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CSHB 535(HES): "An Act relating to postsecondary education; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 535(HES)                                                                                          
01 "An Act relating to postsecondary education; and providing for an effective                                             
02 date."                                                                                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 08.02.025(a) is amended to read:                                                                    
05  (a)  A person licensed under this title shall comply with the student loan                                            
06 repayment provisions under AS 14.43 that are applicable to the person.                                                  
07 Notwithstanding another provision of law, a license issued to a person under this title                                 
08 may not be renewed if the licensee [BORROWER] and the department                                                    
09 [DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT] have                                                                  
10 received notice from the Alaska Student Loan Corporation [COMMISSION ON                                               
11 POSTSECONDARY EDUCATION] that the licensee is in default on a student loan                                              
12 provided to the licensee.  This action may be taken no sooner than 60 days after the                                    
13 Alaska Student Loan Corporation [COMMISSION ON POSTSECONDARY                                                          
14 EDUCATION] has notified the licensee [BORROWER] of the default status of the                                          
01 loan as provided under AS 14.43.120(i).  If a licensee's [AN] appeal of a                                             
02 determination of default status is pending [ON BEHALF OF THE LICENSEE], the                                             
03 Alaska Student Loan Corporation [COMMISSION ON POSTSECONDARY                                                          
04 EDUCATION] shall notify the department and the department [RENEWAL] may not                                          
05 deny renewal [BE DENIED] under this section until and unless the [APPEAL HAS                                           
06 BEEN CONCLUDED AND THE] default status has been affirmed on appeal.  The                                           
07 denial [DENIAL] of renewal of a license shall continue until the department                                          
08 [DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT] receives                                                              
09 notice from the Alaska Student Loan Corporation [COMMISSION ON                                                        
10 POSTSECONDARY EDUCATION] that the licensee is no longer in default on the                                               
11 student loan.                                                                                                           
12    * Sec. 2.  AS 14.40.170(b) is amended to read:                                                                       
13  (b)  The Board of Regents may                                                                                         
14   (1)  adopt reasonable rules, orders, and plans with reasonable penalties for                                         
15 the good government of the university and for the regulation of the Board of Regents;                                   
16   (2)  determine and regulate the course of instruction in the university with                                         
17 the advice of the president;                                                                                            
18   (3)  set student tuition and fees;                                                                                   
19   (4)  receive and spend university receipts in accordance with AS 37.07                                              
20 ( [THE] Executive Budget Act);                                                                                        
21   (5)  enter into agreements with government or postsecondary                                                          
22 education officials of this state or other states to provide postsecondary educational                                  
23 services and programs to residents of this state pursuing a medical education; an                                       
24 agreement with another state must be limited to services and programs that are                                          
25 unavailable in this state [(AS 37.07)].                                                                                
26    * Sec. 3.  AS 14.42.100 is amended to read:                                                                          
27  Sec. 14.42.100.  CREATION OF ALASKA STUDENT LOAN                                                                      
28 CORPORATION.  The [THERE IS CREATED THE] Alaska Student Loan                                                          
29 Corporation is created as [. THE CORPORATION IS] a public corporation and                                             
30 government instrumentality within the Department of Revenue [EDUCATION] but                                           
31 having a legal existence independent of and separate from the state.  The corporation                                   
01 may not be terminated as long as it has outstanding bonds, notes, or other obligations                                
02 [OUTSTANDING].  Upon termination of the corporation, its rights and property pass                                       
03 to the state.                                                                                                           
04    * Sec. 4.  AS 14.42.120 is repealed and reenacted to read:                                                           
05  Sec. 14.42.120.  CORPORATION GOVERNING BODY.  (a)  The corporation                                                    
06 shall be governed by a board of directors consisting of the commissioner of revenue,                                    
07 the commissioner of administration, a person representing the department appointed                                      
08 by the governor, and four members of the public appointed by the governor.  The                                         
09 governor's appointees shall serve at the pleasure of the governor for four-year                                         
10 staggered terms.                                                                                                        
11  (b)  Two members of the legislature shall serve as ex officio nonvoting                                               
12 members of the board of directors.  The two ex officio nonvoting members shall                                          
13 include one member of the senate appointed by the president of the senate and one                                       
14 member of the house appointed by the speaker of the house of representatives.                                           
15  (c)  A full-time postsecondary student shall serve as a nonvoting member of the                                       
16 board of directors.  The governor shall appoint the student member from a list of                                       
17 nominees within 60 days after it is submitted.  The list must consist of the names of                                   
18 two nominees from Alaska Pacific University, two nominees from Sheldon Jackson                                          
19 College, and two nominees from each campus of the University of Alaska.  The                                            
20 nominees shall be selected from a student election held on each campus.  Elections                                      
21 under this subsection shall be held concurrently with student regent elections required                                 
22 under AS 14.40.150(b) and conducted under rules established by the Office of the                                        
23 Governor.  The term of office of the student member is two years beginning June 1                                       
24 of the year in which the appointment is made.  Membership on the corporation is                                         
25 immediately forfeited by a student member who ceases to be a full-time student.                                         
26 Within 60 days after a vacancy occurs, the governor shall appoint a successor from                                      
27 those students appearing on the list of nominees to serve for the unexpired term of the                                 
28 original appointee.  The term "campus" used in this subsection means a portion of the                                   
29 University of Alaska designated as a "campus" by the Board of Regents.                                                  
30  (d)  A governing body member, trustee, official, or employee of a public,                                             
31 private, or proprietary institution of postsecondary or higher education in the state may                               
01 not be appointed to membership on the corporation as representative of the general                                      
02 public for the purpose of (a) of this section.                                                                          
03  (e)  Members of the board serve without compensation, but the voting members                                          
04 who are not state employees and the student member are entitled to per diem and                                         
05 travel expenses authorized for boards and commissions under AS 39.20.180.                                               
06  (f)  Each year, the board shall elect a chair from among its voting membership.                                       
07 A majority of the voting members constitute a quorum for organizing the board,                                          
08 conducting board business, and exercising the powers of the corporation.                                                
09    * Sec. 5.  AS 14.42.160 is repealed and reenacted to read:                                                           
10  Sec. 14.42.160.  EXECUTIVE OFFICER AND STAFF; ADMINISTRATION.                                                         
11 (a)  The corporation may appoint an executive director as the corporation's executive                                   
12 officer.  The executive officer is a member of the exempt service under AS 39.25.110,                                   
