CSSB 301(HES): "An Act relating to postsecondary education; and providing for an effective date."
00CS FOR SENATE BILL NO. 301(HES) 01 "An Act relating to postsecondary education; and providing for an effective 02 date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 08.02.025(a) is amended to read: 05 (a) A person licensed under this title shall comply with the student loan 06 repayment provisions under AS 14.43 that are applicable to the person. 07 Notwithstanding another provision of law, a license issued to a person under this title 08 may not be renewed if the licensee [BORROWER] and the department 09 [DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT] have 10 received notice from the Alaska Student Loan Corporation [COMMISSION ON 11 POSTSECONDARY EDUCATION] that the licensee is in default on a student loan 12 provided to the licensee. This action may be taken no sooner than 60 days after the 13 Alaska Student Loan Corporation [COMMISSION ON POSTSECONDARY 14 EDUCATION] has notified the licensee [BORROWER] of the default status of the
01 loan as provided under AS 14.43.120(i). If a licensee's [AN] appeal of a 02 determination of default status is pending [ON BEHALF OF THE LICENSEE], the 03 Alaska Student Loan Corporation [COMMISSION ON POSTSECONDARY 04 EDUCATION] shall notify the department and the department [RENEWAL] may not 05 deny renewal [BE DENIED] under this section until and unless the [APPEAL HAS 06 BEEN CONCLUDED AND THE] default status has been affirmed on appeal. The 07 denial [DENIAL] of renewal of a license shall continue until the department 08 [DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT] receives 09 notice from the Alaska Student Loan Corporation [COMMISSION ON 10 POSTSECONDARY EDUCATION] that the licensee is no longer in default on the 11 student loan. 12 * Sec. 2. AS 14.40.170(b) is amended to read: 13 (b) The Board of Regents may 14 (1) adopt reasonable rules, orders, and plans with reasonable penalties for 15 the good government of the university and for the regulation of the Board of Regents; 16 (2) determine and regulate the course of instruction in the university with 17 the advice of the president; 18 (3) set student tuition and fees; 19 (4) receive and spend university receipts in accordance with AS 37.07 20 ( [THE] Executive Budget Act); 21 (5) enter into agreements with government or postsecondary 22 education officials of this state or other states to provide postsecondary educational 23 services and programs to residents of this state pursuing a medical education; an 24 agreement with another state must be limited to services and programs that are 25 unavailable in this state [(AS 37.07)]. 26 * Sec. 3. AS 14.42.100 is amended to read: 27 Sec. 14.42.100. CREATION OF ALASKA STUDENT LOAN 28 CORPORATION. The [THERE IS CREATED THE] Alaska Student Loan 29 Corporation is created as [. THE CORPORATION IS] a public corporation and 30 government instrumentality within the Department of Revenue [EDUCATION] but 31 having a legal existence independent of and separate from the state. The corporation
01 may not be terminated as long as it has outstanding bonds, notes, or other obligations 02 [OUTSTANDING]. Upon termination of the corporation, its rights and property pass 03 to the state. 04 * Sec. 4. AS 14.42.120 is repealed and reenacted to read: 05 Sec. 14.42.120. CORPORATION GOVERNING BODY. (a) The corporation 06 shall be governed by a board of directors consisting of the members of the Alaska 07 Commission on Postsecondary Education under AS 14.48.035. The governor's appointees 08 shall serve at the pleasure of the governor for four-year staggered terms. 09 (b) