Legislature(1995 - 1996)

1996-04-23 Senate Journal

Full Journal pdf

1996-04-23                     Senate Journal                      Page 3457
SB 301                                                                       
CS FOR SENATE BILL NO. 301(FIN) am An Act relating to                          
postsecondary education; and providing for an effective date was               
read the third time.                                                           
                                                                               
Senator Salo moved that the bill be returned to second reading for             
the purpose of a specific amendment, that being Amendment No. 2.               
Objections were heard.                                                         
                                                                               
The question being: Shall the bill be returned to second reading for           
the purpose of a specific amendment?  The roll was taken with the              
following result:                                                              
                                                                               
CSSB 301(FIN) am                                                               
Return to Second for Specific Amendment                                        
                                                                               
YEAS:  15   NAYS:  5   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Adams, Donley, Duncan, Ellis, Green, Hoffman, Kelly,                    
Lincoln, R.Phillips, Rieger, Salo, Sharp, Taylor, Torgerson, Zharoff           
                                                                               
Nays:  Frank, Halford, Leman, Miller, Pearce                                   
                                                                               
and so, the bill was returned to second reading.                               
                                                                               
Senator Salo offered Amendment No. 2 :                                          
                                                                               
Page 2, following line 11:                                                     
	Insert new bill sections to read:                                             
   "* Sec. 2.  AS14.07.020(a) is amended by adding a new                     
paragraph to read:                                                             
		(16)  administer the provisions of AS14.48                                   
(regulation of postsecondary educational institutions).                        
   * Sec. 3.  AS14.07.020 is amended by adding a new section to              
read:                                                                          
	(c)  The department has the following functions, advisory to                  
the governing boards of institutions of public and private higher              
education in the state, to the governor, the legislature, and to other         
appropriate state and federal officials:                                       
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3458
SB 301                                                                       
		(1)  coordinate the development of comprehensive                             
plans for the orderly, systematic growth of public and private                 
postsecondary education, including community colleges and                      
occupational education, in the state and submit recommendations on             
the need for, and location of, new facilities and programs;                    
		(2)  advise as to the functions and purposes of the                          
colleges and universities, both public and private, in the state and           
counsel as to the programs appropriate to each; and                            
		(3)  review and advise as to the working of all                              
consortia and other cooperative agreements between the institutions            
of higher education in the state that are parties to them.                     
   * Sec. 4.  AS14.07.030 is amended by adding a new paragraph               
to read:                                                                       
		(14)  establish task forces, committees, or                                  
subcommittees, not necessarily consisting of department officers or            
employees, to advise and assist the department in carrying out its             
postsecondary functions assigned by AS14.07.020(a) and (c), and                
federal statute.  The department may contract with, or use, existing           
institutions of higher education or other individuals or organizations         
to make studies, conduct surveys, submit recommendations, or                   
otherwise contribute to the work of the department.                            
   * Sec. 5.  AS14.07 is amended by adding new sections to read:             
	Sec. 14.07.032.  CONSORTIA.  All parties that are signatory                   
to a consortium agreement between the University of Alaska and a               
private university or college must abide by a decision rendered by             
the department when disagreements arise or exist between the parties.          
 For purposes of this section and AS14.07.020, "consortium" means              
a cooperative arrangement between two or more public or private                
institutions of higher education specified in agreements or                    
memoranda of understanding to permit sharing of facilities,                    
instructional opportunities, and other educational services in such a          
way that the integrity of each institution party to the consortium is          
preserved while at the same time the institutions cooperatively plan           
the academic calendar, scheduling, use of personnel and facilities,            
and educational programs and offerings to the maximum advantage                
of the students and faculties of the institutions that are parties to a        
consortium.                                                                    
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3459
SB 301                                                                       
	Sec. 14.07.033.  COLLECTION OF DATA.  The department                          
may require the institutions of public and private higher education            
and other institutions of postsecondary education in the state to              
submit data on costs, selection and retention of students, enrollments,        
plant capacities and use, and other matters pertinent to effective             
planning and coordination, and shall furnish information concerning            
these matters to the governor, to the legislature, and to other state          
and federal agencies as requested by them."                                    
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 2, lines 22 - 25:                                                         
	Delete all material and insert:                                               
	"Sec. 14.42.120.  CORPORATION GOVERNING BODY.                                 
(a)  The corporation shall be governed by a board of directors                 
consisting of the commissioner of revenue, the commissioner of                 
administration, a person representing the Department of Education              
appointed by the governor, and four members of the public appointed            
by the governor.  The governor's appointees shall serve at the                 
pleasure of the governor for staggered four-year terms."                       
                                                                               
