Legislature(1993 - 1994)
03/18/1994 03:00 PM House HES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES
STANDING COMMITTEE
March 18, 1994
3:00 p.m.
MEMBERS PRESENT
Rep. Cynthia Toohey, Co-Chair
Rep. Con Bunde, Co-Chair
Rep. Gary Davis, Vice Chair
Rep. Al Vezey
Rep. Pete Kott (arrived at 3:40 p.m.)
MEMBERS ABSENT
Rep. Harley Olberg
Rep. Bettye Davis
Rep. Tom Brice
COMMITTEE CALENDAR
HB 488: "An act relating to the scholarship loan program;
and providing for an effective date."
HEARD AND HELD
*HB 291: "An act establishing a consumer protection intern
program at the University of Alaska."
PASSED OUT OF COMMITTEE
HB 422: "An act relating to custody and visitation
rights."
PASSED OUT OF COMMITTEE
(* First public hearing)
WITNESS REGISTER
PHYLLIS LARSON, Parent
8935 Trio
Juneau, Alaska 99801
Phone: (907) 789-2941
POSITION STATEMENT: Testified in opposition to HB 488.
DIANE BARRANS, Director
Student Financial Aid Programs
Alaska Commission on Postsecondary Education
3030 Vintage Boulevard
Juneau, Alaska 99801-7109
Phone: (907) 465-6740
POSITION STATEMENT: Answered questions on HB 488.
REPRESENTATIVE JERRY SANDERS
Alaska State Legislature
State Capitol
Juneau, Alaska 99801-1182
Phone: (907) 465-4945
POSITION STATEMENT: Provided Sponsor Statement for HB 291.
ALLISON ELGEE, Statewide Budget Director
University of Alaska
227 4th Street
Juneau, Alaska 99801
Phone: (907) 463-3086
POSITION STATEMENT: Answered questions on HB 291.
PREVIOUS ACTION
BILL: HB 488
SHORT TITLE: RESTRICT STUDENT LOANS TO ALASKA SCHOOLS
SPONSOR(S): REPRESENTATIVE(S) VEZEY
JRN-DATE JRN-PG ACTION
02/14/94 2379 (H) READ THE FIRST TIME/REFERRAL(S)
02/14/94 2379 (H) HES, STATE AFFAIRS
03/08/94 (H) MINUTE(HES)
03/17/94 (H) HES AT 03:00 PM CAPITOL 106
BILL: HB 291
SHORT TITLE: CONSUMER PROTECTION INTERN PROGRAM
SPONSOR(S): REPRESENTATIVE(S) SANDERS
JRN-DATE JRN-PG ACTION
04/22/93 1431 (H) READ THE FIRST TIME/REFERRAL(S)
04/22/93 1431 (H) HES, FINANCE
03/18/94 (H) HES AT 03:00 PM CAPITOL 106
BILL: HB 422
SHORT TITLE: CHILD CUSTODY AND VISITATION RIGHTS
SPONSOR(S): REPRESENTATIVE(S) BUNDE
JRN-DATE JRN-PG ACTION
01/31/94 2206 (H) READ THE FIRST TIME/REFERRAL(S)
01/31/94 2206 (H) HES, JUDICIARY, FINANCE
03/11/94 (H) HES AT 03:00 PM CAPITOL 106
03/11/94 (H) MINUTE(HES)
03/15/94 (H) HES AT 03:00 PM CAPITOL 106
03/15/94 (H) MINUTE(HES)
ACTION NARRATIVE
TAPE 94-56, SIDE A
Number 000
CHAIR TOOHEY called the meeting to order at 3:07 p.m., noted
members present and announced the meeting would begin with
HB 488.
HB 488 - RESTRICT STUDENT LOANS TO ALASKA SCHOOL
Number 008
REP. AL VEZEY, prime sponsor of HB 488, said the bill
provides that undergraduate students who elect to attend
school outside the state would not be eligible for a student
loan. He referred to the Alaska Commission on Postsecondary
Education (ACPE) 1992-93 annual report, Table 17 in the
appendices, and reported to date, the Alaska Student Loan
Program has loaned $369 million to students attending
schools in-state. During the same period of time it has
loaned $326 million to students attending out-of-state
schools. In the 1992-93 school year the student loan
program issued $29 million in loans to in-state students.
