Legislature(1999 - 2000)
03/02/2000 03:07 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 2, 2000
3:07 p.m.
MEMBERS PRESENT
Representative Fred Dyson, Chairman
Representative Jim Whitaker
Representative Joe Green
Representative Carl Morgan
Representative Tom Brice
Representative Allen Kemplen
Representative John Coghill
MEMBERS ABSENT
All member present
COMMITTEE CALENDAR
HOUSE BILL NO. 346
"An Act relating to services for persons with developmental
disabilities."
- MOVED CSHB 346(HES) OUT OF COMMITTEE
HOUSE BILL NO. 373
"An Act relating to return of contributed capital, or payment of
a dividend, to the state by the Alaska Student Loan Corporation;
and providing for an effective date."
- HEARD AND HELD
HOUSE BILL NO. 396
"An Act transferring the assets, liabilities, and
responsibilities of the Alaska Municipal Bond Bank Authority and
of the
Alaska Student Loan Corporation to the Alaska Housing Finance
Corporation; and relating to the Alaska Housing Finance
Corporation."
- BILL HEARING CANCELED
PREVIOUS ACTION
BILL: HB 346
SHORT TITLE: SERVICES FOR DISABLED PERSONS
Jrn-Date Jrn-Page Action
2/07/00 2118 (H) READ THE FIRST TIME - REFERRALS
2/07/00 2118 (H) HES, FIN
3/02/00 (H) HES AT 3:00 PM CAPITOL 106
BILL: HB 373
SHORT TITLE: STUDENT LOAN CORP PAYMENTS TO STATE
Jrn-Date Jrn-Page Action
2/16/00 2207 (H) READ THE FIRST TIME - REFERRALS
2/16/00 2207 (H) HES, FIN
2/16/00 2207 (H) ZERO FISCAL NOTE (DOE)
2/16/00 2207 (H) GOVERNOR'S TRANSMITTAL LETTER
2/16/00 2207 (H) REFERRED TO HES
3/02/00 (H) HES AT 3:00 PM CAPITOL 106
WITNESS REGISTER
REPRESENTATIVE REGGIE JOULE
Alaska State Legislature
Capitol Building, Room 405
Juneau, Alaska 99801
POSITION STATEMENT: Sponsor of HB 346.
CHRISTINE HESS, Staff for Representative Reggie Joule
Alaska State Legislature
Capitol Building, Room 405
Juneau, Alaska 99801
POSITION STATEMENT: Answered questions on HB 346.
BETH LAPE, Special Assistant
Office of the Commissioner
Department of Education & Early Development
801 West Tenth Street, Suite 200
Juneau, Alaska 99801
POSITION STATEMENT: Answered questions on HB 346.
CONNIE ANDERSON, Developmental Disabilities Program Administrator
Division of Mental Health & Developmental Disabilities
Department of Health & Social Services
PO Box 110620
Juneau, Alaska 99811
POSITION STATEMENT: Testified in support of HB 346.
LYNN HETTICK
PO Box 2554
Seward, ALASKA 99664
POSITION STATEMENT: Testified in support of HB 346.
ERNEST DUMMANN
6721 Stives Place
Anchorage, Alaska 99801
POSITION STATEMENT: Testified in support of HB 346.
SCOTT CALDER
PO Box 75011
Fairbanks, Alaska 99707
POSITION STATEMENT: Testified in support of HB 346.
MARLA ADAMS
PO Box 82619
Fairbanks, Alaska 99708
POSITION STATEMENT: Testified in support of HB 346.
KATHLEEN FITZGERALD, President
Key Coalition
4521 Southpark Bluff Drive
Anchorage, Alaska 99516
POSITION STATEMENT: Testified in support of HB 346.
DIANE BARRANS, Executive Director
Alaska Commission on Postsecondary Education
Department of Education & Early Development
3030 Vintage Boulevard
Juneau, Alaska 99801
POSITION STATEMENT: Answered questions on HB 346.
SHEILA KING, Finance Officer
Division of Finance
Alaska Commission on Postsecondary Education
Department of Education & Early Development
3030 Vintage Boulevard
Juneau, Alaska 99801
POSITION STATEMENT: Presented HB 346.
ACTION NARRATIVE
TAPE 00-26, SIDE A
Number 0001
CHAIRMAN FRED DYSON called the House Health, Education and Social
Services Standing Committee meeting to order at 3:07 p.m.
Members present at the call to order were Representatives Dyson,
Whitaker, Brice, Kemplen and Coghill. Representatives Green and
Morgan arrived as the meeting was in progress.
