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SCS CSHB 305(RLS): "An Act prohibiting certain state employment, a student loan, or a permanent fund dividend for a person who fails to register for the military selective service; and providing for an effective date."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 305(RLS) 01 "An Act prohibiting certain state employment, a student loan, or a permanent fund 02 dividend for a person who fails to register for the military selective service; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.43.125(a) is amended to read: 06 (a) A person is eligible for a loan if the person 07 (1) is 08 (A) enrolled as a full-time student in a career education, 09 associate, baccalaureate, or graduate degree program; 10 (B) enrolled as a half-time student in a career education, 11 associate, baccalaureate, or graduate degree program 12 (i) in the state; or 13 (ii) out of the state and is physically present in this state 14 while attending that program; or

01 (C) a graduate of a high school or the equivalent, or scheduled 02 for graduation from a high school within six months, who, at the time of loan 03 disbursement, will be enrolled in compliance with (A) or (B) of this paragraph; 04 (2) is not delinquent and has never been in default on a loan previously 05 awarded by the commission; 06 (3) is a resident of the state at the time of application for the loan; for 07 purposes of this section, a person qualifies as a resident of the state if at the time of 08 application for the loan the person 09 (A) has been physically present in the state for at least one year 10 immediately before the time of application for the loan with the intent to 11 remain indefinitely; 12 (B) is dependent on a parent or guardian for care, the parent or 13 guardian has been present in the state for at least one year immediately before 14 the time of application for the loan with the intent to remain indefinitely, and 15 the person has been present in the state for at least one year of the immediately 16 preceding five years except that the commission may by a two-thirds vote, 17 acting upon a written appeal by the person, grant an exemption to the 18 requirement that the person has been present in the state for one year of the 19 immediately preceding five years; 20 (C) has been physically present in the state for at least one year 21 immediately before the applicant was absent from the state, the person intends 22 to return permanently to the state, and the absence is due solely to 23 (i) serving an initial period of up to three years on 24 active duty as a member of the armed forces of the United States; 25 (ii) serving for up to three years as a full-time volunteer 26 under the Peace Corps Act; 27 (iii) serving for up to three years as a full-time volunteer 28 under the Domestic Volunteer Service Act of 1973; 29 (iv) required medical care for the applicant or the 30 applicant's immediate family; 31 (v) being a person who otherwise qualifies as a resident

01 and is accompanying a spouse who qualifies as a resident under (i) - 02 (iv) of this paragraph; 03 (vi) an absence allowed under (D)(i) - (iv) of this 04 paragraph; or 05 (D) is a dependent of a parent or guardian who has been 06 physically present in the state for at least one year immediately before the 07 parent or guardian was absent from the state, the parent or guardian intends to 08 return permanently to the state, and the absence is due solely to 09 (i) participating in a foreign exchange student program 10 recognized by the commission; 11 (ii) attending a school as a full-time student; 12 (iii) full-time employment by the state; 13 (iv) being a member of or employed full-time by the 14 state's congressional delegation; 15 (v) being a person who otherwise qualifies as a resident 16 and is accompanying a spouse who qualifies as a resident under (i) - 17 (iv) of this paragraph; 18 (4) does not have a past due child support obligation established by 19 court order or by the child support enforcement division under AS 25.27.160 - 20 25.27.220 at the time of application or loan disbursement; 21 (5) has not, within the previous five years, had a loan discharged or 22 written off by the commission for any reason; 23 (6) does not have a status, at the time of the application for a loan or 24 disbursement of loan funds, that would prevent the person from repaying the loan as it 25 becomes due; 26 (7) has not within the previous seven years defaulted on another loan 27 made to the person by a lending entity unless the person can show good faith efforts to 28 repay the loan and extraordinary circumstances that led to the default; [AND] 29 (8) does not have a credit history, at the time of application for a loan, 30 that demonstrates chronic inability or unwillingness to pay an extension of credit or 31 loan as it becomes due; and