13 serves at the pleasure of the corporation, and receives compensation fixed by the                                       
14 corporation.  The executive officer appoints persons to the staff positions authorized                                  
15 by the corporation, and staff compensation is fixed by the corporation.  Each employee                                  
16 of the corporation shall participate as a member of the public employees' retirement                                    
17 system (AS 39.35).                                                                                                      
18  (b)  The corporation is not a division in the Department of Revenue.  The                                             
19 corporation, members of the corporation, the executive officer, and staff are in the                                    
20 Department of Revenue for administrative support services only, and they are not                                        
21 subject to the direction of the commissioner of revenue.                                                                
22  (c)  Subject to review by the corporation, the executive director shall administer                                    
23 the student loan and grant programs under AS 14.43.                                                                     
24    * Sec. 6.  AS 14.42 is amended by adding a new section to read:                                                      
25  Sec. 14.42.180.  LEGAL COUNSEL.  The attorney general is legal counsel for                                            
26 the corporation.  The attorney general shall advise the corporation in legal matters                                    
27 arising in the discharge of its duties and represent the corporation in actions to which                                
28 it is a party.  If, in the opinion of the corporation, the public interest is not adequately                            
29 represented by counsel in a proceeding, the attorney general, upon request of the                                       
30 corporation, shall represent the public interest.                                                                       
31    * Sec. 7.  AS 14.42 is amended by adding a new section to read:                                                      
01  Sec. 14.42.195.  FUNCTIONS OF THE CORPORATION.  (a)  The corporation                                                  
02 shall administer the student loan fund under AS 14.42.210 and the student loan and                                      
03 grant programs under AS 14.43.                                                                                          
04  (b)  The corporation may adopt regulations under AS 44.62 (Administrative                                             
05 Procedure Act) to carry out the purposes of AS 14.43.                                                                   
06    * Sec. 8.  AS 14.42.200(10) is amended to read:                                                                      
07   (10)  gather information on student loans available to residents of                                                  
08 Alaska and disseminate the information to reasonably assure that qualified residents                                    
09 are aware of financial resources available to those attending or desiring to attend                                     
10 institutions for which loans may be made under AS 14.43.100 - 14.43.325 [AS                                           
11 14.43.090 - 14.43.325], 14.43.600 - 14.43.700, or 14.43.710 - 14.43.790;                                                
12    * Sec. 9.  AS 14.42.210(a) is amended to read:                                                                       
13  (a)  The student loan fund is established in the corporation.  The student loan                                       
14 fund is a trust fund to be used to carry out the purposes of AS 14.42.100 - 14.42.390,                                 
15 AS 14.43.100 - 14.43.325 [AS 14.43.090 - 14.43.325], 14.43.600 - 14.43.700, and                                        
16 14.43.710 - 14.43.790.  The fund consists of money or assets appropriated or                                            
17 transferred to the corporation for the fund and money or assets deposited in it by the                                  
18 corporation.  The corporation may establish separate accounts in the fund and shall                                    
19 establish separate accounts for the teacher scholarship revolving loan account                                          
20 under AS 14.43.620 and the family education loan account under AS 14.43.720.                                           
21    * Sec. 10.  AS 14.42.210(b) is amended to read:                                                                      
22  (b)  Money and other assets of the student loan fund may be used to secure                                            
23 bonds of the corporation, invested in student loans and investments under                                               
24 AS 37.10.071, and used to make [PURCHASE] loans approved under AS 14.43.090 -                                       
25 14.43.325, 14.43.600 - 14.43.700, or 14.43.710 - 14.43.790.                                                             
26    * Sec. 11.  AS 14.43.100 is amended to read:                                                                         
27  Sec. 14.43.100.  APPLICATIONS.  (a)  Applications shall be submitted to the                                           
28 executive director of the corporation [COMMISSION].                                                                   
29  (b)  A person whose loan application is not approved by the executive director                                        
30 of the corporation [COMMISSION] may appeal to the corporation [COMMISSION]                                          
31 and the corporation [COMMISSION] shall consider the application.                                                      
01    * Sec. 12.  AS 14.43.110, as amended by sec. 1, ch. 5, SLA 1996, is amended to read:                                 
02  Sec. 14.43.110.  STUDENT LOANS.  (a)  In a school year, the corporation                                             
03 [COMMISSION] may make a loan not to exceed                                                                              
04   (1)  $8,500 to a full-time undergraduate student or $4,500 [$5,000] to                                             
05 a half-time undergraduate student attending a college or university if the full- or half-                               
06 time student is otherwise eligible under AS 14.43.125;                                                                  
07   (2)  $9,500 to a full-time graduate student or $5,000 [$4,500] to a                                                
08 half-time graduate student attending a college or university if the full- or half-time                                  
09 graduate student is otherwise eligible under AS 14.43.125;                                                              
10   (3)  $5,500 to a full-time student or $2,000 to a half-time student if the                                           
11 full- or half-time student is attending a career education program [THAT IS AT                                          
12 LEAST SIX WEEKS IN LENGTH] and is otherwise eligible under AS 14.43.125.                                                
13  (b)  The corporation [COMMISSION] may make a loan for a summer term,                                                
14 even if the total loan for the school year exceeds the limit imposed under (a) of this                                  
15 section if the loan for the summer term is counted against the limit imposed under (a)                                  
16 of this section for the following school year.                                                                          
17  (c)  The corporation [COMMISSION] shall adopt regulations establishing a                                            
18 minimum amount for which a loan may be made.                                                                            
19    * Sec. 13.  AS 14.43.120(b), as amended by sec. 3, ch. 5, SLA 1996, is amended to read:                              
20  (b)  Scholarship loans may only be used to attend a                                                                   
21   (1)  career education program operating on a sound fiscal basis that has                                             
22   (A)  operated for two years before the borrower attends; and                                                        
23   (B)  submitted an executed program participation agreement as                                                       
24 required by the corporation [COMMISSION]; or                                                                          
25   (2)  a college or university that                                                                                    
26   (A)  has operated for at least two years before the borrower                                                        
27 attends;                                                                                                                
28   (B)  is accredited by a national or regional accreditation                                                          
29 association recognized by the Council on Recognition of Postsecondary                                                 
30 Accreditation or is approved by the corporation [COMMISSION];                                                         
31   (C)  if the loans are federally insured, is approved by the United                                                  
01 States Secretary of Education;                                                                                          
02   (D)  is a degree granting institution; and                                                                          
03   (E)  has submitted an executed program participation agreement                                                      
04 as required by the corporation [COMMISSION].                                                                          
05    * Sec. 14.  AS 14.43.120(c), as amended by sec. 4, ch. 5, SLA 1996, is amended to read:                              
06  (c)  To maintain a loan awarded to a full-time student, the student must                                            
07 continue to be enrolled as a full-time student in good standing in a career education                                   
08 program, college, or university that meets the requirements under (b) of this section.                                  
