00                             HOUSE BILL NO. 320                                                                          
01 "An Act relating to a student loan repayment program for occupations or fields in                                       
02 which a shortage of qualified employees exists; and providing for an effective date."                                   
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
05 to read:                                                                                                                
06       FINDINGS; PURPOSE. (a) The legislature finds that a shortage of qualified                                         
07 employees in certain occupations and fields exists in this state.                                                       
08       (b)  The purpose of this Act is to establish the Alaska qualified employees recruitment                           
09 loan repayment program to provide financial incentives through the repayment, in whole or                               
10 part, by the state of education loans from the corporation for qualified applicants upon the                            
11 completion of a term of employment in the state.                                                                        
12    * Sec. 2. AS 14.42.030(b) is amended to read:                                                                      
13            (b)  The commission shall                                                                                    
14                 (1)  administer the financial aid and interstate education compact                                      
01       programs under AS 14.43.091 - 14.43.920 and 14.43.990, and AS 14.44;                                              
02                 (2)  administer the provisions of AS 14.48 concerning regulation of                                     
03       postsecondary educational institutions;                                                                           
04                 (3)  resolve disputes under a consortium or other cooperative agreement                                 
05       between institutions of public and private higher education in the state; [AND]                                   
06                 (4)  serve as the state agency required under 20 U.S.C. 1001 - 1155;                                
07       and                                                                                                           
08                 (5)  perform duties assigned under AS 14.43.850 - 14.43.900                                         
09       (Alaska qualified employee recruitment loan repayment program).                                               
10    * Sec. 3. AS 14.42.040 is amended by adding a new subsection to read:                                              
11            (c)  The executive director of the commission shall administer the Alaska                                    
12       qualified employee recruitment loan repayment program under AS 14.43.850 -                                        
13       14.43.900 in accordance with standards and eligibility criteria set by the commission.                            
14    * Sec. 4. AS 14.42.295(a) is amended to read:                                                                      
15            (a)  The board may elect to pay the state a return of contributed capital, or a                              
16       dividend, for each base fiscal year that the corporation's net income equals or exceeds                           
17       $2,000,000. The payment may not be less than 10 percent nor more than 35 percent, as                              
18       approved by the board, of the corporation's net income for the base fiscal year, and is                           
19       subject to the provisions of any applicable bond indentures of the corporation. If a                              
20       payment is authorized under this section, payment must be made available by the                                   
21       corporation before the end of the fiscal year in which payment has been authorized.                               
22       The corporation shall notify the commissioner of revenue when the amount of the                                   
23       payment authorized under this section is available for appropriation. The money                               
24       made available under this subsection may be appropriated for the Alaska                                       
25       qualified employee recruitment loan repayment program under AS 14.43.850 -                                    
26       14.43.900.                                                                                                    
27    * Sec. 5. AS 14.43 is amended by adding new sections to read:                                                      
28     Article 12A. Alaska Qualified Employee Recruitment Loan Repayment Program.                                        
29            Sec. 14.43.850. Program established. (a) The Alaska qualified employee                                     
30       recruitment loan repayment program is established to provide financial incentives for                             
31       qualified employees in certain occupations and fields to work in this state through the                           
01       repayment of education loans.                                                                                     
02            (b)  The program is not a financial obligation of the corporation.                                           
03            Sec. 14.43.860. Alaska qualified employee recruitment loan repayment                                       
04       program account. (a) The Alaska qualified employee recruitment loan repayment                                   
05       program account is created in the general fund. The account shall be used for the                                 
06       repayment of education loans from the corporation under the program and to pay for                                
07       the costs of administering the program.                                                                           
08            (b)  The account includes money that the legislature appropriates from the                                   
09       corporation's dividend to the state under AS 14.42.295, the interest and earnings on                              
10       money that are appropriated to the account, and funds contributed from federal or                                 
11       other sources and appropriated by the legislature to the account. If money available is                           
12       inadequate to finance the requests from eligible applicants under this program for a                              
13       fiscal year, additional money may be requested from the general fund and appropriated                             
14       to the account for the program.                                                                                   
15            Sec. 14.43.870. Administration. (a) The Alaska qualified employee                                          
16       recruitment loan repayment program shall be administered by the executive director                                
17       using                                                                                                             
18                 (1)  the standards and eligibility criteria of the program established by                               
19       the commission under AS 14.43.880; and                                                                            
20                 (2)  the financial management standards for proper administration of                                    
21       the Alaska qualified employee recruitment loan repayment program account as                                       
22       established by the commission.                                                                                    
23            (b)  The commission may adopt regulations to carry out its duties and the                                    
24       executive director's duties under the program.                                                                    
25            Sec. 14.43.880. Eligibility criteria. (a) An applicant for loan repayment under                            
26       AS 14.43.850 - 14.43.900 must meet the following criteria:                                                        
27                 (1)  the applicant was hired by the state as a qualified full-time                                      
28       employee in an occupation or field specified under (b) of this section in this state on or                        
29       after July 1, 2012, and within four years after attaining a degree that qualifies the                             
30       applicant for the specified occupation or field;                                                                  
31                 (2)  the applicant is employed by the state as a qualified employee in a                                
01       specified occupation or field in this state during the loan repayment period;                                     
02                 (3)  the applicant owes an outstanding education loan debt obligation to                                
03       the corporation;                                                                                                  
04                 (4)  the applicant shall agree to fulfill any requirement of the program.                               
