HOUSE FINANCE COMMITTEE APRIL 18, 1997 8:15 A.M. TAPE HFC 97 - 105, Side 1, #000 - end. TAPE HFC 97 - 105, Side 2, #000 - end. TAPE HFC 97 - 106, Side 1, #000 - #060. CALL TO ORDER Co-Chair Gene Therriault called the House Finance Committee meeting to order at 8:15 A.M. PRESENT Co-Chair Therriault Representative Kelly Representative Davies Representative Martin Representative Davis Representative Moses Representative Foster Representative Mulder Representative Grussendorf Representatives Hanley and Kohring were not present for the meeting. ALSO PRESENT Representative Joe Green; Representative Fred Dyson; Jeff Logan, Staff, Representative Joe Green; Lisa Hoff, Staff, Representative Fred Dyson; Juanita Hensley, Chief of Motor Services, Division of Motor Vehicles, Department of Administration; Michael Ford, Attorney, Division of Legal Services; John George, National Association of Independent Insurers, Juneau; Mark Johnson, Director, Division of Emergency Medical Services, Department of Health and Social Services. TELECONFERENCE PARTICIPANTS Bruce Yates, Representative for the Anchorage Safe Committee Coalition, Anchorage; Marti Greeson, Executive Director, MADD, Anchorage; Peggy Hayashi, State Coordinator, Providence Hospital, Safety for Kids, Anchorage; Joan Diamond, Anchorage; Larry Wiget, Director of Governmental Relations, Anchorage School District, Anchorage; Peter Partnou, Anchorage School District, Anchorage; Barbara Njaa, Self, Kenai; Joanne Hardesty, Self, Anchorage; Lisa Sites, Self, Fairbanks; Ruth Ewig, Self, Fairbanks; Sharon Smith, Self, Fairbanks; Glenn Prax, Self, Fairbanks; Sharylee Zachary, Self, Petersburg. SUMMARY 1 HB 11 An Act relating to driver's licensing; and providing for an effective date. HB 11 was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Administration. HB 158 An Act relating to attendance at a public school on a part-time basis. HB 158 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Education dated 3/26/97. HOUSE BILL 11 "An Act relating to driver's licensing; and providing for an effective date." JEFF LOGAN, STAFF, REPRESENTATIVE JOE GREEN, noted that HB 11 would establish new rules for young drivers. Due to the high incidence of accidents, injury, and death among teenage drivers many states, and other political jurisdictions, are changing the rules which grant teenagers the "license" to drive. He added that one strategy to reduce young driver accidents is the provisional licensing system. HB 11 would establish a graduated system whereby a new, young driver must begin his/her progression to "driver-hood" with a learners permit, graduating to a restricted provisional license, and then if driving performance has been satisfactory during the provisional period, an unrestricted license would be awarded. Language in HB 11 would establish certain conditions during the provisional stage which include restrictions on nighttime driving, so that driving takes place in less dangerous circumstances. Several states have laws which limit teenagers from operating motor vehicles during late evening or early morning hours. Studies in these states have shown that nighttime restrictions have significantly reduced accidents. Mr. Logan concluded that the legislation would also be designed to allow the Division of Motor Vehicles to take full advantage of federal legislation establishing monetary incentives for states that implement programs for young drivers. HB 11 will help stop the teenage carnage on our highways. Mr. Logan provided a sectional analysis of HB 11. He noted 2 that Section #3, AS28.15.057, would establish who is required to hold the provisional license. Representative Foster voiced concern in how passage of the legislation would affect youth drivers in the rural village areas. JUANITA HENSLEY, CHIEF OF MOTOR SERVICES, DIVISION OF MOTOR VEHICLES, DEPARTMENT OF ADMINISTRATION, explained that in village areas which do not have access to a Division of Motor Vehicles (DMV) office, would have the option to come to the Juneau office or to be issued a restricted driver's licenses in the mail, not having to take a full fledged road test. Although, before these youths could drive in a large city, they would be required to take a behind-the-wheel test to show their proficiency of driving in traffic. She reiterated, these youth could receive the restricted license through the mail; the nighttime restrictions would be the same in the village areas as it would be in the cities. Representative J. Davies asked if there was a definition of "vehicular" way. Ms. Hensley reported that definition is provided in AS 28.4100.24: "Vehicular way area means a way, path or other area, highway or private property that is designated by official traffic control devices or customary usage and that is open to the public for the purposes of pedestrian or vehicle travel". Representative J. Davies referenced Page 2, Line 21, and asked if including "or" would be problematic. Ms. Hensley explained that language in context would be standard throughout the statute. REPRESENTATIVE JOE GREEN advised that in the wintertime, it could be safer to travel on a highway, as a vehicular way might not be maintained as well. Inclusion of that language allows the person to go the most safe route home. JOHN GEORGE, NATIONAL ASSOCIATION OF INDEPENDENT INSURERS, JUNEAU, noted that his organization has supported the legislation throughout the United States and that it has been adopted in a number of other states. The legislation has been successful at lowering the rate of young people's accidents. He noted that the legislation would restrict young people from driving during the early morning hours when it is most dangerous to drive. That is the time of night when the drunks are out and when the typically fatal accidents occur. Representative Foster asked if passage of the legislation 3 would bring down the insurance rates for kids. Mr. George believed that it would, noting that the rates are based on losses, so a downward trend in accidents would lower the rates. Mr. George added that insurance