During the same period it issued nearly $19 million in loans
to students attending school out of state. Rep. Vezey said
Alaska could not build a better educational system if it
continued to subsidize the better students' attendance of
out-of-state programs, when those programs were available in
Alaska. He concluded, the reason for the bill is Alaska is
unnecessarily exporting money and brainpower and HB 488 is
in the best interests of the future, the economy, and the
quality of educational programs in Alaska.
Number 058
REP. CON BUNDE mentioned an observation made about the
Washington, Alaska, Montana and Idaho (WAMI) loan program is
that students develop contacts where they do their
postgraduate work and then remain living in those areas.
Number 078
PHYLLIS LARSON, concerned parent, testified against HB 488.
She said she has lived in Alaska for 25 years and various
members of her family have taken advantage of this program
including her husband, son and hopefully, her daughter. She
added the state loans have all been repaid. She described
her daughter's various extracurricular activities and
academic achievements and said neither her daughter or other
students should be penalized because they choose to go
outside the state for their education. She said she
believes this bill would be discriminatory against students
in their endeavors to receive the education they so desire
and to become the adults they wish to become.
REP. VEZEY added since 1992 the student loan program has not
been capitalized by the state, but has been self-sustaining
in that it issues bonds. In 1991, the student loan
corporation showed a loss of $31 million; in 1992, the loss
was $29 million; and in 1993, the loss was $25 million. He
indicated at some point the state would be asked to provide
additional capitalization to this fund and it would need to
be determined if appropriating money to schools in the lower
forty-eight would be desirable.
REP. BUNDE said Mr. Joe McCormick, ACPE's Executive Director
was at a quarterly meeting and would be unable to attend
today's committee meeting.
Number 134
DIANE BARRANS, Director of Student Financial Aid Programs,
ACPE, said the commission has not yet taken an official
position on HB 488. She said one concern was whether the
university system was prepared to absorb the students who
would then choose to attend school in Alaska.
CHAIR TOOHEY asked what was involved in increasing the
capacity of the University of Alaska, Fairbanks (UAF) and
University of Alaska, Anchorage (UAA) to handle the students
who are now getting loans.
MS. BARRANS said she did not know.
Number 153
CHAIR TOOHEY questioned the origin of the money put into
this fund and wondered if there were strings attached. She
stated personally, as a mother of three children and someone
who has made use of the fund, she is opposed to HB 488.
Number 167
REP. VEZEY pointed out the student loan program has been in
effect since 1971. He remarked on the program's growth and
said in 1971 it was a $1.3 million a year program, and did
not pass the $10 million a year mark until 1981; it is now
running in the range of $50-60 million a year.
Number 180
REP. BUNDE said given the degree to which the loans have
needed to be subsidized, support from the general fund might
not be forthcoming. As a member of the ACPE, he said there
is an effort by the commission to make the operation more
business-like so general fund support would not be required.
He referred to Ms. Barrans for further comment on the ACPE's
fiscal note.
MS. BARRANS said she has not worked on the fiscal note and
could consult with the finance officer and report back to
the committee.
Number 207
REP. BUNDE questioned the $18,000 increases in operating
expenses followed by a huge reduction in operating expenses
shown on the fiscal note.
Number 214
MS. BARRANS said fewer loans would be outgoing so there
would be a reduction in repayment as well. She said the
personal service increase refers to a review of graduate
applications to determine if a course of study outside the
state is available and similar to an in-state program.
Number 229
CHAIR TOOHEY asked what portion of out-of-state students
default on their loans in comparison to students that remain
in-state.
REP. VEZEY said Mr. McCormick of the ACPE would have easy
access to that information.
Number 239
REP. GARY DAVIS said even though he made personal use of the
loan program when he was in school, given today's economy,
Alaskans are forced to make some hard decisions. He pointed
out that other states may withhold scholarships and grants
to Alaskan students because other states and colleges know
that Alaskan students have this 5,000 plus dollar allotment
available to them. He concluded by saying, unfortunately
this is the type of legislation that Alaskans are forced to
look at if drastic measures are not taken elsewhere.
REP. VEZEY said the bill provides loans to graduate-level
work outside of Alaska if those programs are unavailable in
the state. He said the ACPE indicated there were more
problems collecting from Alaskan students attending schools
out-of-state as compared to Alaskan students attending
school in the state.
Number 310
MS. BARRANS clarified there is a greater ability to collect
from students who are actually in Alaska, partially because
of the ACPE's access to the permanent fund dividends.