05            (b)  An applicant under this section must have completed a postsecondary                                     
06       program that qualifies the applicant to be employed and licensed by the state, if a                               
07       license is required by state law, in an occupation or field specified jointly by the                              
08       commissioner of administration and the commissioner of labor and workforce                                        
09       development as having a shortage of qualified persons available to be employed by the                             
10       state.                                                                                                            
11            Sec. 14.43.890. Conditions and limitations on loan payments. (a) The                                       
12       executive director shall repay a loan under this section directly to the corporation in an                        
13       amount not to exceed $50,000, payable by dividing that amount into annual payments                                
14       to be paid over a period of not more than six years, as follows:                                                  
15                 (1)  for qualified employment in rural areas of the state,                                              
16                      (A)  after one year of employment, 25 percent of the                                               
17            outstanding loan balance;                                                                                    
18                      (B)  after two years of employment, 25 percent of the                                              
19            outstanding loan balance;                                                                                    
20                      (C)  after three years of employment, 25 percent of the                                            
21            outstanding loan balance;                                                                                    
22                      (D)  after four years of employment, the remaining outstanding                                     
23            loan balance;                                                                                                
24                 (2)  for employment in areas of the state that are not rural,                                           
25                      (A)  after one year of employment, 16.67 percent of the                                            
26            outstanding loan balance;                                                                                    
27                      (B)  after two years of employment, 16.67 percent of the                                           
28            outstanding loan balance;                                                                                    
29                      (C)  after three years of employment, 16.67 percent of the                                         
30            outstanding loan balance;                                                                                    
31                      (D)  after four years of employment, 16.67 percent of                                              
01            outstanding loan balance;                                                                                    
02                      (E)  after five years of employment, 16.67 percent of the                                          
03            outstanding loan balance;                                                                                    
04                      (F)  after six years of employment, the remaining outstanding                                      
05            loan balance.                                                                                                
06            (b)  A repayment benefit must be conditioned on the availability of money for                                
07       the program and is subject to appropriation. The executive director shall monitor the                             
08       outstanding repayment benefits made under the program to ensure the adequacy of the                               
09       balance of the account to meet program needs. If the executive director finds that the                            
10       balance of the account is                                                                                         
11                 (1)  sufficient to pay for existing repayment benefits but insufficient for                             
12       new or pending applicants, the executive director shall pay existing benefits and shall                           
13       approve repayment benefits available for new or pending applicants according to                                   
14       criteria approved by the commission; or                                                                           
15                 (2)  insufficient to pay for existing repayment benefits, the executive                                 
16       director shall prorate the money available in the account among all existing benefit                              
17       recipients and shall suspend the acceptance of new applications and the processing of                             
18       pending applications under the program.                                                                           
19            (c)  An education loan or interest on a loan is not eligible for repayment under                             
20       the program if the loan or interest is eligible for repayment under another source,                               
21       including another loan repayment or forgiveness program.                                                          
22            (d)  A repayment benefit approved under this section may not be construed as                                 
23       an entitlement and is subject to cancellation or modification by the commission at any                            
24       time.                                                                                                             
25            Sec. 14.43.900. Definitions. In AS 14.43.850 - 14.43.900, unless the context                               
26       otherwise requires,                                                                                               
27                 (1)  "account" means the Alaska qualified employee recruitment loan                                     
28       repayment program account established in AS 14.43.860;                                                            
29                 (2)  "executive director" means the executive director of the                                           
30       commission;                                                                                                       
31                 (3)  "program" means the Alaska qualified employee recruitment loan                                     
01       repayment program;                                                                                                
02                 (4)  "rural" means a community with a population of 5,500 or less that                                  
03       is not connected by road or rail to Anchorage or Fairbanks or with a population of                                
04       1,500 or less that is connected by road or rail to Anchorage or Fairbanks.                                        
05    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
06 read:                                                                                                                   
07       TRANSITION: REGULATIONS. The Alaska Commission on Postsecondary                                                   
08 Education may immediately proceed to adopt regulations necessary to implement this Act.                                 
09 The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before                               
10 July 1, 2012.                                                                                                           
11    * Sec. 7. Section 6 of this Act takes effect immediately under AS 01.10.070(c).                                    
12    * Sec. 8. Except as provided in sec. 7 of this Act, this Act takes effect July 1, 2012.