09 To maintain a loan awarded to a half-time student, the student must continue to be                                      
10 enrolled as a half-time student in good standing in (1) a career education program,                                     
11 college, or university in the state that meets the requirements under (b) of this section,                              
12 or (2) a career education program, college, or university that meets the requirements                                   
13 under (b) of this section, and be physically present in this [THE] state while attending                              
14 the career education program, college, or university.  The corporation                                                
15 [COMMISSION] shall adopt regulations defining "good standing" for purposes of this                                      
16 subsection.                                                                                                             
17    * Sec. 15.  AS 14.43.120(d), as amended by sec. 4, ch. 5, SLA 1996, is amended to read:                              
18  (d)  Scholarship loans may not be made to a student                                                                   
19   (1)  for more than a total of $42,500 for undergraduate study;                                                       
20   (2)  for more than a total of $47,500 for graduate study;                                                            
21   (3)  for more than a combined total of $60,000 for undergraduate and                                                 
22 graduate study;                                                                                                         
23   (4)  to attend an institution, if the total amount of scholarship loans                                              
24 made to students to attend that institution exceeds $100,000 and the default rate on                                    
25 those loans is (A) greater than 20 percent but less than 25 percent, and the institution                                
26 is unable to reduce its default rate within 24 months after the rate determination; or                                  
27 (B) equal to or greater than 25 percent for two consecutive calendar years; for                                         
28 purposes of this paragraph, the default rate shall annually be determined by the                                       
29 corporation [COMMISSION] from loans required to be repaid under (g) of this                                            
30 section on or after July 1, 1996; if a scholarship loan is refused based on the                                         
31 provisions of this paragraph and, under a subsequent default rate determination [,] an                                  
01 institution's default rate does not exceed the limits established under this paragraph,                                 
02 the corporation [COMMISSION] may not refuse to issue a scholarship loan to attend                                     
03 that institution based on the provisions of this paragraph.                                                             
04    * Sec. 16.  AS 14.43.120(f) is amended to read:                                                                      
05  (f)  Interest on a loan made under AS 14.43.100 - 14.43.160 [AS 14.43.090 -                                         
06 14.43.160] is equal to the interest rate                                                                                
07   (1)  paid in each year on bonds issued by the corporation [ALASKA                                                  
08 STUDENT LOAN CORPORATION] under AS 14.42.220; and                                                                       
09   (2)  necessary to pay the administrative cost of the student loan program                                            
10 that is represented by the loan.                                                                                        
11    * Sec. 17.  AS 14.43.120(g), as amended by sec. 6, ch. 5, SLA 1996, is amended to read:                              
12  (g)  A borrower's obligation to commence repayment of the principal and                                               
13 interest on the loan begins six months after the borrower is no longer enrolled under                                   
14 (c) of this section.  The borrower shall repay the total amount owed in periodic                                        
15 installments of at least $50 a month over a period of not more than 15 years from the                                   
16 commencement of the repayment obligation.  If the corporation [COMMISSION] and                                        
17 the borrower agree to a different repayment schedule, the borrower shall repay the loan                                 
18 in accordance with the agreement.  A borrower may make payments earlier than                                            
19 required by this subsection or the agreement.                                                                           
20    * Sec. 18.  AS 14.43.120(i), as amended by sec. 8, ch. 5, SLA 1996, is amended to read:                              
21  (i)  If a loan is in default, the corporation [COMMISSION]                                                          
22   (1)  shall notify the borrower that [, IF THE BORROWER HAS AN                                                        
23 OCCUPATIONAL LICENSE ISSUED UNDER AS 08, THE LICENSE MAY NOT                                                            
24 BE RENEWED UNDER AS 08.02.025 AND THAT] repayment of the remaining                                                      
25 balance is accelerated and due and that, if the borrower has an occupational license                                   
26 issued under AS 08, the license may not be renewed under AS 08.02.025, by                                              
27 mailing the borrower a notice at the most recent address provided to the commission                                     
28 by the borrower;                                                                                                        
29   (2)  may take the borrower's permanent fund dividend under                                                           
30 AS 43.23.065(b)(3) to satisfy the balance due on a defaulted loan; and                                                  
31   (3)  shall provide notice of the default to the Department of Commerce                                               
01 and Economic Development, if the loan recipient is licensed under AS 08.                                                
02    * Sec. 19.  AS 14.43.120(m), as amended by sec. 11, ch. 5, SLA 1996, is amended to read:                             
03  (m)  In case of hardship, the corporation [COMMISSION] may extend                                                   
04 repayment of a loan for an additional period of up to five years.                                                       
05    * Sec. 20.  AS 14.43.120(r) is amended to read:                                                                      
06  (r)  The rate of interest, time of payment of an installment of principal or                                          
07 interest, or other loan terms [OF A SCHOLARSHIP LOAN] may be modified if                                              
08 required to establish or maintain tax-exempt status under 26 U.S.C. 103 (Internal                                       
09 Revenue Code of 1986), as amended, for the interest on bonds issued by the                                             
10 corporation [ALASKA STUDENT LOAN CORPORATION].                                                                         
11    * Sec. 21.  AS 14.43.120(t), as amended by sec. 13, ch. 5, SLA 1996, is amended to read:                             
12  (t)  Payment of interest under (l) of this section and forgiveness under (s) of                                       
13 this section are subject to appropriation by the legislature.  Money obtained from the                                  
14 sale of bonds by the corporation [STUDENT LOAN CORPORATION] under                                                     
15 AS 14.42.220 may not be appropriated for the payment of interest or the forgiveness                                     
16 of loans.                                                                                                               
17    * Sec. 22.  AS 14.43.120(u), as amended by sec. 14, ch. 5, SLA 1996, is amended to read:                             
18  (u)  The corporation [COMMISSION] by regulation shall set a loan                                                    
19 origination fee, not to exceed five percent of the total [SCHOLARSHIP] loan amount,                                     
20 to be assessed upon a [SCHOLARSHIP] loan that is funded from the student loan fund                                      
21 of the corporation [ALASKA STUDENT LOAN CORPORATION].  The loan                                                       
22 origination fee shall be deducted at the time the loan is disbursed.  Subject to                                        
23 appropriation, the loan origination fees shall be deposited into an origination fee                                     
24 account within the student loan fund of the corporation [ALASKA STUDENT LOAN                                          
25 CORPORATION], and subsequently used by the corporation to offset losses incurred                                        
26 as a result of death, disability, default, or bankruptcy of the borrower.                                               
