SENATE BILL 88 "An Act establishing a pilot program for charter schools; and providing for an effective date." SENATOR BERT SHARP testified in support of CS SB 88 (FIN). He stated that the issue of charter schools was discussed at length during the two years of the 18th Legislature. Unfortunately, charter schools was just one part of SB 61, which in all aspects was an "omnibus education bill". The bill tried to address diverse issues, each of which were 4 controversial and in some way tainted the other by association. He continued that all charter school proposals must be submitted to the local school board for consideration and upon their approval, forwarded to the Commissioner of the Department of Education for review and compliance to state law. All staffing of charter schools must be done on a volunteer basis. Senator Sharp added that a charter school would not dilute the amount of money available to school districts other schools. By challenging students to achieve at their highest capabilities, the charter schools may lead the way to a more effective education system for the next century. He urged the Committee to support the legislation. Senator Sharp noted that the project would sunset in ten years. Co-Chair Hanley asked if the project would be optional for each school district. Senator Sharp stated that it would be optional and would need to be approved by each school board. Co-Chair Hanley referenced Section 3, Page 3, which implies that the local school board would "have" to provide the charter school with a budget. He asked if that language would require the school district to have a charter school. Senator Sharp noted that the application for charter school would need to be submitted by the group to the school board. The school board would then consider the entire packet. Co- Chair Hanley reiterated that he understood that the local school board would have to forfeit to the State Board of Education applications for a charter school that have been "approved or denied". Senator Sharp emphasized that the intent of the legislation defines that the Commissioner of Education would have to approve the agreement that the charter group would meet the statutory requirements for public education. Representative Grussendorf expressed concern with the financial obligation of deferred maintenance for the charter schools and asked if those causes would be binding for the State. Senator Sharp replied that the school district can at any point terminate the contract if the charter school deviated from the prescribed budget. Representative Brown questioned if there would be any change on the teachers' tenure accumulation requirements or their employment conditions. Senator Sharp noted that any teachers participating in the charter school program would continue to be subject to collective bargaining agreement terms and would continue to be employees of the school 5 district. Representative Brown asked if religious education would be authorized through the proposed legislation. Senator Sharp pointed out that Page 4, Line 14, specified that the charter school would be "nonsectarian". JERRY MCBEATH, FAIRBANKS NORTH STAR BOROUGH BOARD OF EDUCATION, FAIRBANKS, spoke in support of CS SB 88 (FIN) and urged Committee members to support the legislation. (Tape Change, HFC 95-113, Side 2). Representative Therriault MOVED to report CS SB 88 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. CS SB 88 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Education dated 3/9/95.