HB 346 - SERVICES FOR DISABLED PERSONS
Number 0065
CHAIRMAN DYSON announced the first order of business as House
Bill No. 346, "An Act relating to services for persons with
developmental disabilities."
Number 0079
REPRESENTATIVE REGGIE JOULE, Alaska State Legislature, sponsor,
came forward to present HB 346. He mentioned there is a proposed
committee substitute (CS) in the packets. The title was changed
to make it more accurately represent the purpose of the bill.
The second change deleted some language in Section 1(d)(3).
Number 0219
REPRESENTATIVE COGHILL made a motion to adopt the proposed CS for
HB 346, version 1-LS1347\H, Lauterbach, 3/1/99, as a work draft.
There being no objection, that proposed CS was before the
committee.
REPRESENTATIVE JOULE stated that HB 346 will provide a tool to
better internally manage the wait-list process, provide more
effective use of the wait list, and provide better information to
the public and to individuals with developmental disabilities.
More specifically, the bill establishes periodic reviews of the
wait list, along with an annual report to the legislature and
governor. The information provided in the annual report will be
useful to individuals with developmental disabilities and their
families, the administration, the legislature and a variety of
service agencies. The information can also be used by the
division for a variety of purposes, including evaluating the
existing system, evaluating the number of people and the length
of wait for services, and the type and effectiveness of available
services. Additionally, the bill requires the Division of Mental
Health & Development Disabilities (DMHDD) to establish written
procedures and consumer information that will be available to the
general public.
REPRESENTATIVE JOULE explained that this new information will
greatly aid the general public. It will help individuals with
developmental disabilities to understand the process and their
rights. As of December 1, 1999, there were 786 people on the
developmental disabilities wait list and 333 on the infant
learning program wait list; approximately 2,100 individuals are
being served. It has been a difficult process for those who have
had to wait for services, and this will help.
REPRESENTATIVE COGHILL referred to page 2, lines 18-19, paragraph
(6). He asked if the 90-day period starts when people get
service or when they are identified.
Number 0556
CHRISTINE HESS, Staff to Representative Reggie Joule, answered it
would be from the time that people came on the waiting list.
However, the first 90 days of reporting would be 90 days after
the bill became effective.
Number 0571
REPRESENTATIVE COGHILL referred to page 2, lines 11-12, and said
he believes that the word "feel" is subjective in reporting.
MS. HESS said that language probably got into the bill because
when looking at people's developmental disabilities, the
department asks for the input of the family and the person with
the developmental disability.
REPRESENTATIVE COGHILL suggested a friendly amendment, dropping
the words "they feel" on page 2, line 12.
REPRESENTATIVE JOULE said he didn't object to that.
Number 0672
REPRESENTATIVE COGHILL made a motion to adopt Amendment 1: page
2, line 12, strike "they feel are" and add "that may be".
CHAIRMAN DYSON asked if there was any objection.
REPRESENTATIVE BRICE objected. He asked for it to be a pending
amendment. He said he believes that the way services are
developed involves a tremendous amount of input from the family,
and "they feel are" might show more empowerment toward the
family. It is a technical thing, but he would like to hear from
the department.
CHAIRMAN DYSON suggested "they want".
REPRESENTATIVE COGHILL noted that it was already in there, at the
beginning of the sentence.
REPRESENTATIVE BRICE withdrew his objection.
Number 0761
CHAIRMAN DYSON announced that Amendment 1 was adopted.
CHAIRMAN DYSON referred to page 2, line 23. He asked if it would
be steering around a problem to say "finishing" instead of
"graduating."
BETH LAPE, Special Assistant, Office of the Commissioner,
Department of Education & Early Development, stated that
currently in statute students either receive a diploma or a
certificate of attendance after 2002.
CHAIRMAN DYSON asked Ms. Lape if she sees leaving "graduating" in
the bill as limiting, or is it okay.
MS. LAPE said she believes it will be limiting.
Number 0877
REPRESENTATIVE JOULE responded that while to some it may seem
limiting, some students with developmental disabilities will
graduate. On the other hand, if during the process another way
comes up so that all students with developmental disabilities are
getting not just a certificate of attendance but will be
graduating - maybe in a specified area, for example - that high
school diploma will mean something to them. He would like to see
the language remain as-is because it holds out that level of
achievement for those individuals.
MS. LAPE said if the EED decides to move away from the diploma,
there will need to be a statutory change. This concern could be
handled at the same time.
