Legislature(2009 - 2010)CAPITOL 106
03/02/2009 08:00 AM House EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| HB147 | |
| HB58 | |
| HB147 | |
| HB126 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 147 | TELECONFERENCED | |
| *+ | HB 58 | TELECONFERENCED | |
| += | HB 126 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 58-EDUC LOAN REPAYMENT PROGRAM 9:01:26 AM CHAIR SEATON announced that the next order of business would be HOUSE BILL NO. 58, "An Act relating to a student loan repayment program for specified occupations or fields in which a shortage of qualified employees exists." 9:02:07 AM REPRESENTATIVE BILL THOMAS, Alaska State Legislature, presented the CS for HB 58, to the committee. 9:02:23 AM REPRESENTATIVE MUNOZ moved to adopt CSHB 58, 26-LS0307\P, Mischel, 2/25/09. CHAIR SEATON objected for discussion. 9:02:45 AM REPRESENTATIVE THOMAS introduced the proposed CS changes, paraphrasing from a prepared statement , which read as follows [original punctuation provided]: Section 1: Findings and Purpose: remains the same. Establishes that the purpose of the bill is to provide financial incentives to students who return to Alaska to work. Section 2: Remains the same. Allows Alaska Student Loan Commission to perform duties assigned by the Alaska qualified employee recruitment loan repayment program. (Technical conforming language.) Section 3: Remains the same. Allows the Executive Director of the Alaska Student Loan Commission to administer the Alaska qualified recruitment loan repayment program. (Technical conforming language.) Section 4: Remains the same. Allows unrestricted capital monies made available to Alaska Student Loan Corporation to be appropriated to the loan repayment program. Section 5: Changed Eligibility Criteria HB 58 [reads] - In order to be eligible for the program the student must: 1.) Be a resident of the state when applying 2.) Be employed in a specified field: a. Biologist b. Education c. Dentist d. Nursing Changed in CS - In order to be eligible for the program the student must: 1.) Be a resident at the time of applying for the program 2.) Is working full time in a field determined by the Department of Labor to be in a shortage in the state. 3.) Applicant began working in the designated field in Alaska within four years of attaining his/her degree 4.) Student received a loan from the Alaska Student Loan Corporation Changed Conditions and Limitations on Loan Repayment Clarified that the loan repayment will only be for the outstanding loan amount at the time of the application to the program. Therefore if a student elects to pay some of the loan on their own, the state will not be reimbursing them for payments already made. 9:04:05 AM REPRESENTATIVE MUNOZ asked for clarity on how qualification for the program works, and what will occur if the critical workforce areas change in the four years that a student is Outside attaining their degree. KACI SCHROEDER, Staff, to Representative Bill Thomas, Alaska State Legislature, responded that reimbursement occurs when the student returns to the state and takes up employment. Further, she said that the Department of Labor & Workforce Development (DLWD) does not anticipate changes to occur rapidly in deficit employment areas. 9:05:32 AM REPRESENTATIVE KELLER inquired whether the CS affects the fiscal note. MS. SCHROEDER said the available fiscal note does not reflect the CS. CHAIR SEATON interjected that a fiscal note will be tailored for the CS, if it is adopted. 9:06:17 AM CHAIR SEATON removed his objection and CSHB 58, Version P, was before the committee. 9:06:40 AM REPRESENTATIVE THOMAS explained how the reported lack of professional biologists and nursing field employees has been the impetus for this bill. He identified the problem as being an exodus of students, attending universities Outside, and not returning to Alaska to fulfill their careers. The loan forgiveness incentive applies to working in rural and urban Alaska, and requires the employee to make a work commitment of four to six years. Further, he pointed out that the gas pipeline will require a large workforce, and college training should be encouraged for this effort. A repayment program incentive has been in existence, however, he opined, it is in need of revitalization. Although the fiscal note is high, the need for this program is high, also. 9:12:10 AM REPRESENTATIVE MUNOZ referred to Sec. 4, and asked about the dividend repayment to the Alaska Student Loan Corporation (ASLC). MS. SCHROEDER explained that current statute allows ASLC to pay any excess money to