Page 4, following line 21:                                                     
	Insert new material to read:                                                  
	"(c)  The corporation may enter into agreements with                          
government or postsecondary education officials of this state or other         
states to provide postsecondary educational services and programs to           
residents of this state pursuing a medical education.  An agreement            
with another state must be limited to services and programs that are           
unavailable in this state.                                                     
   * Sec. 11.  AS14.42.200(9) is amended to read:                            
		(9)  collect from a borrower amounts owed with                               
respect to a student loan held by the corporation ªHAS                     
PURCHASEDß;"                                                                   
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 5, line 8, following "corporation,":                                      
	Insert "used to pay the costs of administration of the                      
fund,"                                                                       
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3460
SB 301                                                                       
Page 5, lines 9 and 10:                                                        
	Delete "AS 14.43.090 - 14.43.325, 14.43.600 - 14.43.700, or                   
14.43.710 - 14.43.790."                                                        
	Insert "AS 14.43, and used to pay the costs of                              
administering the loans and of collecting delinquent loans if those            
costs are not recovered from the borrower ªAS14.43.090 -                     
14.43.325, 14.43.600 - 14.43.700, or 14.43.710 - 14.43.790ß."                  
                                                                               
Page 8, line 12:                                                               
	Delete "commission"                                                           
	Insert "corporation ªCOMMISSIONß"                                         
                                                                               
Page 12, line 2:                                                               
	Delete "scholarship"                                                          
	Insert "student ªSCHOLARSHIPß"                                            
                                                                               
Page 15, line 15, following "loans":                                           
	Insert "and for the purposes allowed under AS14.42.210"                   
                                                                               
Page 15, lines 27 - 30:                                                        
	Delete "loans; ªTHE FORM MUST INCLUDE A                                       
REQUIREMENT THATß the applicant must provide ªSUPPLYß a                    
high school academic transcript and a statement of intent to enter a           
teaching career at the elementary or secondary school level in the             
state."                                                                        
	Insert "loans ª; THE FORM MUST INCLUDE A                                      
REQUIREMENT THAT THE APPLICANT SUPPLY A HIGH                                   
SCHOOL ACADEMIC TRANSCRIPT AND A STATEMENT OF                                  
INTENT TO ENTER A TEACHING CAREER AT THE                                       
ELEMENTARY OR SECONDARY SCHOOL LEVEL IN THE                                    
STATEß."                                                                       
                                                                               
Page 16, lines 8 - 10:                                                         
	Delete                                                                        
		"(4)  submit to the local school board an application                        
on a form provided by the corporation ªCOMMISSIONß under               
AS14.43.630(a)(2); an application may be submitted six months                  
before graduation from high school; and"                                       
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3461
SB 301                                                                       
	Insert                                                                        
		"(4)  submit to the local school board, at least three                     
months before graduation from high school, an application on a             
form provided by the corporation ªCOMMISSIONß under                      
AS14.43.630(a)(2); the applicant shall supply a high school                  
transcript and a statement of intent to enter a teaching career at             
the elementary or secondary school level in the state ªAN                    
APPLICATION MAY BE SUBMITTED SIX MONTHS BEFORE                                 
GRADUATION FROM HIGH SCHOOLß; and"                                             
                                                                               
Page 16, lines 23 - 25:                                                        
	Delete "to pay the costs of collecting family education loans                 
that are in default if those costs are not recovered from the family,          
and to pay the costs of administering the account"                             
      Insert "and for the purposes allowed under AS14.42.210               
[TO PAY THE COSTS OF COLLECTING FAMILY EDUCATION                               
LOANS THAT ARE IN DEFAULT IF THOSE COSTS ARE NOT                               
RECOVERED FROM THE FAMILY, AND TO PAY THE COSTS                                
OF ADMINISTERING THE ACCOUNTß"                                                 
                                                                               
Page 17, following line 1:                                                     
	Insert a new bill section to read:                                            
   "* Sec. 45.  AS14.43.730 is amended to read:                              
	Sec. 14.43.730.  ADMINISTRATION.  The family education                        
loan program shall be administered by the corporation                      
[COMMISSIONß under regulations that it adopts."                                
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 17, line 20, through page 19, line 8:                                     
	Delete all material and insert new bill sections to read:                     
   "* Sec. 49.  AS14.48.010(a) is amended to read:                           
	(a)  It is the purpose of this chapter to provide for the                     
protection, education, and welfare of the citizens of the state, its           
postsecondary educational institutions, and its students, by                   
		(1)  establishing minimum standards concerning                               
quality of education, ethical and business practices, health and safety,       
and fiscal responsibility, to protect against substandard, transient,          
unethical, deceptive, or fraudulent institutions and practices;                
		(2)  prohibiting the granting of false or misleading                         
educational credentials;                                                       