REPRESENTATIVE BRICE commented that this is an annual report
being talked about, not changing the high school graduation
requirements or anything else. The DHSS is just trying to find
out a specific number of students who might have an IEP
[individual education plan] and how they're doing on the test.
Nothing is being changed with the exit exam. It would show some
good data, keeping it the way it is.
Number 1054
MS. HESS stated that the purpose in drafting that section was to
get some hard-core data, to see if 70 percent of the special
education students are dropping out. If that is the case, then
the services need to be looked at to find out what's going on.
The purpose is to find out what is happening to the students with
developmental disabilities as they work through the system or if
they drop out, and to tie a lot of data from different
departments together to look at the success of the services being
provided.
CHAIRMAN DYSON referred to page 2, lines 25-26, about the
legislators receiving copies of the written policies, manuals and
procedures used by the department. He said he doesn't want to
receive all of that. If people want the information, they can
easily get it.
REPRESENTATIVE JOULE said he preferred that it stayed in there.
NUMBER 1144
REPRESENTATIVE BRICE suggested a middle ground where this
information could be available electronically.
CHAIRMAN DYSON said that is an excellent suggestion. He
suggested changing page 2, line 25, to say those items may be
available either written or electronically.
Number 1227
CHAIRMAN DYSON offered a conceptual amendment, page 2, line 25,
which adds the phrase "and make available in written and
electronic form" before the words "policies, manuals and
procedures". There was no objection; therefore, Amendment 2 was
adopted.
Number 1270
CONNIE ANDERSON, Developmental Disabilities Program
Administrator, Division of Mental Health & Developmental
Disabilities (DMHDD), Department of Health & Social Services,
came forward to express support for HB 346. The bill will
require the DMHDD to review the wait list for persons with
developmental disabilities (DDs) and report the results of this
review annually to the governor and the legislature.
MS. ANDERSON explained that the wait list exists because there
are insufficient resources to meet the service needs of all
consumers eligible for DD services. Historically, there has been
little opportunity to report accurate information about the wait
list to the governor and the legislature, as well as to the
consumers, families and other stakeholders. In spring 1999 - for
the first time since the inception of the wait list in 1989 - the
division proactively took on the responsibility of a
comprehensive assessment of the wait list. The results of the
assessment proved to be of great value to consumers, families and
other stakeholders of the DD service delivery system. This bill
gives the division an ongoing opportunity to submit regular and
accurate information to guide decision making and program
planning. The opportunity to have this information available in
the public arena will also eliminate inaccuracies and
misunderstandings about the wait list and the division's policies
and practices relating to the needs of its consumers.
CHAIRMAN DYSON asked Ms. Anderson if she had any problems with
any of the amendments made today.
MS. ANDERSON answered no.
Number 1399
CHAIRMAN DYSON referred to page 2, line 11-13, and asked if the
information is used by the department for some sort of ranking or
prioritizing for the prospective recipients of the service.
MS. ANDERSON affirmed that.
CHAIRMAN DYSON asked Ms. Anderson what criteria are used for
advancing people on the list.
MS. ANDERSON said when she took the position almost a year and a
half ago, people had been waiting since 1985 for services; that
was not acceptable to her. The department looks at how long the
person has been waiting and what the level of need is, from the
most critical to the least critical level.
CHAIRMAN DYSON said he was surprised there was no fiscal note
with this bill. It seems to him that a significant amount of
work is demanded and wondered how the division would do that for
nothing.
MS. ANDERSON answered that the information about the wait list is
very current, clean and up to date. That was not the case a year
ago. A significant amount of time has already been invested to
provide the most accurate information available. As part of
working in partnership with the stakeholders, the division has
developed ways to share information, and this is one of them. It
was something planned on anyway with the existing resources.
CHAIRMAN DYSON asked if the bill is necessary, then.
MS. ANDERSON replied that she believes the bill is necessary
because it provides a regular opportunity to share information.
CHAIRMAN DYSON said he wouldn't know what would keep the division
from sending this information to the legislature and the governor
now.
MS. ANDERSON answered that it is always nice to have the
invitation.
Number 1629
MS. LAPE added that the EED is capable of providing the
information requested by the DHSS.
Number 1663
LYNN HETTICK testified via teleconference from Seward. The
mother of three disabled children, she shared her experiences in
dealing with the DMHDD and expressed support for HB 346. She
said parents have no idea what the wait list is for. Two of her
children were on the wait list for 1.5 to 2.5 years. Parents
need to know what the process is because right now there is no
process. Parents don't hear about the wait list until they
receive a letter from the state saying they are eligible.