rates are determined by individual circumstances. He agreed with members that insurance is expensive. BRUCE YATES, (TESTIFIED VIA TELECONFERENCE), REPRESENTATIVE, ANCHORAGE SAFE COMMUNITY COALITION, ANCHORAGE, testified in support of the proposed legislation. He noted that he worked as a prevention specialist with the Anchorage School District. He agreed that the legislation would make Anchorage a safer place to live. In working with teenagers, he is informed about the injuries and deaths that occur each year among high school students. These youth are the highest age risk group in the municipality. Statistics indicate that young adults between the ages of 15 and 24 years old, are statistically involved in more motor vehicle deaths than any other age group. MARTI GREESON, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE DIRECTOR, MADD, ANCHORAGE, voiced support for the proposed legislation. She noted that she has worked in the "victim's service" field for twenty years. The grief associated with the loose of a child can be the most difficult to over come. Young people are involved in over twice the number of crashes per mile driven as are experienced adult drivers. Those crashes occur mostly between midnight and 5 A.M. She urged Committee members to adopt the proposed legislation. PEGGY HAYASHI, (TESTIFIED VIA TELECONFERENCE), STATE COORDINATOR, SAFETY FOR KIDS, PROVIDENCE HOSPITAL, ANCHORAGE, voiced support for the legislation. She testified that the legislation would provide an opportunity for the Legislature to help kids. JOAN DIAMOND, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, echoed support for the proposed legislation and its intent to hold juveniles accountable for their licensing. MARK JOHNSON, CHIEF, EMERGENCY MEDICAL SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, noted that the Department supports the legislation and sees it as a step toward better public health. He pointed out that other states who have adopted similar legislation have indicated a reduction in crashes for the youth population by 16%. Ms. Hensley summarized that the fiscal note indicates total operating costs of which $77 thousand dollars would be a federal grant. The National Traffic Highway Administration offered incentives to states to look into such a system. Alaska and North Carolina were the only two states, at that 4 time, which had undertaken such a study. Consequently, Alaska received a grant for $77 thousand dollars. Representative Mulder noted that implementation would provide a net positive of $120 thousand dollars per year for the State. Representative G. Davis MOVED to report HB 11 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HB 11 was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Administration. HOUSE BILL 158 "An Act relating to attendance at a public school on a part-time basis." REPRESENTATIVE FRED DYSON stated that HB 158 would prohibit public school districts from discriminating against part- time Alaskan students. The Alaska State Constitution, Article VII, states: "The legislature shall by general law establish and maintain a system of public schools open to all children of the State....". He added, the Alaska Administrative Code makes provisions and establishes a funding mechanism for part-time students. When the Attorney General's office prepared the current state statutes for part-time students and the foundation formula reimbursement for part-time students, it was anticipated that every school would fulfill the constitutional mandate and not discriminate against the part-time student. Representative Dyson pointed out that on April 14, 1997, the State Board of Education unanimously endorsed HB 158. They strongly encouraged public schools to provide educational service to all local qualified students including the home schooled, correspondence, and private school students. Representative Dyson concluded that every school district in the State accepts part-time students from the home, correspondence and private school communities except the Anchorage School District (ASD). ASD has reasoned that providing an educational benefit to an individual child might accrue as a benefit to some private school and thus 5 raise constitutional concerns. The Legislative legal staff as well as the Attorney General's office maintain that there is no constitutional issue at stake. (Tape Change HFC 97-105, Side 2). Representative J. Davies questioned how funding of the students would affect the public school system. Representative Dyson replied that the Administrative Code has for over a decade allowed for reimbursement of the foundation formula. If a student takes a one hour class, the school district is reimbursed for a 25% credit toward full time; it progresses to the point that a four hour class is reimbursed for 100% credit. SHARYLEE ZACHARY, (TESTIFIED VIA TELECONFERENCE), SELF, PETERSBURG, spoke in support of the proposed legislation as a home-school parent. She supported the rights of a home- schooled child being able to attend part-time classes through the public school system. LARRY WIGET, (TESTIFIED VIA TELECONFERENCE), DIRECTOR OF GOVERNMENT RELATIONS, ANCHORAGE SCHOOL DISTRICT, ANCHORAGE, spoke in opposition to the legislation. He stated that the Anchorage Public School questions the constitutionality of the legislation. He advised that it would violate the Alaska Constitution prohibition against providing direct benefits for private schools and appropriating funds for public purposes. Mr. Wiget addressed the administrative burden the legislation would create. He pointed out that the 2000 home-schooled and private schooled children in the ASD would be "picking and choosing" from the courses in the public school district, essentially down-grading the overall quality of education for the full time students. He believed that the part-time students would seek to enroll in those courses that have higher costs associated to them. In conclusion, those districts where admission of part-time students has been identified as a benefit to both students of