27    * Sec. 23.  AS 14.43.120(v) is amended to read:                                                                      
28  (v)  In determining a rate of interest under (f)(2) of this section,                                                
29   (1)  the corporation [COMMISSION] shall use a method that ensures                                                  
30 that the rate of interest is as low as possible without precluding the ability of the                                  
31 corporation [COMMISSION] to administer loans made under AS 14.43.100 -                                                
01 14.43.160 [AS 14.43.090 - 14.43.160]; and                                                                              
02   (2)  the total amount charged for administrative costs of the student loan                                           
03 program may not exceed two and one-half percent above the amount determined under                                       
04 (f)(1) of this section.                                                                                                 
05    * Sec. 24.  AS 14.43.122(a) is amended to read:                                                                      
06  (a)  The corporation [COMMISSION] may offer the option of consolidating                                            
07 into a single loan                                                                                                     
08   (1)  multiple loans made to a borrower who has received more than                                                  
09 one loan under this chapter [THE OPTION OF CONSOLIDATING THE MULTIPLE                                                   
10 LOANS INTO A SINGLE LOAN]; or                                                                                           
11   (2)  [TO CONSOLIDATE] loans made to married borrowers if the                                                         
12 married borrowers agree to be jointly and severally liable for repayment of the                                         
13 consolidated loan [,] regardless of the borrowers' future marital status or the death of                                
14 one of the borrowers.                                                                                                   
15    * Sec. 25.  AS 14.43.125(a), as amended by sec. 15, ch. 5, SLA 1996, is amended to read:                             
16  (a)  A person may apply for and obtain a student [SCHOLARSHIP] loan if the                                          
17 person                                                                                                                  
18   (1)  is                                                                                                              
19   (A)  enrolled as a full-time student in a career education,                                                         
20 associate, baccalaureate, or graduate degree program;                                                                   
21   (B)  enrolled as a half-time student in a career education,                                                         
22 associate, baccalaureate, or graduate degree program                                                                    
23   (i)  in the state; or                                                                                              
24   (ii)  out of the state and is physically present in this state                                                     
25 while attending that program; or                                                                                        
26   (C)  a graduate of a high school or the equivalent, or scheduled                                                    
27 for graduation from a high school within six months, with sufficient credits to                                         
28 be admitted to a career education program or to an accredited college or                                                
29 university;                                                                                                             
30   (2)  is not delinquent or in default on a previously awarded student                                                
31 [SCHOLARSHIP] loan; and                                                                                                
01   (3)  is a resident of the state at the time of application for the loan; for                                         
02 purposes of this section, a person qualifies as a resident of the state if at the time of                               
03 application for the loan the person                                                                                     
04   (A)  has been physically present in the state for at least one year                                                 
05 immediately before the time of application for the loan;                                                                
06   (B)  is dependent on a parent or guardian for care, the parent or                                                   
07 guardian has been present in the state for at least one year immediately before                                         
08 the time of application for the loan, and the person has been present in the state                                      
09 for at least one year of the immediately preceding five years, except that the                                       
10 corporation [COMMISSION] may by a two-thirds vote, acting upon a written                                               
11 appeal by the person, grant an exemption to the requirement that the person has                                         
12 been present in the state for one year of the immediately preceding five years;                                         
13   (C)  has been physically present in the state for at least one year                                                 
14 immediately before the applicant was absent from the state and the absence is                                           
15 due solely to                                                                                                           
16   (i)  serving an initial period of up to three years on active                                                      
17 duty as a member of the armed forces of the United States;                                                              
18   (ii)  serving for up to three years as a full-time volunteer                                                       
19 under the Peace Corps Act;                                                                                              
20   (iii)  serving for up to three years as a full-time volunteer                                                      
21 under the Domestic Volunteer Service Act of 1973;                                                                       
22   (iv)  required medical care for the applicant or the                                                               
23 applicant's immediate family;                                                                                           
24   (v)  being a person who otherwise qualifies as a resident                                                          
25 and is accompanying a spouse who qualifies as a resident under (i) -                                                    
26 (iv) of this paragraph;                                                                                                 
27   (vi)  an absence allowed under (D)(i)-(iv) of this                                                                 
28 paragraph; or                                                                                                           
29   (D)  is a dependent of a parent or guardian who has been                                                            
30 physically present in the state for at least one year immediately before the                                            
31 parent or guardian was absent from the state and the absence is due solely to;                                          
01   (i)  participating in a foreign exchange student program                                                           
02 recognized by the corporation [COMMISSION];                                                                           
03   (ii)  attending a school as a full-time student;                                                                   
04   (iii)  full-time employment by the state;                                                                          
05   (iv)  being a member of or employed full-time by the                                                               
06 state's congressional delegation;                                                                                       
07   (v)  being a person who otherwise qualifies as a resident                                                          
08 and is accompanying a spouse who qualifies as a resident under (i) -                                                    
09 (iv) of this paragraph;                                                                                                 
10   (4)  does not have a past due child support obligation established by                                                
11 court order or by the child support enforcement division under AS 25.27.160 -                                           
12 25.27.220 at the time of application; and                                                                               
13   (5)  has not, within the previous five years, had a [SCHOLARSHIP]                                                    
14 loan discharged or written off by the corporation or the former Alaska Commission                                      
