SB 17-EXTEND SPECIAL EDUCATION SERVICE AGENCY  7:59:59 AM CHAIR STEVENS announced that the first order of business would be SB 17, which extends the sunset for the Special Education Service Agency (SESA). He noted it was the third hearing of the bill. He stated his intention to move the bill out of committee. 8:00:55 AM SENATOR DUNLEAVY moved to adopt the CS for SB 17, labeled 28- LS0289\C, as the working document. CHAIR STEVENS objected for discussion purposes. 8:01:16 AM TIM LAMKIN, Staff, Senator Gary Stevens, explained the changes to SB 17 on behalf of the sponsor. He reviewed that the bill addresses three policy areas the committee was encouraged to consider. The first was whether or not to extend SESA's date; the second was to consider the manner in which SESA is governed and structured, in light of the audit; the third was the funding of SESA. He noted a fourth area of consideration in the new CS that would address language changes. He stated that it appears that the committee wishes to extend the sunset date, to leave the structure of SESA in place, and to not take up the funding issue at this time. MR. LAMKIN addressed extraneous language in Section 1 of version C, lines 10-14. He said he noticed the language did not make sense and that it has been "on the books" since 1986. The language appears to say that the Department of Education will pay into TRS and PERS on behalf of SESA and will withdraw those funds from SESA in order to reimburse itself. He noted that is not the way DEED does business. He said after contacting the Division of Retirement and Benefits, the Department of Law, DEED, and SESA, they all agreed the language was extraneous and should be repealed. He referred to two statements of support in members files. CHAIR STEVENS said the committee would return to the topic of extraneous language later in the meeting. 8:03:51 AM PATRICK PILLAI, Executive Director, Special Education Service Agency (SESA), agreed that the language can be eliminated from the statute. CHAIR STEVENS asked if Mr. Pillai had further comments on SB 17. MR. PILLAI thanked the committee for understanding the critical need that SESA provides. He hoped that the Senate Finance Committee would consider increasing funding to SESA. He said the continuation of SESA until 2021 will provide a critical service to school districts. 8:05:42 AM CHAIR STEVENS agreed that the structure of SESA should remain in place. MR. PILLAI commented that school administrators and special education directors appreciate the extra services SESA provides, especially for multiple disability students and unexpected service needs. CHAIR STEVENS thanked Mr. Pillai for his efforts with SESA. 8:07:52 AM LES MORSE, Deputy Commissioner, Department of Education and Early Development (DEED), testified in support of SESA. He said he was available to answer questions. CHAIR STEVENS asked Mr. Morse to address the status of SESA's structure. MR. MORSE replied that the current system works well as long as everyone is actively engaged. He explained that he and Ms. Nudelman reviewed statutory requirements of SESA and ensured that DEED has an appropriate two-year plan and budget and that the state's special education administrator is an active member of SESA's board. CHAIR STEVENS asked if Mr. Morse was in agreement with removing the extraneous language. MR. MORSE said he was. 8:10:07 AM ELIZABETH NUDELMAN, Director of School Finance, Department of Education and Early Development (DEED), testified in support of SESA. She said the department concurs with the removal of the language. The department does not make payments for SESA's employer contributions. SENATOR HUGGINS asked if SESA employees are under TRS. MR. MORSE said yes. CHAIR STEVENS noted no further public testimony. SENATOR GARDNER voiced appreciation for SESA's services and its importance. 8:12:05 AM CHAIR STEVENS removed his objection; therefore, version C was before the committee. SENATOR DUNLEAVY moved to report CS for SB 17, version C, from committee with individual recommendations and attached fiscal note. There being no objection, CSSB 17 was reported from the Senate Education Standing Committee.