1996-04-23                     Senate Journal                      Page 3462
SB 301                                                                       
		(3)  regulating the use of academic terminology in                           
designating educational institutions;                                          
		(4)  prohibiting misleading literature, advertising,                         
solicitation, or representation by educational institutions or their           
agents;                                                                        
		(5)  providing for the preservation of essential                             
academic records; and                                                          
		(6)  providing certain rights and remedies to the                            
public and the department ªCOMMISSIONß necessary to carry out              
the purposes of this chapter.                                                  
   * Sec. 50.  AS14.48.020 is amended to read:                               
	Sec. 14.48.020.  AUTHORIZATION AND PERMITS                                    
REQUIRED.  A person may not                                                    
		(1)  operate a postsecondary educational institution                         
in the state unless the institution has a valid authorization to operate       
issued under this chapter or is exempt from the provisions of this             
chapter;                                                                       
		(2)  offer itself or through an agent enrollment or                          
instruction in, or the granting of educational credentials from, a             
postsecondary educational institution, whether the institution is in or        
outside the state, unless the agent is a natural person and has a              
currently valid agent's permit issued under this chapter or is exempt          
from the provisions of this chapter;                                           
		(3)  accept contracts or enrollment applications of                          
prospective students from an agent who does not have a current                 
permit as required by this chapter; however, the department                
[COMMISSIONß may adopt regulations to permit the rendering of                  
legitimate public information services without a ªTHEß permit;             
		(4)  instruct or educate, ªORß offer to instruct or                          
educate, enroll or offer to enroll, contract or offer to contract or           
award an educational credential, or contract with an institution or            
person to do so, in or outside the state, unless that person is in             
compliance with the minimum standards set out in AS14.48.060, the              
criteria established by the department ªCOMMISSIONß under                  
AS14.48.050(1), and the regulations adopted by the department              
[COMMISSIONß under AS14.48.050(7);                                             
		(5)  use the term "university" or "college" without                          
authorization to do so from the department ªCOMMISSIONß;                   
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3463
SB 301                                                                       
		(6)  grant, or offer to grant, educational credentials                       
[,ß without authorization to do so from the department                     
[COMMISSIONß.                                                                  
   * Sec. 51.  AS14.48.030(b) is amended to read:                            
	(b)  The following educational programs or services and                       
educational institutions are exempt from the provisions of this                
chapter or portions of them, as determined by the department               
[COMMISSIONß:                                                                  
		(1)  education sponsored by a bona fide trade,                               
business, labor, professional, or fraternal association or organization,       
recognized by the department, ªCOMMISSIONß and conducted                   
solely for that association's or organization's membership ª,ß or              
offered on a no-fee basis;                                                     
		(2)  education solely avocational or recreational in                         
nature and institutions offering avocational or recreational education         
exclusively;                                                                   
		(3)  education offered by charitable organizations,                          
recognized by the department ªCOMMISSIONß, if the education is             
not advertised or promoted as leading toward educational credentials;          
		(4)  nonprofit postsecondary educational institutions                        
offering undergraduate or graduate educational programs conducted              
in the state, but not by correspondence, that ªWHICHß are                  
acceptable for credit toward an associate, bachelor's, or graduate             
degree;                                                                        
		(5)  postsecondary educational institutions                                  
established, operated, and governed by the United States, a state, or      
its political subdivisions.                                                    
   * Sec. 52.  AS14.48.040 is amended to read:                               
	Sec. 14.48.040.  DEPARTMENT ªCOMMISSIONß TO                               
ADMINISTER CHAPTER.  The commissioner of education                         
[ALASKA COMMISSION ON POSTSECONDARY EDUCATIONß                                 
shall administer this chapter and may hire necessary personnel.  The           
department ªCOMMISSIONß may obtain from departments,                       
commissions, and other state agencies information and assistance               
needed to carry out the provisions of this chapter.                            
   * Sec. 53.  AS14.48.050 is amended to read:                               
	Sec. 14.48.050.  POWERS AND DUTIES OF                                         
DEPARTMENT ªCOMMISSIONß.  The department                               
[COMMISSIONß shall                                                             
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3464
SB 301                                                                       
		(1)  establish minimum criteria consistent with                              
AS14.48.060 including quality of education, ethical and business               
practices, health and safety, and fiscal responsibility that applicants        
for authorization to operate, or for an agent's permit, must meet              
before the authorization or permit is issued;                                  
		(2)  receive, investigate, and act upon applications                         
for authorization to operate postsecondary educational institutions and        
applications for agent's permits;                                              
		(3)  maintain a list of postsecondary educational                            
institutions and agents authorized to operate in the state under this          
chapter;                                                                       
		(4)  keep current and make available as public                               
information the list of institutions and agents;                               
		(5)  enter into interstate reciprocity agreements with                       
similar agencies in other states ª,ß if in the judgment of the                 
department ªCOMMISSIONß the agreements will be helpful in                  
carrying out the purposes of this chapter;                                     
		(6)  receive and maintain as a permanent file, copies                        
of academic records maintained in accordance with                              
AS14.48.060(b)(6);                                                             
		(7)  adopt regulations and procedures necessary or                           
appropriate for the conduct of its work and the implementation of              
this chapter under AS44.62 (Administrative Procedure Act);                     
		(8)  investigate on its own initiative, or in response                   
to a complaint lodged with it, persons subject to ª,ß or reasonably            
believed by the department ªCOMMISSIONß to be subject to ª,ß the           
jurisdiction of this chapter; ªANDß in connection with the                     
investigation subpoena persons, books, records, or documents related           
to the investigation; require answers in writing under oath to                 
questions propounded by the department ªCOMMISSIONß and                    
administer oaths or affirmations to persons in connection with the             
investigation; and, for the purpose of examination at all reasonable           
times, shall have access to, and the right to copy, documentary                
evidence of a corporation that is under investigation or being                 
proceeded against;                                                             
		(9)  exercise other necessary powers and duties in                           
conformity with the provisions of this chapter that, in the judgment           
of the department ªCOMMISSIONß, are necessary to carry out the             
provisions of this chapter.                                                    
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3465
SB 301                                                                       
   * Sec. 54.  AS14.48.060 is amended to read:                               
	Sec. 14.48.060.  MINIMUM STANDARDS.  (a)  In                                  
establishing the criteria required by AS14.48.050(1), the department        
ªCOMMISSIONß shall require compliance with the minimum                        
standards set out in (b) of this section.                                      
	(b)  A postsecondary educational institution must be                          
maintained and operated ª,ß or, in the case of a new institution, must     
demonstrate that it can be maintained and operated so that                     
		(1)  the quality and content of each course or                               
program of instruction, training, or study ªARE SUCH ASß may                   
reasonably and adequately achieve the stated objective for which the           
course or program is offered;                                                  
		(2)  the institution has or has access to adequate                           
space, equipment, instructional materials, and personnel where                 
applicable to achieve the stated objective of the course or program            
of study and to provide education of good quality;                             
		(3)  the education or experience qualifications of                           
directors, administrators, supervisors, and instructors ªARE SUCH              
ASß may reasonably ensure that the students will receive education             
consistent with the objectives of the course or program of study;              
		(4)  the institution provides a catalog or brochure                          
containing information describing the programs offered, program                
objectives, length of program, schedule of tuition, fees, ªANDß all            
other charges and expenses necessary for completion of the course              
of study, cancellation and refund policies, and other material facts           
concerning the institution and the program or course of instruction            
that are reasonably likely to affect the decision of the student to            
enroll, together with any other disclosures specified by the                   
department ªCOMMISSIONß by regulation; and that this information           
is provided to prospective students before enrollment;                         
		(5)  upon satisfactory completion of training, the                           
student is given appropriate educational credentials by the institution,       
indicating that the course of instruction or study has been                    
satisfactorily completed by the student;                                       
		(6)  adequate records are maintained by the                                  
institution to show attendance, progress ª,ß or grades, and that               
satisfactory standards are enforced relating to attendance, progress,          
and performance;                                                               
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3466
SB 301                                                                       
		(7)  the institution is maintained and operated in                           
compliance with all pertinent ordinances and laws relating to the              
safety and health of persons upon the premises of the institution;             
		(8)  the institution is financially sound and capable                        
of fulfilling its commitments to students;                                     
		(9)  neither the institution nor its agents engage in                        
advertising, sales, collection, credit, or other practices that ªWHICHß    
are false, deceptive, misleading, or unfair;                                   
		(10)  the chief executive officer, trustees, directors,                      
owners, administrators, supervisors, staff, and instructors of the             
institution are of good reputation and character and have not been             
convicted of a violation of AS14.48.020, ªORß 14.48.150, ªORß          
AS45.50.471 - 45.50.561, or a comparable law in another state or           
province;                                                                      
		(11)  the student housing owned, maintained, or                              
approved by the institution is appropriate, safe, and adequate;                
		(12)  the institution has a fair and equitable                               
cancellation and refund policy; and                                            
		(13)  the charges set by the institution for tuition,                        
fees, books, and supplies are fair and equitable.                              
	(c)  The department may accept accreditation                              
[ACCREDITATIONß by national or regional accrediting agencies                   
recognized by the department ªCOMMISSION MAY BE                            
ACCEPTED BY THE COMMISSIONß as evidence of compliance                          
with the minimum standards established by this section and the                 
criteria established under AS14.48.050(1).  However, the                       
department ªCOMMISSIONß may require further evidence and make              
further investigation as ªMAY BEß necessary. If the institution as           
a whole is not accredited, accreditation ªACCREDITATIONß by a                
recognized, specialized accrediting agency may be accepted as                  
evidence of compliance only as to the portion or program of an                 
institution accredited by the accrediting agency ªIF THE                       
INSTITUTION ASA WHOLE IS NOT ACCREDITEDß.                                      
   * Sec. 55.  AS14.48.070(a) is amended to read:                            
	(a)  Each postsecondary educational institution desiring to                   
operate in this state shall apply to the department ªCOMMISSIONß,          
upon forms provided by the department ªCOMMISSIONß.  The                   
application must ªSHALLß be accompanied by a catalog or brochure           
published, or proposed to be published by the institution,  containing         
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3467
SB 301                                                                       
the information specified in AS14.48.060(b)(4).  The application               
shall also be accompanied by evidence of a surety bond or other                
deposit as required by AS14.48.100, and by the required fees.                  
   * Sec. 56.  AS14.48.070(b) is amended to read:                            
	(b)  Following review of the application and after necessary                  
investigation of the applicant the department ªCOMMISSIONß shall           
either grant or deny authorization to operate to the applicant.  A             
grant of authorization to operate may be on those terms and                    
conditions the department ªCOMMISSIONß may prescribe.                      
   * Sec. 57.  AS14.48.070(c) is amended to read:                            
	(c)  The authorization to operate must be in a form approved                  
by the  department ªCOMMISSIONß and must include                           
		(1)  the date of issuance, effective date, and term of                       
approval;                                                                      
		(2)  the name and address of the institution;                                
		(3)  the authority for approval;                                             
		(4)  any condition or limitation of the authorization,                       
as considered necessary by the department ªCOMMISSIONß.                    
   * Sec. 58.  AS14.48.070(f) is amended to read:                            
	(f)  At least 60 days before the expiration of its ªANß                   
authorization to operate, the institution shall complete and file with         
the department ªCOMMISSIONß an application form for renewal                
[OF ITS AUTHORIZATION TO OPERATEß.  The renewal                                
application shall be reviewed and acted upon as provided for an                
original application.                                                          
   * Sec. 59.  AS14.48.070(g) is amended to read:                            
	(g)  An institution not yet in operation when its application                 
for authorization to operate is filed may not begin operation until            
receipt of authorization.  An institution in operation when its                
application for authorization to operate is filed may continue                 
operation until its application is acted upon by the department            
[COMMISSIONß.  The department ªCOMMISSIONß may issue                       
provisional authorization to operate, containing limitations as to time,       
procedures, functions, or other conditions as the department               
[COMMISSIONß considers necessary.                                              
   * Sec. 60.  AS14.48.080(a) is amended to read:                            
	(a)  A person desiring to solicit or perform the services of                  
an agent ª,ß in this state ª,ß shall apply to the department               
[COMMISSIONß upon forms provided by the  department                        
[COMMISSIONß.  The application must ªSHALLß be accompanied                 
by evidence of the good  reputation  and  character  of the applicant          