15 on Postsecondary Education [COMMISSION] for any reason.                                                                
16    * Sec. 26.  AS 14.43.125(c), as amended by sec. 16, ch. 5, SLA 1996, is amended to read:                             
17  (c)  A person may not be awarded a scholarship loan under AS 14.43.100 -                                             
18 14.43.160 [AS 14.43.090 - 14.43.160] if that person receives a teacher scholarship loan                                
19 under AS 14.43.600 - 14.43.700 for the same period of attendance.                                                       
20    * Sec. 27.  AS 14.43.150(a) is amended to read:                                                                      
21  (a)  In a court proceeding regarding a defaulted loan under this chapter in                                           
22 which the court has entered judgment in favor of the corporation or the former                                         
23 Alaska Commission on Postsecondary Education [COMMISSION], the court may,                                              
24 on its own motion or motion of the corporation [COMMISSION], after notice and an                                      
25 opportunity for hearing, order the loan recipient to assign to the corporation                                        
26 [COMMISSION] that portion of salary or wages due the loan recipient currently and                                       
27 in the future in an amount sufficient to pay the amount ordered by the court to be                                      
28 repaid [TO THE COMMISSION].                                                                                             
29    * Sec. 28.  AS 14.43.160 is amended to read:                                                                         
30  Sec. 14.43.160.  DEFINITIONS.  In AS 14.43.100 - 14.43.160, [AS 14.43.090                                           
31 -  14.43.160]                                                                                                           
01   (1)  "career education" means a course or program in vocational-                                                     
02 technical training or education approved by the corporation that is a half-time program at                             
03 least 12 weeks in length or a full-time program at least six weeks in length                                           
04 [COMMISSION];                                                                                                           
05   (2)  "federally insured" means a loan covered by the provisions of the                                               
06 Guaranteed Student Loan Program of Title IV, Part B, of the Higher Education Act of                                     
07 1965 (P.L. 89-329), as amended;                                                                                         
08   (3)  "full-time student" means an undergraduate or career education                                                  
09 student who is enrolled and is in regular attendance at classes for at least 12 semester                                
10 hours of credit or the equivalent during the semester or a graduate student who is                                      
11 enrolled and is in regular attendance at classes for at least nine semester hours of credit                             
12 or the equivalent; any combination of semester hours of credit, or the equivalent,                                      
13 aggregating to the requisite number of semester hours and undertaken during a                                           
14 semester at two or more public or private institutions of higher education constitutes                                  
15 full-time student status;                                                                                               
16   (4)  "half-time student" means an undergraduate, graduate, or career                                                 
17 education student who during the semester is enrolled and is in regular attendance at                                   
18 classes at one or more public or private institutions of higher education for at least a                                
19 total of six semester credit hours or an equivalent of six semester credit hours, and                                   
20 includes a career education student enrolled and in regular attendance in classes for at                                
21 least 15 hours a week;                                                                                                  
22   (5)  "school year" means the period from September 1 of one year                                                     
23 through August 31 of the following year;                                                                                
24   (6)  "summer term" means the period from June 1  - August 31.                                                        
25    * Sec. 29.  AS 14.43.255(a) is amended to read:                                                                      
26  (a)  There is created a memorial scholarship revolving loan fund to be                                               
27 administered by the corporation.  The fund shall be used to provide educational                                        
28 scholarship loans to students selected under AS 14.43.250 - 14.43.325.  Repayments                                    
29 [UNLESS THE INSTRUMENT EVIDENCING THE MEMORIAL SCHOLARSHIP                                                              
30 LOAN HAS BEEN SOLD OR ASSIGNED TO THE ALASKA STUDENT LOAN                                                               
31 CORPORATION, REPAYMENTS] of a loan shall be deposited into the memorial                                                 
01 scholarship revolving loan fund and shall be used to make new loans.                                                    
02    * Sec. 30.  AS 14.43.300(g), as amended by sec. 18, ch. 5, SLA 1996, is amended to read:                             
03  (g)  The corporation [COMMISSION] by regulation shall set a loan                                                    
04 origination fee, not to exceed five percent of the total memorial scholarship loan                                      
05 amount, to be assessed upon a memorial scholarship loan.  The loan origination fee                                      
06 shall be deducted at the time the loan amount is disbursed.  The [SUBJECT TO                                        
07 APPROPRIATION, THE] loan origination fee shall be deposited into a origination fee                                      
08 account within the memorial scholarship revolving loan fund, and subsequently                                           
09 transferred by the corporation [COMMISSION] to the appropriate memorial                                               
10 scholarship accounts within the memorial scholarship revolving loan fund to offset                                      
11 losses incurred due to loan debt cancellation as a result of death, disability, default,                               
12 or bankruptcy of the borrower [STUDENT].                                                                             
13    * Sec. 31.  AS 14.43.305(i) is amended to read:                                                                      
14  (i)  To the extent they are not in conflict with terms and conditions under                                           
15 AS 14.43.250 - 14.43.325, the terms and conditions of a memorial scholarship loan                                       
16 made under AS 14.43.250(b)(5) are the same as the terms and conditions for a                                            
17 scholarship loan under AS 14.43.100 - 14.43.160 [AS 14.43.090 - 14.43.160], except                                    
18 that the interest on the loan is equal to five percent.                                                                 
19    * Sec. 32.  AS 14.43.320(b) is amended to read:                                                                      
20  (b)  To the extent that they are not in conflict with the provisions of                                               
21 AS 14.43.250 - 14.43.325, the provisions of AS 14.43.100 - 14.43.160 [AS 14.43.090 -                                  
22 14.43.160] relating to scholarship loans are applicable to loans made under                                             
23 AS 14.43.250 - 14.43.325.                                                                                               
24    * Sec. 33.  AS 14.43.405(b) is amended to read:                                                                      
25  (b)  To the extent that they are not in conflict with the provisions of                                               
26 AS 14.43.400 - 14.43.405, the provisions of AS 14.43.100 - 14.43.160 [AS 14.43.090 -                                  
27 14.43.160] relating to student financial aid are applicable to the grants made under                                    
28 AS 14.43.400 - 14.43.500.                                                                                               
29    * Sec. 34.  AS 14.43.410 is amended to read:                                                                         
30  Sec. 14.43.410.  DISTRIBUTION OF FUNDS.  The funds appropriated for the                                               
31 educational incentive grant program shall be allocated to eligible students in                                          
01 accordance with the provisions of the federal state student incentive grant program and                                 
