03/11/2009 08:00 AM House EDUCATION

HB 172-STATE INVESTMENT IN EDUCATION FUND                                                                                     
                                                                                                                                
8:09:29 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the next order of  business would be                                                               
HOUSE BILL  NO. 172,  "An Act  relating to  an investment  in the                                                               
education loan  fund; relating to authority  for the commissioner                                                               
of revenue to enter into a  bond purchase agreement and letter of                                                               
credit with  the Alaska Student  Loan Corporation;  and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
CHAIR SEATON  noted that HB 172  is a companion to  HB 109, which                                                               
the committee  has already reported  out of the committee.   This                                                               
legislation is  a interim measure  to allow for student  loans to                                                               
be made  this year,  and he  characterized it  as temporary.   He                                                               
requested  that the  committee waive  HB 172  from committee  and                                                               
asked if any member held objection.                                                                                             
                                                                                                                                
8:10:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  inquired  as   to  the  strategy  behind                                                               
waiving HB 172 from committee.                                                                                                  
                                                                                                                                
CHAIR  SEATON  explained that  HB  172  allows  for funds,  on  a                                                               
temporary basis,  to be borrowed from  the state for loans.   The                                                               
companion bill,  HB 109,  addresses the  long-term program  as it                                                               
changes the credit rating in order  to sell bonds.  The long-term                                                               
process addressed  by HB  109 is one  in which  loan applications                                                               
wouldn't be  taken until the bonds  have been sold and  the money                                                               
has been received.                                                                                                              
                                                                                                                                
8:11:10 AM                                                                                                                    
                                                                                                                                
No objection  was stated  for waiving HB  172 from  committee; so                                                               
ordered.