1996-04-23                     Senate Journal                      Page 3468
SB 301                                                                       
and must state the institution that the applicant intends to represent.        
An agent representing more than one institution must obtain a                  
separate agent's permit for each institution represented.  However,            
when an agent represents institutions having a common ownership,               
only one agent's permit is required.  If an institution that the               
applicant intends to represent does not have authorization to operate          
in this state, the application must ªSHALLß be accompanied by the          
information required of institutions making application for                    
authorization.  The application for an agent's permit must ªSHALLß         
also be accompanied by evidence of a surety bond or other deposit              
as required by AS14.48.100, and by payment of the required fees.               
   * Sec. 61.  AS14.48.080(c) is amended to read:                            
	(c)  Following review of the application and any further                      
information submitted by the applicant, and investigation of the               
applicant as the department ªCOMMISSIONß considers necessary,              
the department ªCOMMISSIONß shall either grant or deny an                  
agent's permit to the applicant.                                               
   * Sec. 62.  AS14.48.080(d) is amended to read:                            
	(d)  The agent's permit must be in a form approved by the                     
department ªCOMMISSIONß and must include                                   
		(1)  the date of issuance, effective date, and term;                         
		(2)  the correct name and address of the agent;                              
		(3)  the institution or institutions that the agent is                       
authorized to represent.                                                       
   * Sec. 63.  AS14.48.080(f) is amended to read:                            
	(f)  At least 60 days before the expiration of an agent's                     
permit, the agent shall complete and file with the department              
[COMMISSIONß an application form for renewal.  The renewal                     
application shall be reviewed and acted upon as provided for an                
original application.                                                          
   * Sec. 64.  AS14.48.090 is repealed and reenacted to read:                
	Sec. 14.48.090.  FEES.  The department shall adopt                            
regulations that establish the amount and manner of payment of fees            
for applications, authorizations, permits, and renewals under this             
chapter.                                                                       
   * Sec. 65.  AS14.48.100 is amended to read:                               
	Sec. 14.48.100.  BONDS.  (a)  At the time application is                      
made for authorization to operate, or for renewal of an authorization          
to operate, the department ªCOMMISSIONß may require the                
postsecondary  educational  institution  to  file  a surety bond in the        
                                                                               

