Legislature(1995 - 1996)
02/08/1995 09:01 AM Senate HES
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= bill was previously heard/scheduled
SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE
February 8, 1995
9:01 a.m.
MEMBERS PRESENT
Senator Lyda Green, Chairman
Senator Mike Miller
Senator Johnny Ellis
Senator Judy Salo
MEMBERS ABSENT
Senator Loren Leman, Vice-Chairman
COMMITTEE CALENDAR
SENATE BILL NO. 39
"An Act relating to memorial scholarship loans."
SENATE BILL NO. 36
"An Act relating to interest on and repayment of A. W. Brindle
memorial scholarship loans; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
No previous action to record.
WITNESS REGISTER
Joe Ambrose
Staff to Senator Taylor
State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Overview of SB 39.
Robin Lown, Lieutenant
State Troopers
Chair, Michael Murphy Scholarship
P.O. Box 33885
Juneau, Alaska 99801
POSITION STATEMENT: Supported SB 39.
Senator Fred Zharoff
State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Prime sponsor of SB 36.
Joe McCormick, Executive Director
Alaska Commission on Postsecondary Education
3030 Vintage Blvd.
Juneau, Alaska 99801-7109
POSITION STATEMENT: Explained Amendment 2 to SB 36.
ACTION NARRATIVE
TAPE 95-2, SIDE A
SHES - 2/8/95
SB 39 MEMORIAL SCHOLARSHIP LOANS
Number 002
CHAIRMAN GREEN called the Senate Health, Education and Social
Services (HESS) Committee to order at 9:01 a.m. She introduced
SB 39 as the first order of business before the committee.
JOE AMBROSE, staff to Senator Taylor, reviewed the Sponsor
Statement. SENATOR SALO asked if SB 39 was speaking to the Trooper
Academy Program. Mr. Abrose clarified that SB 39 refers to a
course that is complementary to the Trooper Academy Program, but
not part of that program.
SENATOR SALO inquired as to the funding of the Memorial
Scholarship; do state employees support this fund with donations of
annual leave? JOE AMBROSE stated that there are several manners in
which individual Troopers can donate to the Memorial Scholarship;
AS 14.43.300 describes various scholarship loan programs and their
funding sources. Mr. Ambrose did not know the current balance for
the Memorial Scholarship.
Number 089
SENATOR SALO asked if the state employees have a position on this
change in statute. JOE AMBROSE said that he had not seen a formal
position from the Employee's Association.
CHAIRMAN GREEN inquired as to the description of a typical
recipient of this scholarship. JOE AMBROSE could not answer that
question.
SENATOR SALO pointed out that the prerequisites for this
scholarship are a high school diploma or a GED. JOE AMBROSE noted
that this program is a fitting preparatory measure for individuals
who may want to continue into other areas such as the Trooper
Program.
Number 136
LIEUTENANT ROBIN LOWN, State Trooper and Chair of the Michael
Murphy memorial scholarship, stated that he received and reviewed
all the applications for this scholarship. He supported the
changes because they would allow individuals interested in
attending the Alaska Law Enforcement Training (ALET) program the
ability to do so. He informed the committee that an individual who
goes to the ALET program without the Department's sponsorship would
face a $5,000 payment for that training. Without that training, an
individual cannot become a law enforcement officer.
CHAIRMAN GREEN asked how many applicants there would be for this
scholarship. LIEUTENANT ROBIN LOWN said that there are usually
fifteen to twenty applicants per year.
LIEUTENANT ROBIN LOWN explained that in years with too many
applicants, the scholarship amount has been decreased per recipient
in order that more applicants can receive assistance. He expressed
more interest in those individuals moving towards certification for
a police officer rather than law degrees. He urged passage of
SB 39.
SENATOR MILLER moved that SB 39 be moved out of committee with
individual recommendations and its accompanying fiscal notes.
Hearing no objection, it was so ordered.
SHES - 2/8/95
SB 36 BRINDLE SCHOLARSHIP LOANS
Number 186
CHAIRMAN GREEN introduced SB 36 as the next order of business
before the committee.
SENATOR ZHAROFF, Prime Sponsor, noted that this loan program came
about after receiving a letter from Mr. Alec Brindle. He explained
that SB 36 intended to make loans to Alaskan students pursuing
degrees in fields beneficial to the fishing industry. Fish
processing industry contributions fund this program. He pointed
out that the committee packets included the 1994-1995 Winn Brindle
Memorial Scholarship Loan Status Report.
Senator Zharoff informed the committee that the program has
received $1.8 million in contributions since 1987; however,
approximately $1.4 million remains in the fund. Students are not
utilizing the program to its potential. SB 36 specifies a 50
percent forgiveness of the loan and a cap of 5 percent on the
loan's interest rate in order to stimulate more use of this loan
program. He referred to the two proposed amendments dealing with
this legislation.