Parents still don't know what they are eligible for, because no
one has told them what services are available.
CHAIRMAN DYSON encouraged her to establish some relationship with
her legislator. The legislator can often help get information
for a constituent in situations like this.
Number 1757
ERNEST DUMMANN testified via teleconference from Anchorage. He
is the parent of a child with a severe developmental disability.
He asked the committee to support HB 346. His child will require
lifelong services. He shared some of the experiences his family
had with his son. They began to seek services in 1988, only to
find out there was a wait list for services. There was no way to
know when services would be available. There was no formal
information on who would be selected for services or what
services may be available. Nor was there a written policy manual
from the state nor a formal appeal process to get any of this
information.
MR. DUMMANN stated that his family anguished for the next five
years, not so much from not having services but from not knowing
or being able to plan for their son and his future. Not having
information in a desperate situation is a torture. They did
receive services in 1994. With help, the family has returned
somewhat to normal. Right now, over 800 Alaskan families are in
the same position and are suffering, with little or no
information. He asked for the committee's support of HB 346 to
give families and the citizens of Alaska the knowledge to plan
for their futures.
Number 1877
SCOTT CALDER testified via teleconference from Fairbanks. He
expressed his support for HB 346. He commented that providing
information to parents on many programs is important because the
uncertainty is worse than torture.
Number 2003
MARLA ADAMS came forward to express support for HB 346. She
agreed it would be helpful to have the information.
Number 2039
KATHLEEN FITZGERALD, President, Key Coalition, came forward to
testify. She stated that the families and stakeholders had
advocated for a long time to have written policies and procedures
to follow the process. It is much easier to wait if one knows
what the process is and what he/she is waiting for. She urged
the committee to pass this bill.
REPRESENTATIVE COGHILL asked Ms. Fitzgerald if there is a
structural understanding of who goes where in the department and
how the Key Coalition connects with the department.
MS. FITZGERALD said she believes so. The Key Coalition works
with the Governor's Council on Disabilities & Special Education,
the stakeholder organization and the division to try to plan.
There is some collaboration, but there hasn't been a written
policy. Once everyone involved comes up with how the system
should work, it needs to be written down.
REPRESENTATIVE COGHILL said that as a freshman legislator, it was
difficult to get that type of information. He suggested that Key
Coalition may want to help line it out a little better.
MS. FITZGERALD said the Key Coalition was looking at a desk
manual similar to what the elder Alaskans use for providers and
individuals. It lays out for everybody the way things should
work and the policies and procedures and hearing rights are in
there together. There needs to be something like that on the
developmental disabilities side. She hopes that this generates
that.
Number 2200
CHAIRMAN DYSON commented that Ms. Fitzgerald made a good point
that getting this in law should help get past the "changing of
the guard" and administrations who have different emphases.
Number 2257
REPRESENTATIVE BRICE made a motion to move CSHB 346, version 1-
LS1347\H, Lauterbach, 3/1/00, as amended, out of committee with
individual recommendations and attached fiscal notes. There
being no objection, CSHB 346(HES) moved from the House Health,
Education and Social Services Standing Committee.
The committee took an at-ease from 3:52 p.m.-3:57 p.m.
HB 373 - STUDENT LOAN CORP PAYMENTS TO STATE
CHAIRMAN DYSON announced the next order of business as House Bill
No. 373, "An Act relating to return of contributed capital, or
payment of a dividend, to the state by the Alaska Student Loan
Corporation; and providing for an effective date."
DIANE BARRANS, Executive Director, Postsecondary Education
Commission, Department of Education & Early Development, came
forward to testify. She noted that the Alaska Student Loan
Corporation endorses this bill and asked Sheila King to present
it.
Number 2319
SHEILA KING, Finance Officer, Division of Finance, Postsecondary
Education Commission, Department of Education & Early
Development, came forward to present HB 373. The Alaska Student
Loan Corporation board endorsed this bill as another step as an
enterprise agency of the state. The corporation's return of
capital payment under this bill would be based on a percentage of
net income when net income is in excess of $2 million. The
structure of the payment was crafted to allow the corporation to
continue to issue new low-interest student loans to Alaskan
residents that would meet the criteria of the loan program while
continuing to increase their financial stability to continue to
provide services in the future. While the corporation's efforts
through this bill is focused on making a return to the state
general fund, she mentioned that when the Governor introduced the
bill, he expressed a desire to use the payment to provide a fund
source for the Alaska Scholars Program.