1996-04-23                     Senate Journal                      Page 3469
SB 301                                                                       
amount determined by the department ªCOMMISSIONß.  The                     
amount shall be determined by the number of students the institution           
seeks to enroll.  The amount of the surety bond shall be reexamined            
by the department ªCOMMISSIONß upon each renewal of the                    
authorization to operate to determine if a larger or smaller bond              
would be appropriate to ensure adequate protection for the students            
or enrollees, ªORß their parents or guardians, or classes thereof.  The        
bond shall be executed by the applicant as principal and by a surety           
company qualified and authorized to do business in this state.  The          
bond ªANDß shall be conditioned to provide indemnification to any            
student or enrollee, ªORß the student's or enrollee's parent or                
guardian, or class thereof ª,ß determined to have suffered loss or             
damage as a result of a postsecondary educational institution's            
[ANß act or practice that ªWHICHß is a violation of this chapter           
[BY THE POSTSECONDARY EDUCATIONAL INSTITUTIONß and                             
that the bonding company shall pay a final nonappealable order of              
the department ªCOMMISSIONß or judgment of a court of this state           
having jurisdiction, upon receipt of written notification of the order         
or judgment.  The aggregate liability of the surety for the bond of            
the institution or agent involved in the order or judgment may not,            
in any event, exceed the amount of the bond.                                   
	(b)  An application for an agent's permit must ªSHALLß be                 
accompanied by a surety bond in the amount determined by the                   
department ªCOMMISSIONß to be necessary for the protection of              
the students or enrollees, ªORß their parents or guardians, or classes         
of these, or to reflect an institution's volume of business in the state.      
The bond shall be executed by the applicant as principal and by a              
surety company qualified and authorized to do business in this state.          
The bond shall be conditioned to provide indemnification to any                
student or enrollee, ªORß the student's or enrollee's parents or           
guardian, or class of these, determined to have suffered loss or               
damage as a result of an agent's act or practice that ªWHICHß is a     
violation of this chapter ªBY THE AGENTß.                                      
	(c)  The surety bond to be filed under this section must                  
[SHALLß cover the period of the authorization to operate or the                
agent's permit, as appropriate, except when a surety is released as            
provided in this subsection.  A surety on a bond filed under this              
section may be released from that bond after the surety serves                 
written notice of the release to the department ªCOMMISSIONß and           
to  the  bonded  agent  or  institution  45  days  before the  release.        
                                                                               