the public schools, could be pursuing the risk of a constitutional legal challenge. ASD believes that passage of HB 158 would be bad public policy. Representative Kelly argued that private school parents should have access to the public school system facilities. Representative Mulder agreed. PETER PARTNOU, (TESTIFIED VIA TELECONFERENCE), ATTORNEY, ANCHORAGE SCHOOL DISTRICT, ANCHORAGE, spoke to the constitutional issue of the concern. He noted that the 6 Alaska Supreme Court would rule if it was constitutional or not; the Montana Supreme Court was faced with a similar issue in which they ruled that it could not be made mandatory. He believed that the Alaska Supreme Court would arrive at that same conclusion. The impact of the legislation in the Anchorage School District would be a major egress for the public school system; it would not be a gain for public school students. BARBARA NJAA, (TESTIFIED VIA TELECONFERENCE), SELF, KENAI, spoke in favor of the proposed legislation as a parent of a home-schooled child. She emphasized that home schooling is hard work and expensive. She noted that she resented paying into the public school system, while not being able to use it's advantages such as the athletic and computer programs. She urged members to favorably consider passage of the legislation. JOANNE HARDESTY, (TESTIFIED VIA TELECONFERENCE), SELF, KENAI, commented that children should be entitled to use the school system at whatever degree they desire as it is a "public" system. It is the responsibility of the school district to educate our children at whatever degree they need. She felt that these students should be able to attend class without discrimination. LISA SITES, (TESTIFIED VIA TELECONFERENCE), SELF, FAIRBANKS, spoke in support of the legislation from the perspective of a mother who home-schools her children. She recommended changing the language on Page 1, Line 5, from "allow" to "not deny". RUTH EWIG, (TESTIFIED VIA TELECONFERENCE), SELF, FAIRBANKS, spoke in support of the proposed legislation. She commented that she home-schools her children, while at the same time pays $3 thousand dollars a year toward public education. She suggested that the money should "follow the child". The legislation would establish a standard where the State is not left in the role of being the "big brother". SHARON SMITH, (TESTIFIED VIA TELECONFERENCE), SELF, FAIRBANKS, spoke in support of the proposed legislation. She echoed considerations of the previous testimony of home- school parents. She emphasized that education should be a choice and that every parent should have the authority to decide where and how to educate their child. If a parent decides to use the public school system, they should be able to use it to the degree that they so deem. GLENN PRAX, (TESTIFIED VIA TELECONFERENCE), SELF, FAIRBANKS, spoke in support of the bill which establishes partnerships 7 between parents and schools. He pointed out some parents that are home-schooling, lack the confidence or resources to completely educate their child. Those parents would appreciate the opportunity to have their child educated by the public school system for some topics. He urged the Legislature to support this concept as it will improve the quality of education while at the same time improves the bond between parents and their children and saves the State money. MICHAEL FORD, ATTORNEY, DIVISION OF LEGAL SERVICES, spoke to the question of the constitutionality of the proposed legislation. He commented that Legal Services concluded that no constitutional problems exist with the legislation. That position is supported by the Attorney General's office. He agreed that an argument does exists regarding the concern; the court will look at what constitutes a direct benefit. The relationship between public school students and the private school system in the State does not constitute a direct-benefit. No money flows to the private schools, while at the same time, the Constitution requires that the public school system be open to all students. Mr. Partnou advised, in initial discussions regarding the legislation, Representative Dyson had questioned whether it should address only home-schooled children or be open to those children in private school system. Mr. Partnou agreed that the constitutional issue would be more clear when addressing private school students only. With regards to correspondence students, no a clear constitutional circumstance currently exists. The other possible constitutional problem would be in addressing the "entanglement" concern. The public school district is responsible for the attendance of their students. Representative Kelly questioned whose job it was to enforce free public education. Mr. Ford stated that we have rights guaranteed in the Constitution. Generally, it is the Courts responsibility to "flush out" those rights. There is a provision that states: "Public education will be available to all children of the State". It would be a Court decision to rule if that meant part-time enrollment. Mr. Partnou commented, the compulsory education laws require that school age students be attending school. If the 8 student is enrolled, they are meeting the compulsory education requirement in which the school system is responsible. Representative Mulder inquired ASD's response should the legislation pass. Mr. Wiget responded that they would follow the letter of the law, although, he anticipated outside challenges to be filed. Currently, there are no part-time students attending the Anchorage School District. Representative J. Davies questioned the language change recommended in previous testimony, deleting "allow", inserting "not deny". (Tape Change HFC 97-106, Side 1). Mr. Ford explained that most legislation is written in the affirmative. He felt that "allow" would be inclusive enough. Representative Martin MOVED to report HB 158 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HB 158 was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Education dated 3/26/97. ADJOURNMENT The meeting adjourned at 9:50 A.M. 9