01 (9) has complied with the military selective service registration 02 requirements imposed under 50 U.S.C. App. 453 (Military Selective Service Act), 03 if those requirements were applicable to the person. 04 * Sec. 2. AS 14.43.172(c) is amended to read: 05 (c) In addition to the provisions of (a) of this section, a borrower is eligible for 06 a loan under AS 14.43.170 - 14.43.175 if the borrower 07 (1) is not delinquent on and has never been in default on a loan 08 previously awarded by the commission; 09 (2) at the time of application or loan disbursement does not have a past 10 due child support obligation established by court order or by the child support 11 enforcement division under AS 25.27.160 - 25.27.220; 12 (3) has not, within the previous five years, had a loan discharged or 13 written off by the commission for any reason; 14 (4) does not have a status, at the time of application for a loan or 15 disbursement of loan money, that would prevent the borrower from repaying the loan 16 as it becomes due; 17 (5) has not within the previous five years defaulted on another loan 18 made to the borrower by a lending entity unless the borrower can show good faith 19 efforts to repay the loan and extraordinary circumstances that led to the default; 20 [AND] 21 (6) does not have a credit history, at the time of application for a loan, 22 that demonstrates chronic inability or unwillingness to pay an extension of credit or 23 loan as it becomes due; and 24 (7) has complied with the military selective service registration 25 requirements imposed under 50 U.S.C App. 453 (Military Selective Service Act), 26 if those requirements were applicable to the person. 27 * Sec. 3. AS 14.43.750(a) is amended to read: 28 (a) A person may apply for and obtain a family education loan on behalf of a 29 family member if 30 (1) the borrower 31 (A) is a resident of the state at the time of application for the

01 loan; for purposes of this paragraph, a borrower qualifies as a resident of the 02 state if the borrower has been physically present in the state for at least one 03 year immediately before the time of application for the loan with the intent to 04 remain indefinitely or, if not physically present in the state, the borrower has 05 not declared or established residency in another state, intends to return 06 permanently to the state, and the absence meets the requirements imposed 07 under AS 14.43.125(a)(3)(C)(i) - (vi); 08 (B) satisfies the requirements of AS 14.43.125(a)(6) - (9) 09 [AS 14.43.125(a)(6) - (8)]; 10 (2) the family member 11 (A) is enrolled as a full-time student in a career education, 12 associate, baccalaureate, or graduate degree program; or 13 (B) is a graduate of a high school or the equivalent, or 14 scheduled for graduation from a high school within six months, who, at the 15 time of loan disbursement, will be enrolled in compliance with (A) of this 16 paragraph; and 17 (3) neither the borrower nor the family member 18 (A) is delinquent or has ever been in default on a loan 19 previously awarded by the commission; 20 (B) is past due on a child support obligation established by 21 court order or by the child support enforcement division under AS 25.27.160 - 22 25.27.220 at the time of application or loan disbursement; 23 (C) has, within the previous five years, had a loan discharged 24 or written off by the commission for any reason. 25 * Sec. 4. AS 39.25.160 is amended by adding a new subsection to read: 26 (k) A person may not be employed in the classified, partially exempt, or 27 exempt service unless the person has complied with the military selective service 28 registration requirements imposed under 50 U.S.C. App. 453 (Military Selective 29 Service Act), if those requirements were applicable to the person. Notwithstanding 30 AS 39.25.110, this subsection applies to employees in the exempt service except 31 (1) a justice, a judge, or a magistrate;

01 (2) the governor or the lieutenant governor; 02 (3) a member of the legislature; 03 (4) a person appointed under art. III, sec. 25, or art. III, sec. 26, 04 Constitution of the State of Alaska. 05 * Sec. 5. AS 43.23.005(a) is amended to read: 06 (a) An individual is eligible to receive one permanent fund dividend each year 07 in an amount to be determined under AS 43.23.025 if the individual 08 (1) applies to the department; 09 (2) is a state resident on the date of application; 10 (3) was a state resident during the entire qualifying year; 11 (4) has been physically present in the state for at least 72 consecutive 12 hours at some time during the prior two years before the current dividend year; 13 (5) is 14 (A) a citizen of the United States; 15 (B) an alien lawfully admitted for permanent residence in the 16 United States; 17 (C) an alien with refugee status under federal law; or 18 (D) an alien that has been granted asylum under federal law; 19 [AND] 20 (6) was, at all times during the qualifying year, physically present in 21 the state or, if absent, was absent only as allowed in AS 43.23.008; and 22 (7) was in compliance during the qualifying year with the military 23 selective service registration requirements imposed under 50 U.S.C. App. 453 24 (Military Selective Service Act), if those requirements were applicable to the 25 individual, or has come into compliance after being notified of the lack of 26 compliance. 27 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 APPLICABILITY. This Act applies to a person who seeks employment with the 30 state, applies for an education loan, supplemental education loan, or family education loan 31 under AS 14.43, or applies for a permanent fund dividend under AS 43.23 on or after the

01 effective date of the appropriate corresponding section of this Act. 02 * Sec. 7. Sections 1 - 3 and 6 of this Act take effect July 1, 2003. 03 * Sec. 8. Except as provided in sec. 7 of this Act, this Act takes effect January 1, 2004.