1996-04-23                     Senate Journal                      Page 3470
SB 301                                                                       
However, the release does not discharge or otherwise affect a claim            
filed by a student or enrollee, ªORß a parent or guardian, or class            
thereof, before or after the release for loss or damage resulting from         
an act or practice that ªWHICHß is a violation of this chapter             
alleged to have occurred while the bond was in effect or for an                
institution's ceasing operations during the term for which tuition has         
been paid while the bond was in force.                                         
	(d)  Authorization for an institution to operate and an agent's               
permit shall be suspended by operation of law when the institution             
or agent is no longer covered by a surety bond as required by this             
section.  However, the department ªCOMMISSIONß shall give the              
institution or agent, or both, at least 30 days written notice before          
the release of the surety, ªTO THE EFFECTß that the authorization              
or permit shall be suspended by operation of law until another surety          
bond is filed in the same manner as, and in a like amount to, the              
bond being terminated.                                                         
	(e)  In lieu of the surety bond required in (a) and (b) of this               
section, the applicant may file with the department ªCOMMISSIONß           
a cash deposit or other negotiable security, acceptable to the                 
department ªCOMMISSIONß, in the amount specified for bonds.                
   * Sec. 66.  AS14.48.110 is amended to read:                               
	Sec. 14.48.110.  DENIAL.  If the department                               
[COMMISSIONß, upon review of an application for authorization to               
operate ª,ß or an application for an agent's permit, determines that       
the application should be denied, the department ªCOMMISSIONß              
shall notify the applicant, setting out the reasons in writing.                
AS44.62 (Administrative Procedure Act) governs the review of a                 
denial under this section.                                                     
   * Sec. 67.  AS14.48.120 is amended to read:                               
	Sec. 14.48.120.  REVOCATION.  (a)  An authorization to                        
operate or an agent's permit may be revoked or conditioned if the              
department ªCOMMISSIONß has reasonable cause to believe that               
the holder of the authorization or permit is violating or has violated         
this chapter, ªORß AS45.50.471, ªORß regulations adopted under this    
chapter, or AS45.50.491.  Except as provided in (b) of this section,       
AS44.62 (Administrative Procedure Act) governs the procedure for               
a revocation, review of a revocation, or other action under this               
section.                                                                       
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3471
SB 301                                                                       
	(b)  Authorization for an institution to operate, and a permit                
for an agent representing that institution, are revoked 30 days after          
the institution ceases to operate. The department ªCOMMISSIONß             
shall give the institution and the agent 15 days' written notice, by           
certified mail, sent return receipt requested, to the last addresses of        
the institution and agent.                                                     
	(c)  The institution and the agent may appeal a revocation                    
under (b) of this section by filing an appeal in writing with the              
department ªCOMMISSIONß within 30 days after the revocation."              
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 19, following line 12:                                                    
	Insert new bill sections to read:                                             
   "* Sec. 69.  AS14.48.130 is amended to read:                              
	Sec. 14.48.130.  COMPLAINTS.  (a)  A person claiming                          
damage or loss as a result of an act or practice by a postsecondary            
educational institution or its agent, or both, that ªWHICHß is a           
violation of this chapter or of the regulations adopted under this             
chapter may file with the department ªCOMMISSIONß a complaint              
against the institution or against its agent or both.  The complaint           
must state ªSHALL SET OUTß the alleged violation and must              
[SHALLß contain other information as may be required by the                    
department ªCOMMISSIONß.  A complaint may also be filed by the             
department ªCOMMISSIONß on its own motion or the attorney                  
general.  A complainant may file with the department                       
[COMMISSIONß as a representative of a class of complainants.                   
	(b)  The department ªCOMMISSIONß shall investigate the                    
complaint and may attempt to effect a settlement by persuasion and             
conciliation.  The department ªCOMMISSIONß may consider a                  
complaint after 30 days written notice by registered mail to the               
institution or agent, or both, giving notice of a time and place for           
hearing on the complaint.  The hearing shall be conducted in                   
accordance with AS44.62 (Administrative Procedure Act).                        
	(c)  If, upon the evidence at a hearing, the department                   
[COMMISSIONß finds that a postsecondary educational institution or             
its agent, or both, has engaged in, or is engaging in, an act or           
practice that ªWHICHß violates this chapter or the regulations             
adopted under this chapter, the department ªCOMMISSIONß shall          
serve  upon the institution or agent or both ª,ß an order requiring the        
                                                                               