the state, and the new language allows the money to be made available to the proposed program. REPRESENTATIVE MUNOZ asked for clarity on the funding source for the program. MS. SCHROEDER answered that it will be capitalized and consist of appropriations made by the legislature. REPRESENTATIVE MUNOZ queried what the recommended amount is for the capitalization. MS. SCHROEDER indicated that, without a CS fiscal note to refer to, she would defer to EED for an answer. CHAIR SEATON clarified that this capitalization is from the general fund. 9:14:17 AM REPRESENTATIVE KELLER asked if this program applies to Alaska residents only, and whether any loan repayments would be made outside of the state. MS. SCHROEDER directed attention to page 3, lines 25-28, to respond to the residency question. She paraphrased the bill language, which reads: "... the applicant is a resident of the state at the time of submitting the application and during the loan repayment period;" and Page 4 language establishes that the recipient is required to be a resident during the repayment period. However, she pointed out, the proposed amendment removes the residency requirement. If residency is required prior to the assistance being available, it creates an unintended penalty phase where a student returning to the state cannot benefit until residency is once again established. 9:16:06 AM CHAIR SEATON referred to page 3, line 6, to read: "repayment of education loans from the corporation under the program ...", and pointed out that any loans being paid back must have originated with ASLC and excludes loans from other states, agencies, or private funding. MS. SCHROEDER said, "Correct." 9:17:09 AM CHAIR SEATON directed attention to the CS and asked for justification on the changes of the eligibility criteria. MS. SCHROEDER indicted that the eligibility criteria begins on page 3. The recipient is required to be a resident but is allowed a four year grace period to begin work in their chosen field. The intent is to ensure that the student does not remain ten years out of state before deciding to return to Alaska. The four year period will serve as an allowance time to attain any required license to practice. Further, the recipient must remain employed in Alaska, the loan must have originated with the ASLC, and it is the purview of DLWD to determine the workforce shortages that are covered. The conditions and limitations on the payback schedule have also been clarified in the CS to indicate that any payments a student may have previously made on the loan, will not be reimbursable. 9:19:27 AM CHAIR SEATON asked about the repayment rates for rural versus urban work. MS. SCHROEDER described the repayment for rural work as four years, or 25 percent, and six years, or 16.67 percent per year in urban areas. To a follow up question from Chair Seaton, she explained that the basis for the difference is to attract professionals to rural areas, where there is a deficiency; loan repayment is expected to be an attractive incentive. Further, the expectation is that a professional, such as a teacher, having become established over a four year period, may choose to stay. 9:21:34 AM REPRESENTATIVE BUCH referred to page 4, line 11, and commented on the vagueness of the language authorizing DLWD to specify occupational shortages. He asked what means will be used to identify applicants for this program. MS. SCHROEDER said that DLWD tracks the employment trends across the state, publishing an informative analysis every two years, as well as providing a monthly magazine "Economic Trends." REPRESENTATIVE BUCH maintained that [subsection (b)] seems vague, despite the other specifics requirements contained in the bill. 9:23:32 AM HANNAH HARRISON, Staff, to Representative Paul Seaton, Alaska State Legislature, offered that the bill originally addressed specific occupations. However, during the drafting of the bill it was decided that DLWD would be the fundamental source for identifying which occupations indicate a 15 percent or higher vacancy, or are otherwise experiencing a shortage. REPRESENTATIVE BUCH upheld the need to have clarity imbedded in the bill; additional criteria, and identified jobs. 9:26:09 AM CHAIR SEATON made a request that DLWD provide the committee a list of the university majors that apply to this aspect of the bill. Further, he conjectured that a student could take a loan under this program, attend a four year university, and return to Alaska to find that their major is no longer considered a deficient category. Given the scenario of a job dropping off the list, how will reimbursement be handled, he asked. MS. SCHROEDER answered that once an applicant is accepted into the program, the reimbursement will be made, whether or not the degree they hold has dropped off of the DLWD list. CHAIR SEATON underscored that statute must be clear, regarding these qualifications. 