Through extending contract work done with national credit
bureaus and collection agencies, the ACPE intends to extend
its outreach ability.
MS. BARRANS said, "Historically when bills of this nature
have been seen, we have been asked to get a bond counsel
opinion in terms of whether or not restricting our loans to
in-state borrowers only would have any impact on our ability
to bond for the funding. If it were to infringe upon our
ability to bond, then we would have to look again to the
general fund as a source of funds for new loans."
Number 330
CHAIR TOOHEY asked if Alaskan students did not attend out-
of-state schools, would they consequently be deprived of any
undergraduate studies.
REP. VEZEY said textile engineering, and possibly
architecture are programs of study unavailable in Alaska.
REP. G. DAVIS said most graduate schools, even medical
schools and law schools do not have a prescribed
undergraduate program, but it would benefit predental or
premedical students to attend such programs.
MS. BARRANS said the ACPE could provide this information by
doing a comparison study of programs offered by different
universities. She added there are no physical therapy or
occupational therapy programs available in Alaska.
REP. BUNDE said testimony from students is missing in this
discussion.
Number 370
CHAIR TOOHEY said there was not a quorum and HB 488 would be
held over. Chair Toohey said HB 291 would be the next order
of business.
HB 291 - CONSUMER PROTECTION INTERN PROGRAM
Number 394
REP. JERRY SANDERS, prime sponsor for HB 291, read the
following sponsor statement: "This bill provides for a
program for University of Alaska students to work with the
fair business practices section of the Department of Law.
The program will provide university credit and invaluable
experience for the students plus a stipend. The student
interns will be involved with the fair business practices
section of the Department of Law.
"In recent years, the fair business practices section of the
Department of Law has been cut from 13 to 3 people. The
student interns will be able to assist in developing cases
and providing needed follow-up on other cases and in return
will receive valuable experience in the world of business
and business law. This program will also provide hands-on
experience in business ethics for the students.
"Alaskans are being ripped off nightly by unscrupulous
telemarketers primarily based in the lower forty eight.
Victims, especially in the remote bush areas of the state
have little practicable recourse. Alaska has a
telemarketing law that makes the crime a felony with the
possibility of extradition of offenders and serious fines.
Currently, telemarketing enterprises who violate the law are
merely sent a copy of the law and regulations.
"Without the availability of additional staff, vulnerable
members of our constituency will not be protected, because
laws do not enforce themselves."
REP. SANDERS referred to the two committee substitute
changes: 1) On page 1, line 8, delete "must" and add "may"
and 2) on page 1, line 11, delete "may not participate for
more than one semester." He explained attending more than
one semester would allow the student more time for
experience and learning.
REP. BUNDE moved to adopt the committee substitute for HB
291.
(Chair Toohey then turned the gavel over to Rep. Bunde to
preside over the remainder of the meeting. Chair Bunde
indicated for the record that Rep. Kott arrived at 3:40
p.m.)
CHAIR BUNDE asked if students were interested in
participating in this internship.
REP. SANDERS responded it was his understanding that
students had expressed interest in the program.
Number 486
ALLISON ELGEE, Statewide Budget Director, University of
Alaska, said the university system supports this type of
internship programs. She said there are cooperative
agreements with several agencies regarding different intern
programs. She stated there is currently no agreement with
the Department of Law's consumer protection program because
their staffing level is not adequate to provide for
supervision. She said interns are required to be supervised
by an attorney, although the attorney need not be present on
a full-time basis. She said legislation is not necessary to
establish the intern program; the problem lies with
staffing at the Department of Law. She concluded by saying
internships presently do not involve stipends.
CHAIR BUNDE asked if not having a stipend would be
detrimental in getting students involved in the program.
MS. ELGEE said if only one internship paid a stipend and the
other programs did not, this could be a problem.
REP. G. DAVIS said this is the third intern program he is
aware of and wondered if the universities are moving in the
direction of developing more internship programs.
MS. ELGEE said she did not know but could find out.
Number 553
REP. G. DAVIS asked if it was possible to hold the program
during the summer months.
MS. ELGEE said she did not know if the paralegal program was
offered during the summer, but she could find this out as
well.
Number 568
CHAIR BUNDE recommended passage of the committee substitute
without the fiscal note, so this internship would be on the
same footing as other intern programs.
Number 576
REP. TOOHEY wondered if it was legal to include the fiscal
note.
Number 583
CHAIR BUNDE said he thought it was legal but it would set a
precedent.