1996-04-23                     Senate Journal                      Page 3472
SB 301                                                                       
institution or agent or both to cease and desist from the act or               
practice.  If the department ªCOMMISSIONß finds that the                   
complainant, or class of complainants, has suffered loss or damage             
as a result of the act or practice, the department ªCOMMISSIONß            
may also award the complainant, or class of complainants, full or              
partial restitution for the damage or loss and may impose the                  
penalties provided for in AS14.48.190.  The department                     
[COMMISSIONß may also, based on its own investigation and the                  
evidence adduced at the hearing, begin an action to revoke an                  
institutions authorization to operate or an agents permit.                     
    * Sec. 70.  AS14.48.140 is amended to read:                              
	Sec. 14.48.140.  JUDICIAL REVIEW.  A final                                    
administrative order issued by the department ªCOMMISSIONß is              
subject to judicial review under AS44.62 (Administrative Procedure             
Act).                                                                          
   * Sec. 71.  AS14.48.150 is amended to read:                               
	Sec. 14.48.150.  PRESERVATION OF RECORDS.  (a)  If                            
a postsecondary educational institution proposes to discontinue its            
operation, the chief administrative officer of the institution shall file      
with the department ªCOMMISSIONß the original or legible true              
copies of academic records of the institution as specified by the              
department ªCOMMISSIONß.  The records must include that                    
academic information customarily required by colleges when                     
considering students for transfer or advanced study and the academic           
record of each former student.                                                 
	(b)  If it appears to the department ªCOMMISSIONß that                    
records of an institution discontinuing its operations are in danger of        
being destroyed or otherwise made unavailable to the department            
[COMMISSIONß, the department ªCOMMISSIONß may seize the                    
records ª,ß under an order of the superior court.  The department          
[COMMISSIONß shall maintain a permanent file of records coming                 
into its possession under this section.                                        
   * Sec. 72.  AS14.48.180 is amended to read:                               
	Sec. 14.48.180.  ENFORCEMENT:  INJUNCTION.  (a)                               
The attorney general at the request of the department                      
[COMMISSIONß or on motion of the attorney general, may bring an                
action or proceeding in a court of competent jurisdiction for the              
enforcement of the provisions of this chapter.                                 
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3473
SB 301                                                                       
	(b)  When it appears to the department ªCOMMISSIONß                       
that a person is, is about to, or has violated a provision of this             
chapter or a regulation adopted under this chapter, the department         
[COMMISSIONß may, on its own motion or on the written                          
complaint of any person, file a petition for injunction in the name of         
the department ªCOMMISSIONß in a court of competent jurisdiction           
against the person for the purpose of enjoining the violation or for           
an order directing compliance with the provisions of this chapter.             
It is not necessary that the department ªCOMMISSIONß allege or             
prove that it has no adequate remedy at law.  The right of injunction          
provided in this section is in addition to other legal remedies                
available to the department ªCOMMISSIONß and is in addition to             
the right of criminal prosecution.  However, the department                
[COMMISSIONß may not obtain a temporary restraining order                      
without notice to the person affected.                                         
   * Sec. 73.  AS14.48.190 is amended to read:                               
	Sec. 14.48.190.  VIOLATIONS: CIVIL PENALTY.  A                                
person who violates the provisions of AS14.48.020, or who fails or             
refuses to deposit with the department ªCOMMISSIONERß the                  
records required by AS14.48.150, is subject to a civil penalty of not      
more than $1,000 for each violation.  Each days failure to comply              
with the provisions of AS14.48.020 and 14.48.150 constitutes a                 
separate violation.  The fine may be imposed by the department             
[COMMISSIONß in an administrative proceeding or by a court of                  
competent jurisdiction.                                                        
   * Sec. 74.  AS14.48.200 is amended to read:                               
	Sec. 14.48.200.  CRIMINAL VIOLATION.  A person who                            
wilfully violates the provisions of AS14.48.020 or who wilfully fails          
or refuses to deposit with the department ªCOMMISSIONß the                 
records required by AS14.48.150 is guilty of a misdemeanor and,                
upon conviction, is punishable by a fine of not more than $1,000 or            
by imprisonment for not more than six months, or by both.  Each                
days failure to comply is a separate violation.                                
   * Sec. 75.  AS14.48.210(2) is amended to read:                            
		(2)  "agents permit" means a nontransferable written                         
authorization issued to a natural person by the department that            
[COMMISSION WHICHß allows that person to solicit or enroll a                   
resident of the state for education in a postsecondary educational             
institution;                                                                   
                                                                               
