SB 103-RESIDENTIAL PSYCHIATRIC EDUCATION FUNDING  3:02:07 PM CHAIR MCGUIRE announced the consideration of SSSB 103. She noted this is the first hearing and version I is before the committee. 3:02:24 PM SENATOR COGHILL moved Amendment 1, labeled 29-LS0733\I.2. AMENDMENT OFFERED IN THE SENATE BY SENATOR COGHILL TO: SSSB 103 Page 1, line 1, following "Act": Insert "relating to school districts;" Page 2, line 9, following "treatment;": Insert "and" Page 2, line 12: Delete "; and" Insert "." Page 2, lines 13 - 15: Delete all material. Page 2, line 20, following "(a)": Insert "A school district may enter into a contract to provide payments to a residential psychiatric treatment center that provides an educational program for a student admitted to the center. If a school district and a residential psychiatric treatment center are unable to agree on a proposed contract on or before January 1 immediately preceding the first school year for which the residential psychiatric treatment center is seeking funding, the school board where a student who is admitted to the center is enrolled shall enter into a contract with the center as provided in (b) of this section. (b)" Reletter the following subsections accordingly. Page 2, line 26: Delete "(b)" Insert "(c)" Page 3, line 6: Delete "(b)(21)" Insert "(c)(21)" Page 4, line 14: Delete "(a)" Insert "(b)" Page 4, line 24: Delete "(a)" Insert "(b)" Page 4, line 30: Delete "(a)" Insert "(b)" Page 5, line 15: Delete "AS 14.30.800" Insert "AS 14.30.800(f) - (g)" Page 5, line 17: Delete "AS 14.30.800(b)" Insert "AS 14.30.800(c)" 3:02:46 PM At ease 3:03:29 PM CHAIR MCGUIRE reconvened the meeting and objected for the purpose of an explanation of Amendment 1 for SB 103. SENATOR COGHILL said the amendment adds "relating to school districts" to the title, deletes the uniform requirements provision on page 2, paragraph (7); and inserts language that a school district may enter into a contract that provides payments to a psychiatric treatment center. If a school district chooses not to enter into a contract, the school board where the child is admitted may enter into a contract with the treatment center. He explained that the amendment is based on an existing contract in his district. Recognizing there are differing opinions as to how this should be handled in other districts, there is an avenue of appeal. He stated he disagrees with the legal memorandum that indicates that the state interest may not be provided. 3:05:57 PM SENATOR CATHY GIESSEL, Alaska State Legislature, sponsor of SB 103, said she has no objection to Amendment 1. SENATOR COSTELLO questioned what the added language on page 2, line 20, actually achieves. SENATOR COGHILL replied it provides an appeal option. The school boards set the standards and will enter into the contract if the school district and treatment facility fail to agree. 3:08:09 PM SENATOR COSTELLO said she'd like to hear from the drafter because it appears that the requirements the bill sets out do not apply if you go through the school board, but they do apply if you go through the school district. SENATOR COGHILL said his expectation is that a school district would enter into a contract based on whatever the school board had established as standards for that community. If there's a direct appeal to the school board, he imagines the same standard of education would be applied. SENATOR COSTELLO asked if the contract would be with the district where the student comes from. SENATOR COGHILL answered yes. SENATOR COSTELLO listed the number of students who would be affected from the different school districts and asked if the intention is to have a separate contract for each district. SENATOR COGHILL said that's his understanding. 3:10:16 PM EVELYN ALSUP, Educational Director, North Star Behavioral Health, clarified that the contracts would only be with the district where the facility is located, not each individual district. Amendment 1 allows the Fairbanks North Star Borough and a local treatment facility to continue to contract as they have for 20 years, with the standard set forth by the local school board. SENATOR COGHILL agreed with the explanation. SENATOR COSTELLO asked to hear what the Anchorage School District thinks about the amendment. CHAIR MCGUIRE asked Superintendent Graff to comment on Amendment 1. 