02 regulations adopted under AS 14.42.200 and AS 14.43.405 [AS 14.43.105 AND                                             
03 14.43.405].                                                                                                             
04    * Sec. 35.  AS 14.43.415 is amended to read:                                                                         
05  Sec. 14.43.415.  ELIGIBILITY; PRIORITY.  (a)  A student may apply for an                                              
06 educational incentive grant if the student                                                                              
07   (1)  is a resident of Alaska;                                                                                        
08   (2)  is [EITHER]                                                                                                     
09   (A)  enrolled as a full-time undergraduate student in a degree                                                      
10 program in an accredited postsecondary educational institution; or                                                      
11   (B)  eligible to be admitted to an accredited postsecondary                                                         
12 educational institution; and                                                                                            
13   (3)  establishes financial need in accordance with standards for                                                     
14 determining financial need adopted by the corporation [COMMISSION] under 20                                           
15 U.S.C. 1070c-2.                                                                                                         
16  (b)  The corporation [COMMISSION] shall adopt regulations to [, BY                                                
17 REGULATION,] establish a system of priority in the selection of recipients of grants                                    
18 under AS 14.43.400 - 14.43.500 under which students from "low income" families or                                       
19 whose incomes are considered "low income" shall be given preference in the award                                        
20 of the educational incentive grants.                                                                                    
21    * Sec. 36.  AS 14.43.620(a) is amended to read:                                                                      
22  (a)  The [THERE IS CREATED A] teacher scholarship revolving loan account                                           
23 is created within the student loan fund (AS 14.42.210).  The account [FUND] shall                                  
24 be used to make scholarship loans to students selected under AS 14.43.600 -                                             
25 14.43.700.  Repayments [UNLESS THE INSTRUMENT EVIDENCING THE                                                          
26 TEACHER SCHOLARSHIP LOAN HAS  BEEN SOLD OR ASSIGNED TO THE                                                              
27 ALASKA STUDENT LOAN CORPORATION, REPAYMENTS] of principal and                                                           
28 interest on a teacher scholarship loan shall be paid into the teacher scholarship                                       
29 revolving loan account [FUND] and shall be used to make new teacher scholarship                                       
30 loans.  If estimated funds available are inadequate to fully fund estimated teacher                                     
31 scholarship loans for any fiscal year, additional funding from the general fund may be                                  
01 requested and appropriated for that year.                                                                               
02    * Sec. 37.  AS 14.43.630(a) is amended to read:                                                                      
03  (a)  [THE TEACHER SCHOLARSHIP LOAN PROGRAM SHALL BE                                                                   
04 ADMINISTERED BY THE COMMISSION IN ACCORDANCE WITH                                                                       
05 REGULATIONS ADOPTED BY THE COMMISSION.]  The corporation                                                              
06 [COMMISSION] shall                                                                                                      
07   (1)  annually allocate the [LOAN AWARDS] available [FOR] teacher                                                   
08 scholarship loans awards [ANNUALLY] to local school boards giving a preference                                        
09 to rural school districts; and                                                                                          
10   (2)  [DEVELOP AND] distribute to the local school boards an                                                          
11 application form for teacher scholarship loans; [THE FORM MUST INCLUDE A                                                
12 REQUIREMENT THAT] the applicant must provide [SUPPLY] a high school                                                   
13 academic transcript and a statement of intent to enter a teaching career at the                                         
14 elementary or secondary school level in the state.                                                                      
15    * Sec. 38.  AS 14.43.650(a) is amended to read:                                                                      
16  (a)  To be eligible for a teacher scholarship loan, a student must                                                    
17   (1)  be a graduate of a public or private high school in the state [,] with                                          
18 sufficient credits to be admitted to an accredited college or university;                                               
19   (2)  be enrolled in or show evidence of intent to enroll in a degree                                                 
20 program directed at a teaching career at the elementary or secondary school level;                                      
21   (3)  meet the conditions set by the student's local school board with                                                
22 respect to the district's requirements for teachers in particular subject areas;                                        
23   (4)  submit to the local school board an application on a form provided                                            
24 by the corporation [COMMISSION] under AS 14.43.630(a)(2); an application may                                          
25 be submitted six months before graduation from high school; and                                                         
26   (5)  not have a past due child support obligation established by court                                               
27 order or by the child support enforcement division under AS 25.27.160 - 25.27.220 at                                    
28 the time of application.                                                                                                
29    * Sec. 39.  AS 14.43.650(c), as amended by sec. 20, ch. 5, SLA 1996, is amended to read:                             
30  (c)  A student may not be awarded a teacher scholarship loan under                                                    
31 AS 14.43.600 - 14.43.700 if the student receives a student [SCHOLARSHIP] loan                                         
01 under AS 14.43.100 - 14.43.160 [AS 14.43.090 - 14.43.160] for the same period of                                      
02 attendance.                                                                                                             
03    * Sec. 40.  AS 14.43.720(a) is amended to read:                                                                      
04  (a)  The family education loan account is created within the student                                                
05 [SCHOLARSHIP REVOLVING] loan fund (AS 14.42.210 [AS 14.43.090]).  The                                                 
06 account shall be used to make family education loans to families selected under                                         
07 AS 14.43.710 - 14.43.790, to pay the costs of collecting family education loans that                                    
08 are in default if those costs are not recovered from the family, and to pay the costs of                                
09 administering the account.  Repayments [UNLESS THE INSTRUMENT                                                         
10 EVIDENCING THE FAMILY EDUCATION LOAN HAS BEEN SOLD OR                                                                   
11 ASSIGNED TO THE ALASKA STUDENT LOAN CORPORATION,                                                                        
12 REPAYMENTS] of principal and interest on family education loans shall be paid into                                      
13 the family education loan account.  If estimated funds available from family education                                  
14 loan repayments are inadequate to fully fund estimated family education loans in a                                      
15 fiscal year, additional funding from the general fund may be requested and                                              
16 appropriated for that year.                                                                                             
17    * Sec. 41.  AS 14.43.740(d) is amended to read:                                                                      
18  (d)  A borrower's obligation to commence repayment [REPAYMENT] of                                                   
19 the principal and interest on a family education loan [MADE UNDER AS 14.43.710 -                                      
20 14.43.790] begins on the first of the month immediately following loan disbursement.                                    