                                                                               

1996-04-23                     Senate Journal                      Page 3474
SB 301                                                                       
   * Sec. 76.  AS14.48.210(3) is amended to read:                            
		(3) "authorization to operate" means approval of the                         
department ªCOMMISSIONß to operate or to contract to operate a             
postsecondary educational institution in the state;                            
   * Sec. 77.  AS16.43.340(a) is amended to read:                            
	(a)  In addition to entry permits and interim-use permits, the                
commission may issue educational entry permits to public, private,             
or denominational educational institutions, career, or vocational            
programs accredited or authorized by the Department of Education         
[OR ACCREDITED INSTITUTIONS, CAREER, OR VOCATIONAL                             
PROGRAMS APPROVED BY THE ALASKA COMMISSION ON                                  
POSTSECONDARY EDUCATIONß, or full-time nonprofit residential                   
child care facilities licensed by the Department of Health and Social          
Services, division of social services, if                                      
		(1)  the program is offered to students at the junior                        
high school level or above;                                                    
		(2)  the issuance of an educational entry permit is                          
reasonably necessary to the instruction of students under courses              
offered by the applicant for the educational entry permit;                     
		(3)  the program is offered by an institution that is                        
located in the state and has been in operation for at least two years;         
and                                                                            
		(4) the institution offering the program is not a                            
correspondence institution."                                                   
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 20, lines 4 and 5:                                                        
	Delete "Commission on Postsecondary Education                                 
(AS14.48.035) ª(AS14.42.015)ß"                                             
	Insert "Student Loan Corporation ªCOMMISSION ON                           
POSTSECONDARY EDUCATION (AS14.42.015)ß"                                        
                                                                               
Page 21, following line 5:                                                     
	Insert a new bill section to read:                                            
   "* Sec. 84.  AS44.62.330(43) is amended to read:                          
		(43)  Department of Education ªALASKA                                    
COMMISSION ON POSTSECONDARY EDUCATIONß under                                   
AS14.48 as to denial of applications and revocation of                         
authorizations and permits;"                                                   
                                                                               

1996-04-23                     Senate Journal                      Page 3475
SB 301                                                                       
Renumber the following bill sections accordingly.                              
                                                                               
Page 21, line 13:                                                              
	Delete "sec. 46"                                                              
	Insert "sec. 64"                                                              
                                                                               
Page 22, line 3:                                                               
	Delete "sec. 58"                                                              
	Insert "sec. 89"                                                              
                                                                               
Page 22, line 9:                                                               
	Delete "sec. 58"                                                              
	Insert "sec. 89"                                                              
                                                                               
Page 22, line 28:                                                              
	Delete "Section 56(c)"                                                        
	Insert "Section 87(c)"                                                        
                                                                               
Page 22, line 29:                                                              
	Delete "sec. 57"                                                              
	Insert "sec. 88"                                                              
                                                                               
Senator Salo moved for the adoption of Amendment No. 2.  Senator               
Green objected.                                                                
                                                                               
The question being: Shall Amendment No. 2 be adopted?  The roll                
was taken with the following result:                                           
                                                                               
CSSB 301(FIN) am                                                               
Second Reading                                                                 
Amendment No. 2                                                                
                                                                               
YEAS:  9   NAYS:  11   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, R.Phillips,             
Salo, Zharoff                                                                  
                                                                               
Nays:  Frank, Green, Halford, Kelly, Leman, Miller, Pearce, Rieger,            
Sharp, Taylor, Torgerson                                                       
                                                                               
and so, Amendment No. 2 failed.                                                
                                                                               

1996-04-23                     Senate Journal                      Page 3476
SB 301                                                                       
CS FOR SENATE BILL NO. 301(FIN) am was automatically in                        
third reading.                                                                 
                                                                               
The question being: Shall CS FOR SENATE BILL NO. 301(FIN)                      
am An Act relating to postsecondary education; and providing for               
an effective date pass the Senate?  The roll was taken with the                
following result:                                                              
                                                                               
CSSB 301(FIN) am                                                               
Third Reading - Final Passage                                                  
Effective Dates                                                                
                                                                               
YEAS:  16   NAYS:  4   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Donley, Frank, Green, Halford, Hoffman, Kelly, Leman,                   
Lincoln, Miller, Pearce, R.Phillips, Rieger, Salo, Sharp, Taylor,              
Torgerson                                                                      
                                                                               
Nays:  Adams, Duncan, Ellis, Zharoff                                           
                                                                               
and so, CS FOR SENATE BILL NO. 301(FIN) am passed the                          
Senate.                                                                        
                                                                               
Senator Halford moved and asked unanimous consent that the vote                
on the passage of the bill be considered the vote on the effective             
date clauses.  Without objection, it was so ordered.                           
                                                                               
Senator Salo gave notice of reconsideration.