3:11:54 PM MICK GRAHAM, Chief Academic Officer, Anchorage School District said Superintendent Graff isn't available at the moment and they hadn't seen the amendment. He pointed out that there is a unique difference between the ways that the Anchorage School District and the Fairbanks North Star Borough School District work with North Star Behavioral Health. Fairbanks has only long-term care and the Anchorage facility has both long-term care and shorter term, acute care. SENATOR COSTELLO said his response isn't addressed to the amendment and perhaps the sponsor of the amendment could provide an explanation. SENATOR COGHILL explained that the amendment is meant to help an appeal process in the Anchorage district and to accommodate the existing contracts in the Fairbanks district. He opined that the operative part for Anchorage is the appeal option if the school district and the treatment center don't agree on a contract. In that circumstance, the school board enters into a contract with the treatment center as provided in subsection (b), which lays out the qualifications of the treatment center. SENATOR GIESSEL said she was just apprised that Superintendent Graff has seen the text of Amendment 1 when it was added to the House version of the bill. SENATOR COSTELLO summarized that the amendment would allow the school district to enter into a contract but if it isn't signed before January 1 preceding the first school year, the school board may enter into a contract. She asked if the school board would approve a contract that the school district entered into. MR. GRAHAM said Superintendent Graff had returned. CHAIR MCGUIRE asked Superintendent Graff if he'd heard the explanation and Senator Costello's question. ED GRAFF, Superintendent, Anchorage School District, Anchorage, Alaska, said the amendment is inappropriate because it provides the school board the statutory right to appeal the school district's decisions to the commissioner and the Board of Education. His research indicates that no other private vender is afforded this type of appeal in Alaska's public education system. He relayed that on March 18 he submitted a letter to the House Education Committee outlining the concerns with the amendment. CHAIR MCGUIRE said she understands the opposition and there is a letter in the packet clarifying the Anchorage School District's opposition. 3:18:23 PM CHAIR MCGUIRE asked Senator Costello if she maintains her objection. SENATOR COSTELLO said yes. CHAIR MCGUIRE asked for a roll call. A roll call vote was taken. Senators Micciche, Coghill, and McGuire voted in favor of the motion to adopt Amendment 1 to SB 103 and Senators Wielechowski and Costello voted against it. Therefore, Amendment 1 was adopted by a 3:2 vote. 3:19:16 PM SENATOR COGHILL moved Amendment 2, labeled 29-LS0733\I.3. AMENDMENT 2 OFFERED IN THE SENATE BY SENATOR COGHILL TO: SSSB 103 Page 6, line 8: Delete "2019" Insert "2020" CHAIR MCGUIRE objected for discussion purposes. SENATOR WIELECHOWSKI asked if the amendment extends the time the bill will remain in effect. 3:19:36 PM KARI NORE, Staff, Senator Cathy Giessel, Alaska State Legislature, said that's correct. It conforms to Amendment 1 and ensures a full three-year pilot project. 3:19:55 PM SENATOR WIELECHOWSKI objected, based on his objection to Amendment 1. CHAIR MCGUIRE removed her objection and asked for a roll call. A roll call vote was taken. Senators Micciche, Coghill, Costello and McGuire voted in favor of the motion to adopt Amendment 2 to SB 103 and Senator Wielechowski voted against it. Therefore, Amendment 2 was adopted by a 4:1 vote. 3:20:49 PM At ease 3:21:00 PM CHAIR MCGUIRE reconvened the meeting and opened public testimony. 3:21:21 PM CAELA NIELSEN, Parent, North Star student, testified in support of SB 103. She described her background as an educator and her son's disorders and the services provided for him by the Anchorage School District. She recalled his suspension when he was 13 and the process they followed in his individual education plan (IEP) in the regular school district. He was in various treatment programs, including North Star and Palmer, which put him behind in school. He ended up in a manic state and tried to overdose. She recalled his history in and out of treatment centers. She listed what she needed for her son and what she hoped to receive for him at treatment centers. She strongly encouraged support for the educational project found in SB 103. CHAIR MCGUIRE asked Ms. Nielsen to submit her comments in writing. 3:28:37 PM SENATOR COGHILL moved to report SSSB 103, as amended, from committee with individual recommendations and attached fiscal note(s). 3:28:50 PM SENATOR WIELECHOWSKI asked Mr. Graff if he supports the bill. MR. GRAFF stated that the Anchorage School District does not support SB 103. 3:29:30 PM CHAIR MCGUIRE announced that without objection, CSSSSB 103(JUD) is reported from Senate Judiciary Standing Committee.