21 The loan may be cancelled without prejudice at any time before actual disbursement.                                     
22 The borrower shall repay [LOAN SHALL PROVIDE FOR REPAYMENT OF] the                                                    
23 total amount owed in periodic installments over a period of [IN] not more than 10                                     
24 years from the commencement of the repayment obligation.  If the corporation                                      
25 [COMMISSION] and the borrower agree to a different repayment schedule, the                                              
26 borrower shall repay the loan in accordance with the agreement.  The borrower may                                      
27 make payments earlier than required by this section or the agreement.                                                  
28    * Sec. 42.  AS 14.43.990 is repealed and reenacted to read:                                                          
29  Sec. 14.43.990.  DEFINITION.  In this chapter, "corporation" means the Alaska                                         
30 Student Loan Corporation.                                                                                               
31    * Sec. 43.  AS 14.44.035 is amended to read:                                                                         
01  Sec. 14.44.035.  ADMINISTRATION.  The Alaska Student Loan Corporation                                               
02 [COMMISSION ON POSTSECONDARY EDUCATION] shall administer the state's                                                    
03 participation in the Western Regional Higher Education Compact.                                                         
04    * Sec. 44.  AS 14.48 is amended by adding a new section to read:                                                     
05  Sec. 14.48.035.  ALASKA POSTSECONDARY EDUCATION COMMISSION.                                                           
06 (a)  The Alaska Postsecondary Education Commission is created in the department                                         
07 consisting of the voting members of the Alaska Student Loan Corporation under                                           
08 AS 14.42.120.  The public members are subject to confirmation by the legislature and                                    
09 serve at the pleasure of the governor for four-year staggered terms.                                                    
10  (b)  Members of the commission serve without compensation, but the members                                            
11 who are not state employees are entitled to per diem and travel expenses authorized                                     
12 for boards and commissions under AS 39.20.180.                                                                          
13  (c)  The commission shall elect a chair from among its membership at its                                              
14 annual meeting each year.  A majority of the members constitute a quorum for                                            
15 organizing the commission, conducting its business, and exercising the powers of the                                    
16 commission.                                                                                                             
17  (d)  The employees of the department shall serve as staff to the commission.                                          
18    * Sec. 45.  AS 14.48.040 is amended to read:                                                                         
19  Sec. 14.48.040.  COMMISSION TO ADMINISTER CHAPTER.  The Alaska                                                        
20 Commission on Postsecondary Education shall administer this chapter [AND MAY                                            
21 HIRE NECESSARY PERSONNEL].  The commission may obtain from departments,                                                 
22 commissions, and other state agencies information and assistance needed to carry out                                    
23 the provisions of this chapter.                                                                                         
24    * Sec. 46.  AS 14.48.050 is amended by adding new subsections to read:                                               
25  (b)  The commission has the following advisory functions to the governing                                             
26 boards of higher education institutions in this state, the governor, the legislature, and                               
27 other appropriate state and federal officials:                                                                          
28   (1)  coordinate the development or the start of comprehensive plans for                                              
29 the orderly systematic growth of public and private postsecondary education, including                                  
30 community colleges and occupational education, and submit recommendations on the                                        
31 need for, and location of, new facilities and programs; and                                                             
01   (2)  advise as to the functions and purposes of the public and private                                               
02 colleges and universities in the state and counsel as to the programs appropriate to                                    
03 each.                                                                                                                   
04  (c)  The commission may                                                                                               
05   (1)  require the institutions of public and private higher education and                                             
06 other institutions of postsecondary education in the state to submit data on costs,                                     
07 selection and retention of students, enrollments, plant capacities and use, and other                                   
08 matters pertinent to effective planning and coordination, and shall furnish information                                 
09 concerning these matters to the governor, the legislature, and other state and federal                                  
10 agencies as requested;                                                                                                  
11   (2)  establish task forces, committees, or subcommittees, not necessarily                                            
12 consisting of commission members or employees, to advise and assist the commission                                      
13 in carrying out its functions assigned by this chapter and federal statute; the                                         
14 commission may contract with, or use, existing institutions of higher education or other                                
15 individuals or organizations to make studies, conduct surveys, submit                                                   
16 recommendations, or otherwise contribute to the work of the commission.                                                 
17    * Sec. 47.  AS 14.48.090 is repealed and reenacted to read:                                                          
18  Sec.  14.48.090.  FEES.  The commission shall adopt regulations that establish                                        
19 the amount and manner of payment of fees for applications, authorizations, permits,                                     
20 and renewals under this chapter.                                                                                        
21    * Sec. 48.  AS 14.48.120 is amended by adding a new subsection to read:                                              
22  (d)  In addition to the sanctions imposed under (a) of this section, the                                              
23 commission may assess a civil fine, not to exceed $5,000, for costs of investigating                                    
24 and adjudicating a matter under this chapter.                                                                           
25    * Sec. 49.  AS 39.05.100(a) is amended to read:                                                                      
26  (a)  A person appointed to a board or commission of the state government shall                                        
27 be and have been before the last general election, (1) a registered voter in the state,                                 
28 if the appointment is made at large or (2) a registered voter from the judicial district,                               
29 if the appointment is made from a specific judicial district.  The student member of                                    
30 the Board of Regents of the University of Alaska appointed under AS 14.40.150(b),                                       
31 the student member of the Alaska Student Loan Corporation [COMMISSION ON                                              
01 POSTSECONDARY EDUCATION] appointed under AS 14.42.120 [AS 14.42.015(e)],                                              
02 and a member of the Alaska Human Relations Commission appointed under                                                   
03 AS 44.19.600, are exempt from the requirement of this subsection if the member was                                      
04 not old enough to be a registered voter in the last general election.                                                   
05    * Sec. 50.  AS 39.25.110(11) is amended to read:                                                                     
06   (11)  the officers and employees of the following boards, commissions,                                               
07 and authorities:                                                                                                        
08   (A)  [REPEALED                                                                                                      
09   (B)]  Alaska Permanent Fund Corporation;                                                                            
10   (B) [(C)]  Alaska Industrial Development and Export Authority;                                                    
11   (C) [(D)]  Alaska Commercial Fisheries Entry Commission;                                                          
12   (D) [(E)]  Alaska Student Loan Corporation [COMMISSION                                                          
13 ON POSTSECONDARY EDUCATION];                                                                                            
14   (E) [(F)]  Alaska Aerospace Development Corporation;                                                              
15    * Sec. 51.  AS 39.50.200(b)(32) is amended to read:                                                                  
