:03:00 AM REPRESENTATIVE GEORGE RAUSCHER, Alaska State Legislature, read the sponsor statement for HB 71 [included in committee packet], which read as follows [original punctuation provided]: The School Districts around Alaska spend millions of dollars each year without a clear understanding of where the money goes. We believe it goes to everything from office supplies, to teacher salaries, administrative workers and hopefully the kids in the classroom. A tool like an online checkbook will help the Governor and Legislature understand where the deficit is, and where funding is needed. Public accountability helps ensure that funds are spent wisely, and the public is entitled to understand where the funding goes also. The intent of the online checkbook is to create a free, searchable website that provides Alaskans with easy access to detailed and comprehensive information on School District spending. This will encourage better understanding of district needs and, ultimately, help ensure that funding is directed to where it should be. REPRESENTATIVE RAUSCHER noted the sectional analysis had already been presented at a prior hearing. 8:05:08 AM REPRESENTATIVE PRAX asked Representative Rauscher whether he had checked with the school districts to find out if they have expectations of how much they will have to spend to accomplish this proposal, and whether the districts think it would be an improvement. REPRESENTATIVE RAUSCHER confirmed that he had. He also noted that the public would like to understand where the money is specifically spent so they can ask the right questions. 8:09:10 AM REPRESENTATIVE HIMSCHOOT asked Representative Rauscher whether he had checked with single sight districts that dont maintain a website or considered the financial burden of this proposal. REPRESENTATIVE RAUSCHER replied he had not. He noted that he could not distinguish specific districts within the 54 where it might be a financial burden. 8:10:22 AM CO-CHAIR RUFFRIDGE noted that larger school districts budgets were available to the public on an online platform. He questioned who may be seeking detailed "line by line" checkbook data. REPRESENTATIVE RAUSCHER explained that for some interested people, it is very hard to get the information, and sometimes schools can be evasive in providing the exact information being sought. He said the public may receive a more generalized number. 8:14:27 AM CO-CHAIR RUFFRIDGE asked Representative Rauscher whether he had personal experiences with people that struggled to obtain particular information. He stated that he wanted to be certain that people could use the checkbook to find information they are "missing out on." REPRESENTATIVE RAUSCHER offered to forward an email, blacking out the person's name, so Representative Ruffridge could see "what their problem was." CO-CHAIR RUFFRIDGE indicated that he was interested. 8:16:00 AM REPRESENTATIVE STORY addressed cybersecurity, and the possibility of names on the checkbook being a security threat to vendors. She also noted the "tremendous expense" for some districts that do not even have an online presence. 8:17:45 AM REPRESENTATIVE MCKAY opined that people should be able to see, in detail, where money is going without having to go through a lot of hassle to get the information. He expressed his support for HB 71. 8:19:13 AM CO-CHAIR ALLARD stated that she supported transparency and gave a personal example of being a parent having a hard time obtaining information. She shared her belief that any member of the public should see how public dollars are being spent. She confirmed her support for HB 71. 8:20:31 AM REPRESENTATIVE RAUSCHER explained that he sponsored an online checkbook bill two years ago, and during that time, no one was worried about any kind of security issues regarding the checks that were written. He stated that it should not be thought of as a security breach. 8:22:28 AM REPRESENTATIVE HIMSCHOOT moved to adopt Amendment 1 to HB 71, labeled 33-LS0435/A.2\Marx 3/23/23, which read: Page 1, line 1: Delete "and" Page 1, line 1, following "checkbook": Insert "; and relating to the review of a school  district budget by a legislator" Page 1, following line 10: Insert new bill sections to read:  "* Sec. 2. AS 14.17 is amended by adding a new section to read: Sec. 14.17.925. Legislator review of school  district budget. (a) The superintendent of a school district shall meet with a legislator who represents the house or senate district in which the school district is located to review the budget of the school district if requested by the legislator. The meeting must be held at a place located in the school district, unless the superintendent and the legislator agree otherwise. (b) In this section, "school district" has the meaning given to "district" in AS 14.17.990.  * Sec. 3. AS 24.05 is amended by adding a new section to read: Article 6. Review of School District Budget.  