1:39:35 PM SB 281-SCHOOL DIST. ENROLLMENT SHARING/CORRESPON  CHAIR DYSON announced SB 281 to be up for consideration. WES KELLER, Legislative aide to Senator Dyson, said that SB 281 authorizes any school district in the state to enroll students from across the state under the following conditions: the program must be chosen by the resident district and parents, and there must be a cooperative legal agreement between the district the student comes from and the district in which the student is enrolling to provide the school facility and supervision of the child. If these conditions are met, the enrolling school would receive 100 percent state funding for that child. Otherwise the enrolling school would only receive 80 percent of state funding, which is the current funding level for correspondence education. 1:42:03 PM CHAIR DYSON remarked that the Attorney General's (AG) office recently issued an opinion stating that while there is nothing in current statute to preclude the aforementioned cooperation between districts, there is a significant chance it could be challenged because our current statutes regarding education were founded around the presupposition that each district has complete control over education for all of the students in it. He said that SB 281 makes it clear that districts could enter into cooperative agreements across district lines. He said that the legislation would allow failing districts to enter into cooperative agreements with other districts to satisfy the requirements of the No Child Left Behind Act (NCLBA), most importantly those pertaining to parental choice. It would also allow smaller schools to cooperate with other districts to establish virtual classes on specific subjects such as art and foreign languages. SENATOR OLSON asked whether students in private schools could participate in these programs. MR. KELLER replied that private students would not be allowed to participate unless they enroll in a public program. 1:45:32 PM SENATOR OLSON asked whether the legislation would have an adverse affect on private education. MR. KELLER replied that it would not, but added that it may create competition between public and private schools. 1:46:38 PM CHAIR DYSON added that this bill would not preclude private school students from enrolling in virtual classes offered through public schools. SENATOR GREEN asked where the bill requires the permission of both school districts. 1:48:18 PM MR. KELLER replied that it appears on section 5, page 2, lines 22 through 30. SENATOR GREEN asked whether the bill requires a mutual agreement for enrollment or a mutual agreement for 100 percent funding. MR. KELLER replied that the student could not enroll in a different district if his home district does not agree to allow it. CHAIR DYSON added that in order for the enrolling district to receive 100 percent funding, there must be a mutual agreement between the districts. SENATOR GREEN asked whether there are any schools in the state that accept students from other districts. MR. KELLER replied that Alyeska Central School offers distance education to students from all over the state, but that currently no schools in the state accept non-correspondence students from other home districts. SENATOR GREEN asked whether the bill would apply to existing schools that serve out of district students. MR. KELLER replied that the successor of the Alyeska School is a leading example of what this bill explicitly allows. However, there is some question of whether their current operations are appropriate because, according to an AG opinion a local school district operating within its own boarders is the foundation of the state education system. CHAIR DYSON remarked that this bill explicitly authorizes cooperative agreements between districts on purchasing, building maintenance and renovation. SENATOR ELTON asked whether anything in the legislation prohibits, for example, the Juneau School District from opening a brick and mortar school in Gustavus. He asked whether the student attending that school would be funded at 80 or 100 percent. MR. KELLER replied that they would be funded at 80 percent unless the home district provides the supervision of the child. He added that since the school would receive only 80 percent of regular state funding, there would be no incentive for a district to open a brick and mortar school in another district. SENATOR ELTON referenced the following from the AG's opinion: The local school district operating within its boarders is the foundation of the state's educational system; K-12 is, by statutory design delivered locally. He remarked that legislation that would allow a district to open a brick and mortar school in another district seems to directly conflict with the AG's opinion. MR. KELLER remarked that the AG's opinion is only an interpretation of existing law. 1:57:39 PM SENATOR ELTON expressed concern that this legislation would allow for a significant change in state policy. CHAIR DYSON replied that he thought a change in state policy is in order. He said that this bill would allow a school failing the standards of the NCLBA to enlist the support of a well- managed school district. 2:00:06 PM SENATOR ELTON reiterated that this legislation would create a significant change in state policy by allowing a school district to operate a brick and mortar school in another district without a contractual arrangement with the local district. CHAIR DYSON responded that it accommodates the requirements of the NCLBA in that it gives parents the choice of removing their child from a failing school. 2:01:38 PM SENATOR WILKEN suggested testing the concept behind the legislation in a few districts before applying it to the entire state. 2:03:48 PM SENATOR GREEN asked Mr. Keller to point out where the bill requires a cooperative agreement between districts. MR. KELLER replied that before proceeding further, he would like some time to work on the bill. SENATOR ELTON concurred with Mr. Keller's suggestion and added that it would be beneficial for the committee to hear the opinion of some of the districts before proceeding with it. CHAIR DYSON moved to adopt version I as the committee's working document. There were no objections and it was so ordered. He held SB 281 in committee.