CHAIRMAN GREEN pointed out that the first deletion cited in Senator
Zharoff's amendment should be on page 2, line 2 not page 2, line 4.
Number 284
SENATOR ELLIS moved to adopt Senator Zharoff's corrected amendment,
Amendment 1. Without objection, Amendment 1 was adopted.
AMENDMENT 1
Page 2, line 2, after the first "loan":
Delete: "indebtedness"
Insert: "principal"
Page 2, line 4, after the second "loan":
Delete: "indebtedness"
Insert: "principal"
Page 2, line 6, after "principal"
Delete: "and interest"
CHAIRMAN GREEN asked if Senator Zharoff could give an example of an
individual who is employed full-time in Alaska, but resides outside
the state in order to support the language suggested in his other
amendment, Amendment 2. SENATOR ZHAROFF explained that Amendment
2 addresses situations such as an individual working for Trident
Seafoods while keeping a residence in Seattle. The individual
would be supporting the fishing industry of Alaska even while
maintaining a residence in another state.
SENATOR ZHAROFF stated that Amendment 2 would expand the use of the
program. He did not have a problem with the language as long as
the fishing industry was supported. He preferred that only
Alaskans be able to utilize this program, however, the fishing
industry does not operate completely out of Alaska.
SENATOR MILLER expressed concern with encouraging individuals
living outside of Alaska to use Alaska's resources. SENATOR
ZHAROFF agreed.
Number 337
JOE McCORMICK, Executive Director of the Alaska Commission on
Postsecondary Education, clarified that a student must be a
resident of Alaska in order to be eligible to apply for and receive
funds from this program. In the past, these individuals have
tended to change their state of residence while continuing full-
time employment in the fishing industry. This creates
complications in administering the forgiveness provisions of the
Alaska student loan program model used for this loan.
SENATOR ELLIS asked if Amendment 2 means that an individual would
have to work in the fishing industry for five years in order to
receive forgiveness if he no longer resides in Alaska. Mr.
McCormick said that was correct. SENATOR SALO specified that the
work would have to be in the Alaska Fisheries.
Number 361
SENATOR SALO moved Amendment 2 for purposes of further discussion.
SENATOR MILLER objected. Senator Miller reiterated his concern
with encouraging individuals to take advantage of Alaska's
resources and then allow them to move out of the state and continue
to receive benefits such as loan forgiveness.
JOE McCORMICK maintained that these individuals still generate and
contribute to Alaska's economy because they work in the Alaska
Fishing Industry. He emphasized that this loan's incentive
attempts to attract individuals to the Alaska Fishing Industry.
Tracking the movement of these individuals is an administrative
nightmare when dealing with the forgiveness portion of the loan.
SENATOR MILLER maintained his objection.
CHAIRMAN GREEN asked if other comparable loan programs with
forgiveness provisions allowed their recipients to receive
forgiveness without being Alaska residents. JOE McCORMICK
specified that the only forgiveness program he knew of required the
recipients to return to live in Alaska for five years no matter the
profession. SB 36 emphasizes a specific vocation, the fishing
industry. The forgiveness can been binded to the vocation rather
than the place of residency.
Number 401
SENATOR MILLER suggested dividing Amendment 2. He moved to divide
Amendment 2 into Amendment 2A, lines 1 and 2 of the amendment, and
Amendment 2B, lines 3 through 6 of the amendment.
SENATOR ZHAROFF proposed an example in which Amendment 2 would be
needed. After an individual receives the loan and training, the
industry may want to place the person in the industry's
headquarters which happen to be located in another state. SENATOR
MILLER understood this rare case and reiterated his concerns. Such
individuals should be encouraged to stay in Alaska even in the off
season in order to contribute to local communities not just the
seasonal industry.
SENATOR SALO stated that she was almost convinced by Mr.
McCormick's administrative nightmare scenario, however, another
administrative nightmare could occur when tracking which fishery
the individual is working for if they move around so much.
CHAIRMAN GREEN reminded the committee that the motion to split
Amendment 2 was still before them. Without objection, Amendment 2
was split into Amendment 2A and Amendment 2B.
SENATOR MILLER moved to adopt Amendment 2A. Without objection,
Amendment 2A was adopted.
AMENDMENT 2A
Page 2, line 4, after "time":
Insert "in the state"¶
SENATOR SALO removed her motion to adopt Amendment 2.
Number 470
SENATOR SALO moved that SB 36 as amended be moved out of committee
with individual recommendations. Hearing no objection, it was so
ordered.
CHAIRMAN GREEN noted that there would be a joint HES committee
meeting on Friday with the Executive Board of the Governor's
Council on Disabilities and Special Education.
There being no further business before the committee, the meeting
adjourned at 9:45 a.m.
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