REPRESENTATIVE KEMPLEN asked Ms. King to explain how this payment
to the state works providing students with low-interest rates and
this return of capital to the state. The purpose is to provide
affordable education to Alaskan students so interest rates should
be kept as low as possible, and one way is to take the money
recovered from loans and plow it back into the principal. He
asked if capital is moved to something else, are lower interest
rates to students given up.
Number 2223
MS. KING answered that the calculation on the interest rate on
the loans is driven by the cost of the program with the component
of the administrative cost and the cost of borrowing to provide
funds for the loans. Loan receipts are recycled to provide a
portion of the loans, and the remaining portion is bonded. This
payment to the state would not affect those numbers
significantly. The only effect it would have to the income
statement would be an investment earning component on that
portion which is not considered in the calculation of the loan
rate. The loan rate is made up of two components: 1) the
administrative cost of running the program and 2) cost of
borrowing to fund the loans. The majority of the funds are
recycled back into the program to keep the borrowing at a
manageable level. There are requirements in the indenture that
require certain tests are met before any money could be taken out
of the trust which would be taking it out of the program. The
levels projected for this payment are in the range of $600,000 to
$2.2 million each year over the next five years.
REPRESENTATIVE KEMPLEN asked if she had any written information
so he could actually see the model that has been developed for
those calculations.
MS. KING said she would get that for him.
Number 2122
REPRESENTATIVE BRICE believes it is a real novel approach for
paying for the Alaska Scholars Program. He appreciates it was
put forth by the Administration and the University of Alaska.
Number 2102
REPRESENTATIVE WHITAKER commented that the Alaska Scholars
Program has nothing to do with the student loan program.
MS. KING said in developing the idea of the dividend, the
corporation board has expressed an interest that the funds be
used for an educational purpose. The desire to use it for the
Alaska Scholars Program came from the Governor's office and that
is an educational purpose which is under the broad purview of
what the board has expressed.
REPRESENTATIVE WHITAKER said certainly the scholars program is
admirable, but he is concerned that it may be asking those who
would be utilizing an educational loan to somehow help fund the
Alaska Scholars Program with students that may not have the
financial need that those intended to be helped by the loan
program would have.
MS. KING answered the structure of the payment wouldn't impact
the interest rate on the loans. The payment would be considered
a return of capital and under the parameters in the indenture, it
can be taken out and passed on.
Number 2024
REPRESENTATIVE WHITAKER said the loan program is designed to help
those in financial need; the Alaska Scholars Program is not
necessarily designed to help those in financial need. If the two
cost factors are the cost of administration and the cost of
borrowing, certainly the proceeds from past borrowing could be
utilized to offset administrative costs, therefore the cost to
the borrower could be decreased. If funds are not borrowed but
rather earnings utilized for lending purposes, certainly again
the rate charged to those borrowing the money could be reduced.
MS. KING reiterated that cash is recycled to the extent to reduce
the borrowing to a manageable level. The amount of the dividend
with the parameters keeps it at a level that would not pass that
cost on to the borrowers. The amount of the dividend is not
included in expense calculation so it doesn't inflate that
interest rate to the borrower. Additionally, the program is open
to all Alaska residents whether they're in financial need or not.
It has a minimal impact on the corporation's bottom line on the
net income. Not everything in the net income computation is
considered in the rate charged on the loans.
Number 1851
REPRESENTATIVE BRICE said the state legislature established the
interest rate that students pay a couple of years ago. He
understood the ability to turn the profits of the corporation
into lower rates would not be possible without a separate piece
of legislation.
MS. BARRANS answered the corporation board could have chosen to
recycle all of its net income into new loans. Philosophically a
couple of different issues were on the table when this idea was
endorsed. One is that the corporation has asked this legislature
and the administration to treat it as an enterprise organization.
Toward that end, the corporation was interested in having the
state have "a share of the positive return." The corporation
board wanted to do that in terms of moving this symbolic level of
money back to the general fund to be used as the legislature and
administration saw fit. If in turn the legislature wanted to
reappropriate these funds back to the corporation and create some
offset for existing interest rates, it could do that. The
corporation is not seeking that because it's offering very
competitive interest rates as it is. However, that is something
that could be done. She noted that the interest rates are fixed.
Those can't be reduced without creation of a fund that would
actually pay the corporation to offset those rates. Going
forward it can reduce interest rates as has been done for the
last two years and hopefully will be done in the future because
the program costs portion are reducing the interest rate formula.
