SB 34-STATE-TRIBAL EDUCATION COMPACT SCHOOLS  9:53:15 AM CHAIR HOLLAND reconvened the meeting and announced the consideration of SENATE BILL NO. 34 "An Act providing for the establishment of public schools through state-tribal compacts." 9:54:07 AM CHAIR HOLLAND solicited a motion to adopt the proposed committee substitute (CS) for SB 34. 9:54:11 AM SENATOR STEVENS moved to adopt SB 34, work order LS-0309\B, as the working document. 9:54:23 AM CHAIR HOLLAND objected for purposes of discussion. 9:54:31 AM TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State Legislature, Juneau, Alaska, stated that when collaborating with Ms. Kitka and the Alaska Federation of Natives' team, six requirements were considered essential to tribal education compacting. These six elements were then sent to Legislative Legal Services for rendering. He said the CS is intended to streamline and simplify the project. It is meant to be flexible and maximize autonomy while maintaining accountability. It is silent on several statutes other school districts in Alaska must follow. The six elements are: First, the Department of Education and Early Child Development (DEED) commissioner would establish a demonstration project or pilot program that would sunset. Second, the commissioner would use that project to enter compacts with tribes and tribal organizations to operate schools. Third, those schools would observe non-discrimination laws. Fourth, the annual reporting for the project would include the number of schools participating, enrollment, attendance, student performance through assessments, and recommendations for compact changes. Fifth, compact schools should be formed into districts. Being termed a district is key for calculating school funding, Title 1470, basic daily membership, and area cost. Sixth, federal, state, and tribal funding would be held harmless. MR. LAMKIN stated SB 34 is not a finished product, but it fulfills his obligation to provide a working document to the committee. He emphasized that the use of the term school district triggers many of the definitions throughout statute. 9:57:16 AM MR. LAMBKIN provided the sectional analysis as follows: Overall Summary: Version B of SB34 is intended to simplify the proposed State-Tribal Education Compacting program. This version attempts to be less prescriptive, to set up a pilot program, or demonstration project, with general authority for the state and tribes to negotiate individualized and culturally responsive education compacts, and to periodically review and possibly sunset the program over time. A. Sections 1 and 2: Creates within a year of the effective date, and sunsets state-tribal education compacting in 2028. Rationale: To establish compacting as a pilot program or demonstration project, and to review its efficacy over time. 9:58:09 AM SENATOR BEGICH questioned whether a sunset date of 2028 would be enough time for a demonstration project to show change. He stated the Finance Committee debated yesterday the time needed to show improvement regarding SB 111. He asked if the year 2028 would be long enough for the project to exhibit significant change. MR. LAMKIN replied that Ms. Kitka specifically requested five years. 9:58:55 AM SENATOR BEGICH replied that he would like to hear from Ms. Kitka because SB 34 will go to the Finance Committee, where there will be concern about the time needed to show progress and how progress will be determined. 9:59:41 AM At ease. 10:00:34 AM CHAIR HOLLAND reconvened the meeting. 10:00:39 AM SENATOR STEVENS stated he thought Ms. Kitka's recommendation of five years was wise. The point of the pilot program is expansion if it is successful. Waiting too long to ascertain success could slow progress for other schools. SENATOR BEGICH stated that the early education pilot program was 12 years. It has still not been adopted. He said he would like to know the criteria. 10:02:15 AM JULIE KITKA, President, Alaska Federation of Natives (AFN), Anchorage, Alaska, stated she supports a five-year project. The AFN would like a chance to prove the concept of tribal compacting in education. She said she is amenable to an optional five-year extension if that addresses legislators' concerns. She said that the desire is to build great support for the concept, so it does not take more than five years. 10:03:28 AM MR. LAMKIN continued the sectional analysis: B. Section 3, Page 2, line 15: AS 14.16.300(a), Adds that the commissioner may enter into compacts with federally recognized tribes or tribal organizations. Rationale: To allow for a tribal organization, like a consortium or regional non-profit native organization, which may not itself be a federally recognized tribe, to be empowered by a federally recognized tribe or tribes, to participate in the education compacting program. C. Deleted from version A (page 2, lines 8-20): strikes the requirement of a detailed application process for initiating a compact. Rationale: consistent with the overall intent of Version B, to simplify the program and direct such processes to be determined by regulation. D. Page 2, line 19: changed that compacts may, rather than shall, include provisions for compliance, notices of violation, dispute resolution, record keeping, auditing, and other common terms of a contract. Rationale: to make the program more simple and flexible. E. Deleted from version A (page 3, lines 5-8): regarding AS 14.03.030-050 and AS 14.03.083-400, removed the requirement for compacts to specify provisions pertaining to setting school term, days in sessions, school holidays, contracting, procurement, advocacy of partisan, sectarian or denominational doctrines, part-time school attendance, use of school facilities, search of school lockers, administering survey and questionnaires, the AK Performance Scholarship eligibility, parental access to school records, annual reporting and participation in the "School District Report Card," the Improving School Performance scholarship program, funding for internet services, display of U.S. flag and Pledge of Allegiance, and conducting emergency drills.   Rationale: to simplify the program; to keep the program flexible, improve autonomy, and be culturally responsive. Removing the requirement does not necessarily mean such terms cannot or will not be manifested either in a compact or by tribal policy. F. Page 3, line 20, relating to AS 14.14.140(b), employment of a superintendent's family, adds "except by written approval of the commissioner." Rationale: primarily a conforming change, aligned with the existing statute, but substituting commissioner in lieu of local governing school board. 10:06:04 AM G. Deleted from version A (page 3, line 30 to page 4,  lines 1-12): Struck requirements relating to teacher employment, retirement, sick leave, tenure, salaries, sabbatical leave, collective bargaining.   Rationale: to simplify the program; to keep the program flexible, improve autonomy, and be culturally responsive. Removing the requirement does not necessarily mean such terms cannot or will not be manifested either in a compact or by tribal policy. H. Deleted from version A (page 4, lines 13-19): Struck requirements relating to student educational programs, services for students with disabilities, health education standards, and bilingual and bicultural programs.   Rationale: to simplify the program; to keep the program flexible, improve autonomy, and culturally responsive. Removing the requirement does not necessarily mean such terms cannot or will not be manifested either in a compact or by tribal policy. I. Page 4, lines 15-18, relating to financial  provisions, added: (e).."A compact school may accept federal funds through federal programs. Nothing in this section prohibits the department from receiving federal funds for state-based functions that support the provisions of AS 14.16.300-350." [state-tribal education compact schools].   Rationale: to hold any existing state-federal- tribal funding harmless. J. Deleted from version A (page 5, lines 11-12): "The employee of a state-tribal education compact school are state employees."   Rationale: to conform with other provisions of the program relating to teacher employment and retirement, and to avoid likely loopholes created by not striking this reference. 10:07:43 AM K. Page 4, line 21, relating to Employment, adding that a compact may provide employment preference to members of a federally recognized tribe or tribal organizations. Rationale: Conforming with the change described in B above, to allow for a tribal organization, like a consortium or regional non-profit native organization, which may itself not be a federally recognized tribe, to be empowered by a federally recognized tribe or tribes, to participate in the education compacting program, and be able to apply an employment preference accordingly. L. Page 4, lines 22 to Page 5, lines 1-7, adds a new subsection [AS 14.16.350] establishing a reporting requirement. The report is to be submitted to the Legislature annually and include information such as the number of participating compact schools, attendance levels, assessments and student performance. M. Sections 4 and 5: At the effective date, includes state-tribal compact schools as eligible recipients of school funding appropriated from the Public Education Fund, and sunsets their eligibility along with the whole program in 2028. Rationale: To establish compacting as a pilot program or demonstration project, and to review its efficacy over time. N. Sections 6 and 7: Conforming amendment, includes state-tribal compact school funding being prorated in the event of the Public Education Fund being underfunded, and sunsets this provision along with the whole program in 2028. Rationale: To establish compacting as a pilot program or demonstration project, and to review its efficacy over time. 10:04:12 AM O. Sections 10 and 11: Conforming amendment relating to compulsory school age, exempts students of state-tribal education compact schools, and sunsets the exemption along with the whole program in 2028. Rationale: To establish compacting as a pilot program or demonstration project, and to review its efficacy over time. P. Sections 12-18: Conforming amendment relating to the definition of "school district" generally, so as to include state-tribal education compact schools as a "school district" except for those policy areas described under R, below, and sunsets the definition along with the whole program in 2028.   