Sec. 24.05.220. Duty to review school district  budget. (a) At least once a year, each legislator shall meet with the superintendent of a school district located within the legislator's house district or senate district to review the school district budget. The meeting must be held at a place located in the school district, unless the superintendent and the legislator agree otherwise. (b) In this section, "school district" has the meaning given to "district" in AS 14.17.990." REPRESENTATIVE PRAX objected. REPRESENTATIVE HIMSCHOOT spoke to Amendment 1. She explained that since school districts are funded publicly, the information about how the money is spent is publicly available. She said the proposed amendment would put an obligation on legislators to spend one day in their home school district to explore the budget with the districts superintendent. 8:23:58 AM CO-CHAIR ALLARD asked whether the bill sponsor considered Amendment 1 to be a friendly amendment. REPRESENTATIVE RAUSCHER opined that Amendment 1 would be a heavy burden on some legislators, which, compounded with senators districts, would become even bigger. He stated that he did not find Amendment 1 to be a "friendly amendment." 8:26:15 AM REPRESENTATIVE HIMSCHOOT drew attention to page 1, line 21 of Amendment 1, which stated "a" school district. She explained she has 22 communities in 12 school districts and did not want to put a burden on anyone; however, she stressed that it would be "a" school district, meaning one district. Further, she pointed out that every legislator is in a community that has a district office. 8:26:46 AM REPRESENTATIVE STORY asked for clarification about line 14 of Amendment 1, which stated, "unless the superintendent and the legislator agree otherwise". She asked whether that meant that they could agree to have a phone conversation. REPRESENTATIVE HIMSCHOOT confirmed that is correct, it does not have to be in person. 8:27:21 AM REPRESENTATIVE MCKAY opined that he would rule the proposed amendment as out of order, as it has nothing to do with the bill. 8:27:57 AM The committee took an at-ease from 8:27 a.m. to 8:44 a.m. 8:44:13 AM CO-CHAIR ALLARD asked Representative Prax whether he maintained his objection. REPRESENTATIVE PRAX maintained his objection. He shared his belief that it is a good idea for legislators to pay attention to their districts; however, he disagreed with the requirement that a superintendent must meet with a legislator. He explained that it is not [the legislature's] primary responsibility to look at each school district, and said it was not a good idea to put it in statute. 8:46:43 AM REPRESENTATIVE MCKAY questioned the penalty for not meeting with the superintendent. 8:46:56 AM REPRESENTATIVE HIMSCHOOT replied it would be the same penalty as the legislature not finishing session in 90 days. 8:47:09 AM CO-CHAIR ALLARD observed that the proposed amendment requires a legislator to review the budget, which has nothing to do with the online checkbook; therefore, she stated she would not support Amendment 1. 8:47:54 AM The committee took an at-ease from 8:47 a.m. to 8:50 a.m. 8:50:35 AM A roll call vote was taken. Representatives Himschoot, and Story voted in favor of Amendment 1. Representatives Prax, McKay, Allard, and Ruffridge voted against it. Therefore, Amendment 1 failed by a vote of 2-4. 8:51:21 AM The committee took a brief at-ease at 8:51 a.m. 8:51:53 AM CO-CHAIR ALLARD opened public testimony on HB 71. 8:52:36 AM SARAH MONTALBANO, Education Policy Analyst, Alaska Policy Forum, testified in support of HB 71, and gave a brief description of the forum. She stated that transparency helps residents understand their government and hold it accountable, and explained that it is often difficult and expensive for the public to obtain financial information about their government. Transparency requirements do not have to be burdensome to districts, she said, but the statute should list minimum data requirements that must be provided. Other states and school districts nationwide have recognized the value of providing checkbooks online, she said. She opined that Alaska would do well to follow suit. 8:54:48, AM HERMAN MORGAN, representing self, testified during the hearing on HB 71. He opined that rural districts were being failed and urged the legislature to fix the education system. 8:58:13 AM CASSEE OLIN, Administrative Services Director, Juneau School District, testified during the hearing on HB 71. She expressed concern that the const for school districts would be hard to estimate; additionally, she expressed concern that smaller school districts with only one business manager would be affected. Lastly, she expressed concern about cybersecurity. She stated that she lacked clarity as to how the checkbook would be set up. She offered to remain available for any questions. 9:00:59 AM CO-CHAIR ALLARD closed public testimony on HB 71. 9:01:11 AM REPRESENTATIVE STORY asked Representative Rauscher what level of detail is in the checkbook and requested an example of one that had been done for school districts. REPRESENTATIVE RAUSCHER gave examples of the type of entries that might be shown in the checkbook. 9:02:08 AM CO-CHAIR ALLARD announced that HB 71 was held over.