03/24/1994 03:00 PM House L&C

  HB 506 - STUDENT LOAN PROGRAM                                                
                                                                               
  Number 398                                                                   
                                                                               
  REP. CON BUNDE, Co-Chair of the House HESS Committee,                        
  sponsor of HB 506, explained to the committee that there was                 
  a letter in their packet that addresses a loophole in the                    
  bill regarding people who are enrolled but not attending                     
  classes.  The letter suggests an amendment that would change                 
  the bill to incorporate this technical amendment.                            
                                                                               
  Number 429                                                                   
                                                                               
  REP. PORTER asked what the difference was between being                      
  admitted to school or enrolled in school.                                    
                                                                               
  REP. BUNDE responded that you could be admitted to a program                 
  but not necessarily be enrolled that semester.                               
                                                                               
  Number 447                                                                   
                                                                               
  MR. JOE McCORMICK, Executive Director, Postsecondary                         
  Education Commission, Department of Education, explained                     
  that an amendment would address the misinterpretation that                   
  some students have that they can't apply for the loan until                  
  after they are actually attending classes.                                   
                                                                               
  Number 465                                                                   
                                                                               
  The committee discussed the language of the amendment in an                  
  effort to clarify the intent of the amendment, which was                     
  that an applicant does not have to be enrolled in a program                  
  to apply for a loan.                                                         
                                                                               
  Number 520                                                                   
                                                                               
  REP. BUNDE stated that the program has been working without                  
  this amendment and he felt the amendment may cause more                      
  problems than it fixes.  He withdrew the amendment from                      
  consideration.                                                               
                                                                               
  Number 560                                                                   
                                                                               
  REP. PORTER stated that he would still support the concept                   
  of the student loan program comparing its listing of                         
  defaultees against the Department of Administration's list                   
  of vendors on contract with the state.                                       
                                                                               
  Number 570                                                                   
                                                                               
  CHAIRMAN HUDSON explained that he spoke with Commissioner                    
  Usera and she had decided to take the amendment referenced                   
  above to the Finance Committee for their consideration.                      
                                                                               
  Number 580                                                                   
                                                                               
  REP. GREEN and REP. MULDER told the committee that the                       
  commissioner wanted to have the language in statute that                     
  would add language to the bid package sent to potential                      
  vendors that they need not apply if they are in default to                   
  the state on any loan.                                                       
                                                                               
  Number 590                                                                   
                                                                               
  CHAIRMAN HUDSON told the committee he would like to send the                 
  bill on without the amendment and abide by the wishes of the                 
  commissioner, unless someone on the committee had an                         
  amendment they wished to present now.                                        
                                                                               
  Number 595                                                                   
                                                                               
  REP. PORTER moved an amendment to the bill to delete                         
  subsection (c), page 5, lines 22, 23 and 24.                                 
                                                                               
  Number 600                                                                   
                                                                               
  REP. BUNDE told the committee that the student loan program                  
  would probably not survive if the program had to keep coming                 
  back to the legislature for appropriations from the general                  
  fund.                                                                        
                                                                               
  Number 607                                                                   
                                                                               
  MR. McCORMICK explained that the reason they put subsection                  
  (c) in HB 506 was to assure priority over other loans.                       
                                                                               
  Number 630                                                                   
                                                                               
  REP. SITTON stated that from a practical standpoint this                     
  would be impossible to implement.                                            
                                                                               
  Number 640                                                                   
                                                                               
  REP. PORTER believed there were other programs that could                    
  make a good case for top priority for garnishment.  He added                 
  that the one program he was thinking of was the victim                       
  compensation board.                                                          
                                                                               
  TAPE 94-29, SIDE A                                                           
  Number 001                                                                   
                                                                               
  MR. McCORMICK stated he was very willing to compromise on                    
  this issue and reiterated how important he felt it was for                   
  this legislation to pass this session.                                       
                                                                               
  Number 014                                                                   
                                                                               
  CHAIRMAN HUDSON stated that he was sympathetic to the idea                   
  of a person losing their permanent fund dividend it they                     
  were delinquent in their student loan.  He added that he                     
  felt that giving priority of the student loan program over                   
  some of the other programs was not good public policy.  The                  
  chair stated he supported the amendment.                                     
                                                                               
  CHAIRMAN HUDSON asked if there were any objections to Rep.                   
  Porter's previously offered amendment.  No objections were                   
  heard; it was so ordered.                                                    
                                                                               
  Number 049                                                                   
                                                                               
  MS. PAIGE ADAMS, Student Representative, University of                       
  Alaska, Sitka, testified via teleconference in support of HB
.  She stated she didn't have anything else to add.                       
                                                                               
  Number 070                                                                   
                                                                               
  REP. GREEN moved CSHB 506 with individual recommendations                    
  and accompanying fiscal notes.  No objections were heard; it                 
  was so ordered.