Number 588
MS. ELGEE referred to page 1, line 11, "and shall receive a
stipend" and said the fiscal note reflects the language in
the legislation, so the legislation itself would need to be
modified.
Number 590
REP. TOOHEY asked if it was wise to put an amount in the
bill, and asked if the word "stipend" could be used instead
of a specific amount.
Number 597
CHAIR BUNDE mentioned the other programs do not receive any
stipend and it might be wiser to strike that last sentence.
Number 600
REP. KOTT asked if legislative interns receive a stipend.
MS. ELGEE answered in the affirmative. She added that none
of the other paralegal programs receive stipends.
Number 611
REP. KOTT said the reason for the stipend is to defray costs
in coming to Juneau, and asked if travel would be involved
in this program.
CHAIR BUNDE said he thought the program would take place
locally.
REP. TOOHEY asked what the stipend amount was for the
legislative intern program. After some discussion she was
informed the stipend was $3,000 to $3,500 per person per
session.
Number 622
CHAIR BUNDE asked for the pleasure of the committee.
Number 632
REP. G. DAVIS moved to pass committee substitute for HB 291
to the Finance Committee with individual recommendations
with the accompanying fiscal note.
Number 636
CHAIR BUNDE stated he would object, and called on Rep.
Vezey.
Number 637
REP. VEZEY said other intern programs are funded through the
university system and do not get special appropriations.
TAPE 94-56, SIDE B
Number 042
REP. VEZEY continued by saying he had nothing against the
consumer protection intern program, but thought it could be
implemented with the regulations that are currently on the
books.
Number 045
CHAIR BUNDE said this bill expresses legislative intent to
see the program realized and possibly the funding as well.
CHAIR BUNDE stated there was a motion before the committee
and before calling the roll he asked Rep. Sanders for a
wrap-up.
REP. SANDERS said he had no problem deleting the last
sentence referring to the $1,000.
REP. G. DAVIS withdrew his motion to allow for amendments if
so desired.
Number 065
CHAIR BUNDE asked for the pleasure of the committee.
Number 067
REP. TOOHEY pointed out the Department of Law would be
delighted to implement an internship program and she
wondered what would prevent this if the $1,000 stipend was
removed.
Number 073
REP. VEZEY made a motion to amend the committee substitute
by striking the last sentence.
CHAIR BUNDE hearing no objection to the amendment, adopted
the amendment, striking the sentence that referred to the
stipend.
Number 081
REP. VEZEY moved to adopt a zero fiscal note for HB 291.
Number 082
CHAIR BUNDE hearing no objection, adopted a zero HESS
Committee fiscal note. Chair Bunde asked for the pleasure
of the committee.
Number 086
REP. VEZEY moved to pass committee substitute for HB 291 as
amended from the HESS committee with individual
recommendations.
Number 089
CHAIR BUNDE asked that a roll call be taken.
Representatives Bunde, G. Davis, Vezey, and Kott voted yea
and Representative Toohey voted nay. Chair Bunde declared
that HB 291 passed out of committee with the accompanying
fiscal note.
Number 096
CHAIR BUNDE brought HB 422 to the table and stated that
since there had already been considerable discussion on this
bill, he would like to wrap it up and call for a vote.
HB 422 - CHILD CUSTODY AND VISITATION RIGHTS
Number 102
REP. TOOHEY objected to the bill, saying it was poor
legislation that addressed proceedings that should be
addressed in court, and passage of the bill would not be in
the best interests of the child.
Number 119
CHAIR BUNDE clarified that the discussion was in reference
to the latest committee substitute which had not yet been
adopted. He stated his support of adopting the committee
substitute.
Number 120
REP. KOTT moved to adopt the committee substitute for HB
422, dated March 16, 1994.
CHAIR BUNDE hearing no objection said the committee
substitute for HB 422 was before the committee.
Number 130
REP. VEZEY moved to pass the committee substitute for HB 422
(HESS) from the HESS committee with individual
recommendations.
CHAIR BUNDE asked that a roll call be taken.
Representatives G. Davis, Vezey, Kott and Bunde voted yea,
and Representative Toohey voted nay. Chair Bunde declared
that HB 422 was so moved.
CHAIR BUNDE responded to Rep. Vezey's question about taking
action on HB 488 and said he wanted to hear testimony from
student witnesses.
Seeing no further business before the committee CHAIR BUNDE
ADJOURNED the meeting at 3:55 p.m.
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