HB 135-SCHOOL CONSTRUCTION GRANT PROGRAM  8:25:56 AM CHAIR HUGHES announced the consideration of HB 135. 8:26:02 AM REPRESENTATIVE DEAN WESTLAK, Alaska State Legislature, sponsor of HB 135. He thanked the committee for hearing the bill. He said HB 135 aims to do two things. It increases the original time limit to identify and secure matching funds from the current three-year window to five years. The bill will also allow the Commissioner of Education to grant time extensions for an additional three years if just cause is shown. It extends a time period for school districts to raise their percentage of shares for project costs appropriated through the Education Facilities Maintenance and Construction Fund for appropriations made under AS 37.05.560. Currently, school districts are required to raise a percentage share match of the total cost for projects within three years. However, since the adoption of a three-year time constraint in 1993, multiple projects have required more time to raise their required share. According to DEED the three-year time lapse, while appropriate for most projects, exceptions do exist when faced with extenuating circumstances. Previous and current examples include, but are not limited to, projects within the Northwest Arctic Borough, the Kenai Peninsula Borough, Yupik School District, Yukon Flats School District, and the Hoonah School District. When the legislature makes appropriations for this program, it is the intent to see the projects through to completion. This bill allows fluidity to account for real world hurdles that can slow projects down or prevent them from happening. REPRESENTATIVE WESTLAKE requested the committee's support for the bill. He noted they worked on it in the House where it passed unanimously. 8:28:39 AM SENATOR COGHILL asked about Section 1, "except for in (d) and (g)." He did not find (d) in the bill. JESSE LOGAN, Staff, Representative Dean Westlake, Alaska State Legislature, answered questions related to HB 135. He explained that (d) already exists in statute and (g) is being added as a new subsection. 8:30:33 AM SENATOR BEGICH explained that if a district with full value per ADM of $200,000 or less can demonstrate in writing that it is unable to provide the participating share it is allowed the exception. The bill references that existing exception. He did not know of any districts that had an ADM of $200,000 or less. He said it is a clean-up piece. SENATOR COGHILL said he understood. 8:32:00 AM REPRESENTATIVE WESTLAKE agreed it is a clean-up piece. The amendment changed it from a three-year floor to a five-year floor, with the exception of the Commissioner being able to extend for a three-year period if there is just cause. CHAIR HUGHES noted there will be times the extension will be needed and granted by the Commissioner. She asked if the Commissioner can make only one three-year exception and how it has it worked in the past. 8:32:43 AM MR. LOGAN explained that there has not been an exception piece previously; there was once case - the Hoonah major maintenance project in 2011 - where the Commissioner made an executive decision to reduce the matching share by $35,000 when they were unable to secure their match within the timeframe allowed. CHAIR HUGHES asked which districts this bill is important to. REPRESENTATIVE WESTLAKE said if they go to the five-year floor, all schools will be ok. He noted the road in NWASD is beyond their control. MR. LOGAN added that the Kivalina School and the Kachemak Selo project are up against the deadline. 8:34:09 AM CHAIR HUGHES asked if they are aware of other schools that would be running into the three-year problem. REPRESENTATIVE WESTLAKE thought there were others. 8:34:38 AM SENATOR BEGICH noted two other school construction projects potentially affected by the bill, one in the Lower Kuskokwim School District and one in the Yukon Koyukuk School District. 8:35:08 AM REPRESENTATIVE WESTLAKE thought there was also one from the Interior. 8:35:25 AM CHAIR HUGHES held HB 135 in committee. 8:35:41 AM At ease