00                            HOUSE BILL NO. 234                                                                          
01 "An Act relating to the education loan repayment program and establishing the                                           
02 education loan repayment fund."                                                                                         
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 14.43 is amended by adding new sections to read:                                                   
05                Article 8A. Education Loan Repayment Program.                                                          
06            Sec. 14.43.430. Program established. The education loan repayment program                                  
07       is established to recruit individuals in occupations or professions for which there is a                          
08       severe shortage of qualified individuals in this state. The program provides education                            
09       loan repayment grants to eligible individuals who have obtained associate or higher                               
10       level college or university degrees required for employment in occupations or                                     
11       professions for which there are identified severe shortages of qualified individuals in                           
12       the state workforce. The program shall be administered by the commission.                                         
13            Sec. 14.43.432. Education loan repayment fund. (a) There is established in                                 
14       the corporation the education loan repayment fund consisting of appropriations to the                             

01       fund. The appropriations are not one-year appropriations and do not lapse under                                   
02       AS 37.25.010. Income from the fund may be appropriated to the fund. The corporation                               
03       shall administer the fund and may use money in it for the costs of administration.                                
04            (b)  The commission may use money in the education loan repayment fund for                                   
05       grants under AS 14.43.434 - 14.43.449. The corporation and the commission may                                     
06       enter into agreements relating to the administration of the fund and the education loan                           
07       repayment program.                                                                                                
08            Sec. 14.43.434. Education loan repayment grants. (a) The commission may                                    
09       award an education loan repayment grant to an eligible individual for one or more                                 
10       years in an amount not to exceed $7,500 for each year. The commission shall use the                               
11       grant money to make payments on behalf of the grant recipient on the principal and                                
12       interest of education loans owed by the recipient in obtaining an associate or higher                             
13       level college or university degree if the degree is required to engage in an occupation                           
14       or profession for which there is a severe shortage of qualified individuals in this state.                        
15            (b)  A grant or cumulative grants may not be awarded for more than five years,                               
16       and total grant money awarded may not exceed 50 percent of the balance, including                                 
17       principal and interest, outstanding on educational loans owed by the recipient at the                             
18       time the recipient is awarded the first grant.                                                                    
19            (c)  To be eligible for an education loan repayment grant, the individual shall                              
20                 (1)  apply on a form prepared by the commission and submit all                                          
21       information required by the commission for purposes of determining eligibility;                                   
22                 (2)  be a state resident on the date the application is filed;                                          
23                 (3)  have been employed or otherwise engaged full time in this state in                                 
24       the occupation or profession for which there is a severe shortage of qualified                                    
25       individuals for at least 12 months immediately before the month the application is                                
26       filed;                                                                                                            
27                 (4)  be employed or otherwise engaged full time in this state in the                                    
28       occupation or profession for which there is a severe shortage of qualified individuals                            
29       on the date the application is filed; and                                                                         
30                 (5)  meet any additional eligibility requirements imposed under                                         
31       regulations adopted by the commission.                                                                            

01            Sec. 14.43.436. Continuing eligibility. (a) A recipient may continue to receive                            
02       benefits under an education loan repayment grant only while the recipient maintains                               
03       state residency and continues to be employed or otherwise engaged full time in this                               
04       state in the occupation or profession for which there is a severe shortage of qualified                           
05       individuals. A recipient shall immediately inform the commission when the recipient                               
06       becomes ineligible to continue to receive grant benefits under this section.                                      
07            (b)  If the commission makes a loan payment on behalf of a recipient who has                                 
08       ceased to be eligible for grant benefits, the recipient shall repay the amount of the                             
09       improper payment immediately. This subsection is in addition to any remedy or                                     
10       penalty that may be imposed according to another provision of law.                                                
11            Sec. 14.43.438. Pre-eligibility determinations. The commission may                                         
12       establish a procedure under which an individual may seek a determination by the                                   
13       commission as to whether the individual engaged in a particular occupation or                                     
14       profession or course of study will become eligible for an education loan repayment                                
15       grant, together with suggestions to ensure future eligibility.                                                    
16            Sec. 14.43.449. Definition. For purposes of AS 14.43.430 - 14.43.449, "severe                              
17       shortage" has the meaning given in AS 14.43.415(b).