HB 229: "An Act relating to the Alaska higher education investment fund; and relating to the Alaska Student Loan Corporation."
00 HOUSE BILL NO. 229 01 "An Act relating to the Alaska higher education investment fund; and relating to the 02 Alaska Student Loan Corporation." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.42.200 is amended to read: 05 Sec. 14.42.200. General powers. In addition to other powers granted in this 06 chapter, the corporation may 07 (1) sue and be sued in its own name; 08 (2) adopt an official seal; 09 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 10 to carry out the purposes of this chapter; 11 (4) make and execute agreements, contracts, and other instruments 12 necessary or convenient in the exercise of the powers and functions of the corporation, 13 including contracts with a person or governmental entity; 14 (5) receive, take, hold, and administer, on behalf of the corporation and
01 for any of its purposes, any appropriation, gift, grant, bequest, devise, or donation of 02 real property or personal property; in this paragraph, "property" includes 03 (A) money; and 04 (B) life estates, leases, or other interests in property; 05 (6) borrow money as provided in this chapter to carry out its corporate 06 purposes and issue its obligations as evidence of the borrowing, if that obligation of 07 the corporation is not a debt of the state; 08 (7) include in a borrowing the amounts to pay financing charges, 09 interest on the obligations for a period not exceeding one year after the date on which 10 the corporation estimates funds will otherwise be available to pay the interest, 11 consultant, advisory, and legal fees, and other expenses necessary or incident to the 12 borrowing; 13 (8) invest or reinvest, subject to its contracts with noteholders and 14 bondholders, money held by the corporation as set out in AS 37.10.071; 15 (9) set and collect interest, fees, and charges in connection with 16 education loans or repayment obligations held by the corporation and its servicing 17 agents; in this paragraph, "charges" includes costs of financing by the corporation, 18 service charges, insurance premiums, and other costs incurred by the corporation in 19 carrying out its corporate purposes; 20 (10) gather information on postsecondary education financial resources 21 available to residents of this state and disseminate the information to reasonably assure 22 that qualified residents are aware of those financial resources; 23 (11) service education loans and repayment obligations held by the 24 corporation; 25 (12) finance, purchase, or participate in the financing or purchasing of 26 education loans; 27 (13) contract in advance for the financing, purchasing, or sale of 28 education loans; 29 (14) sell or participate in the sale, either public or private and on terms 30 authorized by the board, of education loans to the Student Loan Marketing Association 31 or to other purchasers;
01 (15) collect and pay reasonable fees and charges in connection with the 02 financing, purchase, sale, and servicing of education loans and repayment obligations; 03 (16) enter into agreements with the federal government, including 04 guaranty agreements and supplemental guaranty agreements as described in 20 U.S.C. 05 1001 - 1155, as amended, as necessary to provide for the receipt by the corporation of 06 administrative allowances and other benefits available under 20 U.S.C. 1001 - 1155, 07 as amended; 08 (17) administer federal money allotted to the state involving insured 09 education loans and related administrative costs and other matters; 10 (18) enter into agreements with the commission relating to education 11 loans and repayment obligations, the administration of the financial aid and loan 12 programs under AS 14.42.033, AS 14.43.091 - 14.43.849 [AS 14.43.091 - 14.43.750], 13 14.43.990, and AS 14.44, and the payment of and security for bonds of the 14 corporation; 15 (19) to the extent permitted under contracts with bondholders, consent 16 to the modification of the rate of interest, time of payment of an installment of 17 principal or interest, or other terms of an education loan or repayment obligation held 18 by the corporation; 19 (20) procure insurance against any loss in connection with the 20 operation of its programs; 21 (21) provide advisory services to borrowers and other participants in 22 the corporation's programs; 23 (22) enter into credit facility agreements and make pledges, covenants, 24 and agreements with respect to the repayment of borrowings under the credit facility 25 agreements; 26 (23) develop and implement education financing programs; in this 27 paragraph, "programs" includes 28 (A) programs listed in AS 14.42.030(b)(1); 29 (B) programs for the guaranteeing, servicing, originating, and 30 financing of education loans for borrowers located both inside and outside the 31 state; and