REPRESENTATIVE BRICE asked what the interest rate is for next
fall semester.
Number 1749
MS. BARRANS answered the note rate is 8 percent, and there is
still the interest free period while someone is in school so the
effective rate of interest is below 8 percent when the six-months
grace period is calculated.
MS. BARRANS explained that the interest rate is calculated based
on the average of the last five years program costs. It is an
average thing moving forward and it's all fairly speculative. It
presumes that interest rates on bonds are going up when actually
the corporation has gotten very good rates on bonds. One of the
ways it has been able to reduce interest rates on loans is there
have been better rates on the bonds sold. The bonds have been
upgraded to AA and are very competitive as those are sold. It
wouldn't necessarily reduce the interest costs.
REPRESENTATIVE KEMPLEN asked if it is possible to create another
fund to help reduce the interest rates.
MS. BARRANS said if the corporation received an appropriation
from the state to pay in lieu of the borrowers paying their fixed
rate of interest, then the state could give those funds. There
would need to be an external revenue source in order for that to
actually be feasible. The interest rates borrowers are paying on
the notes are reflected in all of the corporation's official
statements. Those rates are fixed and cannot be arbitrarily
reduced. As far as the cash flow, certain warranties have been
made to the bond holders that the corporation will charge that
rate on those loans without an infusion of cash; it wouldn't be
able to just arbitrarily reduce the rate on those loans.
REPRESENTATIVE KEMPLEN asked why the capital can't be recycled
and use that money to lower the interest rate on those old loans.
Number 1603
MS. BARRANS answered if this bill passes and $2.2 million is
returned to the state in the form of general funds, and if the
legislature were to reappropriate those funds to the corporation
for that purpose, the corporation could do that.
REPRESENTATIVE KEMPLEN asked if she was saying that the existing
statute prohibits the corporation from recycling the return on
capital into reducing the interest rates on existing loans.
MS. BARRANS answered no. She is suggesting that the indenture on
the bonds prevents that. The corporation has made a commitment
to run the program with these financial terms and conditions in
place. If the corporation were to arbitrarily just reduce its
net income in order to offset those rates, it would be in
violation of the bond covenants.
REPRESENTATIVE KEMPLEN said he is concerned that they are taking
money away from students and putting it into the general fund
where it can be used for road maintenance.
Number 1532
CHAIRMAN DYSON asked what the cash balance is this week.
MS. KING answered about $240 million.
CHAIRMAN DYSON asked what that is invested in.
MS. KING said a large portion is invested in investment
agreements that are similar to repurchase agreements. There are
some short-term repurchase agreements and a few government
securities.
CHAIRMAN DYSON asked if additional appropriations were needed
during the years the collections weren't very good.
Number 1483
MS. KING said she believes that 1993 was the last year there was
any general fund appropriations received.
CHAIRMAN DYSON asked Ms. King if she would get information on
those amounts that were made from the general fund to the
corporation.
REPRESENTATIVE KEMPLEN requested additional information about
exactly what prohibits the corporation from using this return on
capital to lower interest rates on existing loans and future
loans.
REPRESENTATIVE GREEN asked what was the sudden change from
running in the red to running in the black around 1993. He
wondered if it had anything do with garnishing permanent fund
dividends (PFD).
Number 1411
MS. KING replied that the change really came from legislation
passed that gave the corporation additional collection tools such
as credit checking and credit reporting; wage garnishing will be
implemented soon. The collection department has been beefed up
and some electronic devices to help contact people have been
added.
MS. BARRANS added that occupational licensing has been a leverage
tool for several years as well as an internal policy shift. The
PFD garnishment tool has been in effect since the late 1980s.
The garnishments have risen dramatically with the increase of the
dollar amount of the PFDs. In the past, the commission would
take the amount that was past due on the borrower's original
schedule; now the entire amount is taken.
CHAIRMAN DYSON asked if the corporation is able to go after
Native corporation dividends.
Number 1306
MS. BARRANS answered there is probably an ability to issue an
order to withhold and deliver; the commission hasn't gotten to
that stage of flexing the administrative garnishment authority
right now. The wage garnishing is the "big bang for our buck."
The commission will continue to explore what that authority
allows us to do.
CHAIRMAN DYSON announced that HB 373 would be held over.
ADJOURNMENT
There being no further business before the committee, the House
Health, Education and Social Services Standing Committee meeting
was adjourned at 4:25 p.m.
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