Q. Deleted from version A (page 8, lines 1-16): Strikes requirements related to special education and related services for children with disabilities. Rationale: to conform with other provisions of the program relating to student services, to avoid likely loopholes created by not striking this reference. Removing the requirement does not necessarily mean such terms cannot or will not be manifested either in a compact or by tribal policy. R. Deleted from version A Sections 12-21 Strikes reference to a state-tribal education compact school for purposes of: 1. the insurance education tax credit program (AS 21.96.070); 2. arbitration for employees under collective bargaining agreements (AS 23.40.200); 3. contributions to and service in the Public Employee Retirement System (AS 39.35); 4. Corporate Income Tax Credit for educational program investments (AS 43.20.014); 5. Relating to school district reimbursement for certain medical services furnished to students with disabilities (AS 47.07.063).   Rationale: To establish compacting as a pilot program or demonstration project, and to review its efficacy over time. These considerations may already be captured by tribal entities using alternative approaches, and may also be revisited either as we go through the legislative process or when the program is reviewed in the future. S. The State-Tribal Education Compacting program is repealed June 30, 2028. 10:10:30 AM MR. LAMKIN stated that the sunset of a program is like an audit. A review of the program is done with the program's board. The tribal education pilot project would likely be reviewed in 2027, and then bills would be used to extend the program until the sunset provision was repealed. SENATOR STEVENS reminded the committee that Commissioner Johnson brought the Alaska Challenge Group together two years ago to recommend where Alaska public education should be headed. One of the recommendations was tribal compacting. Pursuing the recommendation has proven that it is a highly complex issue. He appreciates Mr. Lamkin's work in determining what to include and exclude. Ms. Kitka then recommended that a pilot program be tried. He stated it is important to understand how SB 34 has progressed. 10:12:04 AM CHAIR HOLLAND asked if Ms. Kitka would like to make any comments regarding the sweeping changes to SB 34. He asked if she and the AFN had time to discuss the changes and if she believed the committee substitute would satisfy the stakeholders' goals. MS. KITKA stated that the AFN supports the committee substitute, excepting minor technical changes. She fully supports using the compacting mechanism to create greater efficiencies and resources. However, the primary purpose would be the transformative change in innovation. Innovation needs to be incentivized to benefit Native students. Commissioner Johnson and the AFN are 100 percent in alignment that the interests of children should come first. Coming out of the pandemic is an opportune time to push forward with the transformation and improve tribal compacting over time. She stated that she appreciates the input to increase the sunset date of the project. However, the real need is legislation granting the commissioner permission to engage in compacting negotiations. The AFN is also seeking the federal government to be engaged. 10:14:31 AM MS. KITKA stated that the Senate Indian Affairs Committee would hold a field hearing on February 24. There are items the AFN would like the federal government to change that will have implications on SB 34. For example, there are prohibitions against using federal resources for school facilities. She declared that is wrong, federal resources should be allowed to help village schools. Tribal compacting of schools needs legislative permission to enable the commissioner to open negotiations on the demonstration process with as much flexibility as possible. She maintained that the federal government must step in with its responsibility and allow support for incorporating indigenous knowledge into curriculum, teacher training, and facility funding. She said compacting can be viewed as a hybrid of the federal government upholding its agreement to support indigenous people and the state taking the leadership role in launching the demonstration project. 10:15:49 AM SENATOR BEGICH clarified that he did not prefer to extend the time for the demonstration project. He only wanted to ensure stakeholders were satisfied with the five-year timeframe for the project. 10:16:26 AM SENATOR HUGHES asked if the demonstration project would be more than one school. MS. KITKA replied that it would involve multiple schools. There is statewide interest in participating, so the demonstration could be a community, region, or diverse school locations. She stated that the Bureau of Indian Affairs model for compact funding would be used. Ten demonstration projects were opened in the first year, with ten more added each year. She stated the commissioner and education board would decide the number of schools to start the program. 10:17:40 AM CHAIR HOLLAND removed his objection. 10:17:55 AM CHAIR HOLLAND found no further objection, and CSSB 34, work order 32-LS0309\B, was adopted. 10:18:09 AM SENATOR BEGICH stated he had numerous questions regarding SB 34. CHAIR HOLLAND replied that the questions could be asked at the next meeting on SB 34. 10:19:04 AM CHAIR HOLLAND held SB 34 in committee.