9:28:07 AM REPRESENTATIVE MUNOZ agreed with the need for clarity, and also suggested that flexibility is important to reflect the changing needs of the state. MS. SCHROEDER explained that the entire list would be expansive, and was intentionally omitted so as to avoid a Christmas tree bill. 9:29:16 AM REPRESENTATIVE KELLER asked for a description of the process used to qualify a job and specify it as eligible for the program. MS. SCHROEDER indicated that it is a complex process and deferred to DLWD. 9:30:27 AM DIANNE BARRANS, Executive Director, Alaska Commission on Postsecondary Education, said it is important to have a clear intent in a bill, so as to not put an agency in a compromising position. Unless full funding is received, administrative decisions will need to be made regarding which occupations will receive benefits and the state regions that require focused effort. An example is the teaching profession. In some regions, such as Southcentral, the teaching profession would not be identified as experiencing a shortage, but in other regions this is a high priority deficit occupation. She suggested that the bill language allow the commission to impose certain principles related to public interest emphasis or emergency workforce decisions. This would also facilitate regulation drafting and program implementation. 9:32:22 AM CHAIR SEATON requested that Ms. Barrans work with the sponsor on improving the bill language, and she agreed. 9:32:48 AM BRYNN KEITH, Research Chief, Division of Administrative Services, Department of Labor & Workforce Development (DLWD), said, "Regrettably, the [DLWD] doesn't have a handy list of shortage occupations." Assessing a shortage requires many considerations, but it is basically a supply and demand situation. The department has an abundance of information regarding the demand for specific workforce positions, however, the knowledge of how many skilled workers are available, and residing in Alaska is elusive. Thus, establishing the shortage figure is difficult. Proxy measures are utilized, one being to chart, by occupation, the percentage of non-residents employed. Although there are many reasons that an employer hires a non- resident, the policy assumption is that the hire was made based on the lack of available local talent. The non-resident report is produced annually, as well as a projection for future demand by occupation. Every two years, the department releases a forecast of future occupational demands. The 2009 forecast projects through 2016, she said, and expressed confidence in the report as a potential shortage indicator. Shortages occur due to growth/expansion in a particular field, as well as the retirement factor, and the data reflects these variables, she said. A definitive answer does not exist, however, these measures are helpful. 9:35:22 AM CHAIR SEATON requested that Ms. Keith join the afore mentioned work group, including the bill sponsor, to identify fields of study that this bill could incorporate, and mechanisms that could be employed to ascertain appropriate loan reimbursements. 9:36:40 AM REPRESENTATIVE KELLER confirmed that DLWD identifies potential shortage areas but does not prioritize vocations. MS. KEITH stated that the research and analysis section does not prioritize occupations, it produces data on which policy decisions can be made. The Alaska Workforce Investment Board does prioritize occupations for various reasons; largely to funnel training dollars. 9:37:29 AM CHAIR SEATON stated that the bill would be held. 9:37:53 AM
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 126 amendment.pdf |
HEDC 3/2/2009 8:00:00 AM |
HB 126 |
| HB 126 amendment II.pdf |
HEDC 3/2/2009 8:00:00 AM |
HB 126 |
| hb 126 materials.pdf |
HEDC 2/25/2009 8:00:00 AM HEDC 3/2/2009 8:00:00 AM HEDC 3/9/2009 8:00:00 AM |
HB 126 |
| workdraft HB 126.pdf |
HEDC 2/25/2009 8:00:00 AM HEDC 3/2/2009 8:00:00 AM HEDC 3/9/2009 8:00:00 AM |
HB 126 |
| HB 147 material.pdf |
HEDC 3/2/2009 8:00:00 AM |
HB 147 |
| HB 58 material.pdf |
HEDC 3/2/2009 8:00:00 AM |
HB 58 |
| new HB 126 material including new fiscal notes.pdf |
HEDC 3/2/2009 8:00:00 AM |
HB 126 |
| HB 58 fiscal note.pdf |
HEDC 3/2/2009 8:00:00 AM |
HB 58 |
| HB 58 amendment.pdf |
HEDC 3/2/2009 8:00:00 AM |
HB 58 |