16   (32)  Alaska Commission on Postsecondary Education (AS 14.48.035)                                                  
17 [(AS 14.42.015)];                                                                                                       
18    * Sec. 52.  AS 39.50.200(b) is amended by adding a new paragraph to read:                                            
19   (56)  Alaska Student Loan Corporation (AS 14.42.100).                                                                
20    * Sec. 53.  AS 43.23.067(a) is amended to read:                                                                      
21  (a)  AS 09.38 does not apply to permanent fund dividends taken under                                                  
22 AS 14.43.120(i). Notwithstanding AS 09.35, the Alaska Student Loan Corporation                                         
23 may take a permanent fund dividend [EXECUTION ON A CLAIM] under                                                        
24 AS 14.43.120(i) [IS ACCOMPLISHED] by delivering a certified claim to the                                                
25 department containing the following information:                                                                        
26   (1)  the name and social security number of the individual whose                                                     
27 dividend is being claimed;                                                                                              
28   (2)  the amount the individual owes on the scholarship loan; and                                                     
29   (3)  a statement that                                                                                                
30   (A)  a [THE] debt for at least the amount claimed has not                                                       
31 been contested, or, if contested, that the issue has been resolved in favor of the                                      
01 Alaska Student Loan Corporation [COMMISSION ON POSTSECONDARY                                                          
02 EDUCATION]; and                                                                                                         
03   (B)  if the debt has been contested and resolved in favor of the                                                    
04 Alaska Student Loan Corporation [COMMISSION ON POSTSECONDARY                                                          
05 EDUCATION], no appeal is pending, the time limit for filing an appeal has                                               
06 expired, or the appeal has been resolved in favor of the commission.                                                    
07    * Sec. 54.  AS 43.23.067(b) is amended to read:                                                                      
08  (b)  The Alaska Student Loan Corporation [COMMISSION ON                                                             
09 POSTSECONDARY EDUCATION] shall notify the individual of a claim under (a)                                               
10 of this section. The notice shall be sent to the address provided in the individual's                                   
11 permanent fund dividend application and must provide the following information:                                         
12   (1)  the amount of the claim; and                                                                                    
13   (2)  notice that the amount of the permanent fund dividend that does not                                             
14 exceed the amount of the claim shall be paid to the Alaska Student Loan                                                
15 Corporation [COMMISSION ON POSTSECONDARY EDUCATION] unless the                                                         
16 commission releases the claim or the individual requests a hearing within 30 days after                                 
17 the date the notice is sent by the commission.                                                                          
18    * Sec. 55.  AS 14.42.010, 14.42.015, 14.42.020, 14.42.025, 14.42.030, 14.42.035, 14.42.040,                          
19 14.42.045, 14.42.050, 14.42.055, 14.42.170, 14.42.200(18), 14.42.210(c); AS 14.43.090,                                  
20 14.43.105, 14.43.255(c), 14.43.320(a), 14.43.405(a), 14.43.620(b), and 14.43.720(b) are                                 
21 repealed.                                                                                                               
22    * Sec. 56.  TRANSITIONAL PROVISION:  TEMPORARY FEE SCHEDULE FOR                                                      
23 CERTAIN ACTIVITIES RELATED TO POSTSECONDARY EDUCATIONAL                                                                 
24 INSTITUTIONS AND AGENTS.  Until a new fee schedule is adopted by regulation to                                          
25 implement the changes made by sec. 47 of this Act, the commission may charge the fees set                               
26 out in the following schedule for an authorization to operate an institution in this state and for                      
27 an agent's permit related to activities for postsecondary educational institutions:                                     
28   (1)  authorization to operate   $100;                                                                                 
29   (2)  renewal of authorization to operate $100;                                                                        
30   (3)  an agent's permit    $  50;                                                                                      
31   (4)  renewal of an agent's permit  $  50.                                                                             
01    * Sec. 57.  TRANSITION.  (a)  The terms of the members of the Alaska Commission on                                   
02 Postsecondary Education terminate on the effective date of sec. 1 of this Act.  The governor                            
03 may appoint  to the Alaska Student Loan Corporation a person who has served on the Alaska                               
04 Commission on Postsecondary Education and who meets the qualifications of AS 14.42.120,                                 
05 as repealed and reenacted by this Act.  The terms of public persons initially appointed to the                          
06 Alaska Student Loan Corporation must be set as provided in AS 39.05.055.                                                
07  (b)  Litigation, hearings, investigations, and other proceedings pending under a law                                   
08 amended or repealed by this Act, or in connection with functions transferred by this Act,                               
09 continue in effect and may be continued and completed notwithstanding a transfer or                                     
10 amendment or repeal provided for in this Act.                                                                           
11  (c)  Regulations adopted by the Alaska Commission on Postsecondary Education under                                     
12 authority of AS 14.43 remain in effect until regulations adopted by the Alaska Student Loan                             
13 Corporation under that chapter, as amended by this Act, take effect.  The Alaska Student Loan                           
14 Corporation may implement and enforce commission regulations until the regulations of the                               
15 corporation take effect.  Notwithstanding sec. 59 of this Act, the Alaska Student Loan                                  
16 Corporation may immediately proceed to adopt regulations necessary to implement the                                     
17 changes made by this Act to AS 14.43.  The regulations take effect under AS 44.62                                       
18 (Administrative Procedure Act), but not before the effective date of sec. 1 of this Act.                                
19   (d)  Regulations adopted under the authority of AS 14.48 by the Alaska Commission                                     
20 on Postsecondary Education, as constituted before July 1, 1996, remain in effect.                                       
21 Notwithstanding sec. 59 of this Act, the commission may immediately proceed to adopt                                    
22 regulations necessary to implement the changes made by this Act to AS 14.48.  The                                       
23 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the                               
24 effective date of sec. 1 of this Act.                                                                                   
25  (e)  Contracts, rights, liabilities, notes, or other obligations created by or under a                                 
26 section of AS 14.43 amended or repealed by this Act, and in effect on June 30, 1996, remain                             
27 in effect notwithstanding this Act, with all contracts, rights, liabilities, notes, or other                            
28 obligations created by or under a section of AS 14.43 amended or repealed by this Act                                   
29 becoming contracts, rights, liabilities, notes, or other obligations of the Alaska Student Loan                         
30 Corporation.                                                                                                            
31  (f)  Records, equipment, appropriations, and other property of agencies of the state                                   
01 whose functions are transferred under this Act shall be transferred to implement the provisions                         
02 of this Act.                                                                                                            
03  (g)  An individual who is an employee of the Alaska Commission on Postsecondary                                        
04 Education on June 30, 1996, becomes an employee of the Alaska Student Loan Corporation                                  
05 on July 1, 1996.                                                                                                        
06  (h)  Employees of the Alaska Student Loan Corporation who were, on June 30, 1996,                                      
07 employees of the Alaska Commission on Postsecondary Education, are no longer eligible to                                
08 accrue credited service under AS 14.25.                                                                                 
09    * Sec. 58.  Section 57(c) and (d) take effect immediately under AS 01.10.070(c).                                     
10    * Sec. 59.  Except as provided in sec. 58 of this Act, this Act takes effect July 1, 1996.