SB 43-ALASKA PERFORMANCE SCHOLARSHIPS  8:01:27 AM CO-CHAIR MEYER announced the consideration of SB 43. [CSSB 43, version M, was before the committee.] 8:01:56 AM CO-CHAIR THOMAS moved to adopt the committee substitute (CS) for SB 43, labeled 27-GS1893\D as the working document. CO-CHAIR MEYER objected for the purposes of discussion. CO-CHAIR THOMAS said version D is a culmination of the work done by the administration, the legislature from both this session and last, and two legislative task forces. He explained that most of the changes have already been discussed by the committee. 8:03:41 AM MURRAY RICHMOND, Staff to Senator Joe Thomas, explained the changes to version D begin on page 3, line 30. The change would make both colleges and universities and certified career and technical programs subject to an advisory program and would require them to make credits and courses available in order to issue a degree or certificate in a customary time period. Page 4, line 12 deleted the word "customary" and replaced it with "a period of time customary". He noted that because all institutions will be required to have some kind of counseling, the part on "personal challenges" was removed. This means that while academic and career advising is mandatory at any participating institution psychological counseling does not need to be provided. He explained that this was done because some career and technical institutions may not have the resources to provide this. He explained that most of the other changes in version D refined the language of how the funds work. He referred to the funding diagram [included in the document packet] which shows the basic breakdown of where the funds for the program come from and where they go. Page 5, lines 15-21, included language that sharpens-up where the funds go. Subsection (1) [lines 15-17] included the two types of awards that are subject to this funding and subsections (2), (3) and (4) [lines 18-21] discussed where these funds go. Page 5, line 28 deleted "awarded by" and replaced it with "available"; and deleted "available" and replaced it with "awarded" on line 29. He explained that the previous CS, version M, had repealed the Alaska Capital Income Fund. However, it was brought to light that there may be issues with the single subject title in repealing a fund that is supposed to establish a scholarship. Page 7, lines 16-20 changed the language so that, rather than repealing the income fund, the money would go directly to the Alaska Performance Scholarship Investment Fund. Page 8, lines 25-27 sharpened the language on where the Amerada Hess Fund money can be distributed. It also made the money an appropriation, rather than a deposit, which would go to the investment fund. Page 14, lines 24-25, changed the date of the money transfer from the Alaska Capital Income Fund to the Alaska Performance Scholarship Investment Fund to occur before the end of the fiscal year, rather the beginning of a new one. Subsection (b) [of Section 24 on pages 14-15] included transition language that gives the Alaska Commission on Postsecondary Education (ACPE) the ability to makes awards to students during the first two years of the program, based on an annual average and monthly average. Page 15, line 28 changed the effective date for subsection (2) and (3) on page 4 [lines 9-13] to July 1, 2012. CO-CHAIR MEYER asked for confirmation that he worked with Jerry Burnett [Deputy Commissioner for the Treasury Division, Department of Revenue] in creating the funding diagram included in the committee members' packet. MR. RICHMOND replied yes. 8:11:55 AM LES MORSE, Deputy Commissioner, Department of Education and Early Development (DEED), introduced himself. CO-CHAIR THOMAS asked him to make some brief comments on the ability for rural schools to have access to the curriculum required for qualifying for this scholarship. MR. MORSE replied that the department is doing two things. First, for more than a year, it has been looking at what the districts currently offer (which is what's in state regulation) in comparison to the curriculum requirements necessary for the Alaska Performance Scholarship eligibility. Second, the department has been looking at the capacity of correspondence schools in individual districts and on a statewide level. They are also looking into a statewide virtual school that will offer correspondence courses. He said the department is moving forward to make sure that these offerings exist and are available to all students. CO-CHAIR THOMAS commented that this is not a simple task. SENATOR FRENCH asked for more information on the correspondence course offerings: what content is included, who designs the curriculum, and what the success rate is in regards to students finishing a course on time. MR. MORSE answered that he could not speak to the success rate of students finishing correspondence courses on time. In regards to the content and curriculum of these courses, he explained that there are about 14 school districts that offer correspondence education to anyone in the state, which includes both remedial and advanced courses. Last year DEED brought on an additional correspondence school that runs a statewide program. There are also numerous programs within individual districts. The courses are developed independently, using commercial text books to supplement the course or there are particular curriculums that parents can purchase for students. The district is responsible for making sure these courses align with state standards. He assured the committee that within all of those programs there are advanced level courses available. CO-CHAIR MEYER asked if the bill, as it has been re-crafted by the committee, is workable for the administration. MR. MORSE answered that he thinks DEED can make this piece of legislation work. CO-CHAIR MEYER explained that the committee is finished with its work on the scholarship program and are putting the final touches on it. SENATOR FRENCH asked for confirmation that the amendment proposed by Senator Stevens was included in version D. CO-CHAIR MEYER replied yes. He added that there are also three fiscal notes included with version D, which have not changed. 8:20:14 AM CO-CHAIR THOMAS moved to report CSSB 43( ), version D, from the committee with individual recommendations and attached fiscal note(s). There being no objections, CSSB 43(EDC) moved from the Senate Education Standing Committee. [The assumption was that Co-Chair Meyer removed his objection.]