01 (C) federal financial aid programs made under federal law; and 02 (24) perform acts that may be necessary or appropriate to carry out 03 effectively the general objectives and purposes of the corporation under AS 14.42.100 04 - 14.42.990. 05 * Sec. 2. AS 14.42 is amended by adding a new section to read: 06 Sec. 14.42.203. Creation of subsidiary. (a) The corporation may create a 07 subsidiary corporation for the purpose of financing or facilitating the financing of 08 medical education under AS 14.42.033, the Alaska education grant program under 09 AS 14.43.400 - 14.43.420, and the Alaska performance scholarship program under 10 AS 14.43.810 - 14.43.849. A subsidiary corporation created under this section may be 11 incorporated under AS 10.20.146 - 10.20.166. The corporation may transfer assets of 12 the corporation to a subsidiary created under this section. 13 (b) Notwithstanding AS 14.42.300(a), a subsidiary created under this section 14 is subject to AS 37. 15 (c) Unless otherwise provided by the corporation, the debts, liabilities, and 16 obligations of a subsidiary corporation created under this section are not the debts, 17 liabilities, or obligations of the corporation. 18 * Sec. 3. AS 14.43.915(a) is amended to read: 19 (a) The Alaska education grant account is created as an account of [IN] the 20 Alaska Student Loan Corporation [GENERAL FUND]. Money may be 21 appropriated to the account from the Alaska higher education investment fund under 22 AS 37.14.750 and from other sources. The commission may use the money in the 23 account without further appropriation to pay grants awarded under AS 14.43.400 - 24 14.43.420 and to pay the cost of administration of the Alaska education grant program 25 created under AS 14.43.400. 26 * Sec. 4. AS 14.43.915(b) is amended to read: 27 (b) The Alaska performance scholarship award account is created as an 28 account of [IN] the Alaska Student Loan Corporation [GENERAL FUND]. Money 29 may be appropriated to the account from the Alaska higher education investment fund 30 under AS 37.14.750 and from other sources. The commission may use the money in 31 the account without further appropriation to pay scholarships awarded to students
01 under AS 14.43.810 - 14.43.849. 02 * Sec. 5. AS 37.14.750(a) is amended to read: 03 (a) The Alaska higher education investment fund is established as a separate 04 fund of [IN] the Alaska Student Loan Corporation [GENERAL FUND] for the 05 purpose of making grants awarded under AS 14.43.400 - 14.43.420 by appropriation 06 to the account established under AS 14.43.915(a), [AND OF] making scholarship 07 payments to qualified postsecondary institutions for students under AS 14.43.810 - 08 14.43.849 by appropriation to the account established under AS 14.43.915(b), and 09 funding agreements for medical education under AS 14.42.033. Money in the fund 10 does not lapse. The fund consists of 11 (1) money appropriated to the fund; 12 (2) income earned on investment of fund assets; 13 (3) donations to the fund; and 14 (4) money redeposited under AS 14.43.915(c). 15 * Sec. 6. AS 37.14.750(c) is amended to read: 16 (c) As soon as is practicable after July 1 of each year, the Alaska Student 17 Loan Corporation [COMMISSIONER OF REVENUE] shall determine the market 18 value of the fund established in this section on June 30 for the immediately preceding 19 fiscal year. The corporation [COMMISSIONER] shall identify seven percent of that 20 amount as available for appropriation as follows: 21 (1) one-third for the grant account established under AS 14.43.915(a), 22 from which the Alaska Commission on Postsecondary Education may award grants; 23 and 24 (2) two-thirds for the scholarship account established under 25 AS 14.43.915(b), from which the Alaska Commission on Postsecondary Education 26 may award scholarships.