HOUSE BILL NO. 191                                                                                                            
                                                                                                                                
     "An Act relating  to charter schools; and  providing for                                                                   
     an effective date."                                                                                                        
                                                                                                                                
Co-Chair Therriault  provided the Committee  with information                                                                   
regarding previous  action taken by the Committee  on HB 191.                                                                   
He noted  that the Committee  on 2/7/00 adopted  conceptional                                                                   
Amendment  5. Members  were provided  with  suggested by  the                                                                   
legislative   auditor  and  legislative   legal  counsel   to                                                                   
implement Amendment 5:                                                                                                          
                                                                                                                                
     AS  14.03.260 is  amended  by adding  new subsection  to                                                                   
     read:                                                                                                                      
                                                                                                                                
     (e)  If a  school district  intends to charge  a charter                                                                   
     school for  services provided, then the  school district                                                                   
     shall itemize  the services provided to  charter schools                                                                   
     in  the district.  The  cost  of the  itemized  services                                                                   
     shall  be identified  separately. The  portion of  costs                                                                   
     related to the charter school  shall conform to the cost                                                                   
     principles  as  defined   in  United  States  Office  of                                                                   
     Management  and Budget  Circular A-87  or be  determined                                                                   
     using  a cost allocation  method  mutually agreed  to by                                                                   
     the school district and the  charter school. In addition                                                                   
     to administration,  services provided by a  local school                                                                   
     district may include audio-visual  services, curriculum,                                                                   
     staff  development  and   training,  special  needs  and                                                                   
     intensive    services,   transportation,    procurement,                                                                   
     facility rental  and other  services that are  agreed to                                                                   
     between  the local school  district and charter  school.                                                                   
     Except  for  administration   services,  those  services                                                                   
     required by  law and other  services with  benefits that                                                                   
     are  inseparable  between  the charter  school  and  the                                                                   
     school  district,  a charter  school  may  elect not  to                                                                   
     receive services provided by a local school district.                                                                      
                                                                                                                                
MIKE  TIBBLES,  STAFF,  REPRESENTATIVE  THERRIAULT  explained                                                                   
that the conceptual language in  Amendment 5 attempted to tie                                                                   
the list of exceptions to federal  guidelines. The intent was                                                                   
that the list of exceptions not  be so specific that they run                                                                   
counter  to   the  federal  guidelines.  The   amendment  was                                                                   
expanded  to  incorporate  this  intent.  He  summarized  the                                                                   
Amendment  5  as  drafted by  legal  counsel.  The  amendment                                                                   
would:                                                                                                                          
                                                                                                                                
·  Require  itemization  only  if  the  district  intends  to                                                                   
   charge the charter school for the service. If the school                                                                     
   district has an extra room they could agree to let the                                                                       
   charter school use the room without accounting.                                                                              
                                                                                                                                
·  Require  the  cost   of  the   itemized  services   to  be                                                                   
   identified separately.                                                                                                       
                                                                                                                                
·  Require a  cost  allocation method  that  conforms to  the                                                                   
   cost principles  as defined  in  US 0MB  Circular A-87  or                                                                   
   based upon a  mutually agreed  method between  the charter                                                                   
   school  and   the  school   district.  There   may  be   a                                                                   
   methodology that is not included in the  OMB Circular A-87                                                                   
   that the charter school and the school  district can agree                                                                   
   on. The  OMB  Circular  A-87  requires  that  services  be                                                                   
   accounted for  by the  hour.  School districts  may use  a                                                                   
   different system                                                                                                             
                                                                                                                                
·  Clarify that administration  is a  service that  a charter                                                                   
   school must receive.                                                                                                         
                                                                                                                                
·  Replace language "district  wide programs"  with "services                                                                   
   with benefits  that are  inseparable  between the  charter                                                                   
   school and the school  district" in list of  services that                                                                   
   a  charter  school   must  receive.  This   language  more                                                                   
   appropriately addresses  the intent.  If a charter  school                                                                   
   is  in  a  school  facility  the  electric  bill  will  be                                                                   
   inseparable.                                                                                                                 
                                                                                                                                
CS HB  191 (FIN) was  reported out  of Committee  on 2/07/00,                                                                   
with a  "do not pass" recommendation  and with a  fiscal note                                                                   
by the Department of Education and Early Development.