HOUSE BILL NO. 174                                                                                                            
                                                                                                                                
     An Act relating to the state  centralized correspondence                                                                   
     study program, to funding  for educational programs that                                                                   
     occur primarily  outside school  facilities, and  to the                                                                   
     duties  of  school boards  of  borough and  city  school                                                                   
     districts  and  regional educational  attendance  areas;                                                                   
     and providing for an effective date.                                                                                       
                                                                                                                                
Co-Chair  Williams MOVED  to ADOPT  CS HB 174  (STA).   There                                                                   
being NO OBJECTION it was ADOPTED.                                                                                              
                                                                                                                                
Co-Chair Williams MOVED Amendment #1 (23-GH1126\H.1  Ford):                                                                     
                                                                                                                                
     Page 2, following line 2:                                                                                                  
          Insert a new bill section to read:                                                                                    
                                                                                                                                
     "*Sec. 3  AS 14.08.111(1) is amended to read:                                                                              
               (1) provide during the school term of teach                                                                      
                    year, an educational program for each                                                                       
                    school age child who is enrolled in or a                                                                
                    resident of the district;"                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly:                                                                          
                                                                                                                                
          Page 3, line 9:                                                                                                       
               Delete "5 and 6"                                                                                                 
               Insert "6 and 7"                                                                                                 
          Page 3, line 10                                                                                                       
               Delete "sec. 8"                                                                                                  
               Insert "sec. 9"                                                                                                  
                                                                                                                                
EDDY JEANS,  MANAGER, SCHOOL FINANCE AND  FACILITIES SECTION,                                                                   
DEPARTMENT  OF  EDUCATION  AND  EARLY  DEVELOPMENT  discussed                                                                   
changes  proposed  by  Amendment   #1.  He  stated  that  the                                                                   
amendment  pertains   to  existing  statute,  and   that  the                                                                   
language mirrors  section 3 of  the proposed bill.   He noted                                                                   
that there  were two  provisions in  statute which  addressed                                                                   
school boards,  in AS 14.14.090  and 14.08.111  pertaining to                                                                   
Regional Education  Attendance Areas (REAA).   He pointed out                                                                   
that  the  amendment  ensured  that  all  districts  offering                                                                   
statewide  correspondence programs  must accept all  students                                                                   
in an open enrollment process.   He noted that some districts                                                                   
put  caps  on  the  number  of   students  allowed,  and  the                                                                   
amendment would remove the caps  and require programs to have                                                                   
open enrollment.                                                                                                                
                                                                                                                                
Representative  Whitaker asked to  which section of  the bill                                                                   
the  amendment  pertained.   Mr.  Jeans  clarified  that  the                                                                   
changes were  made to  the reference of  statute:   section 3                                                                   
refers to  14.14.090, which applies  to duties of  any school                                                                   
board,  and that  the amendment  pertained  to AS  14.08.111,                                                                   
which was specific to the duties of REAA school boards.                                                                         
                                                                                                                                
Vice-Chair Meyer  expressed his support of the  amendment and                                                                   
asked   if  the   Administration   supported  the   Committee                                                                   
Substitute.    Mr.  Jeans  pointed   out  that  although  the                                                                   
Administration   would  prefer   the   original  bill,   they                                                                   
understood the Committee's choice  to adopt the State Affairs                                                                   
Substitute.  In  response to a question by  Vice-Chair Meyer,                                                                   
he noted  that the  Department had  on contract personnel  to                                                                   
implement a closure  plan for the school and  desired to move                                                                   
forward with the process.                                                                                                       
                                                                                                                                
Vice-Chair Meyer asked if the  state lost money by continuing                                                                   
the program  for the  year.   He pointed  out that the  major                                                                   
cost savings  came from  closing the  summer school  program.                                                                   
Mr. Jeans confirmed that this  was the primary costs savings,                                                                   
but  raised the  concern  that  they did  not  know how  many                                                                   
students  would now  enroll  for the  school  year given  the                                                                   
prospect that the school would eventually close.                                                                                
                                                                                                                                
Vice-Chair Meyer pointed  out that by delaying for  a year it                                                                   
gave the  opportunity for other  schools to pick  up programs                                                                   
not currently offered.                                                                                                          
                                                                                                                                
There being NO OBJECTION, Amendment #1 was ADOPTED.                                                                             
                                                                                                                                
Representative Foster  MOVED to report CSHB 174  (FIN) out of                                                                   
Committee with the accompanying  fiscal note.  There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSHB  174 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass"  recommendation  and two  previously  published  fiscal                                                                   
impact  notes:   #2 from  Department of  Education and  Early                                                                   
Development  (K12) and  #3 from Department  of Education  and                                                                   
Early Development (Alyeska).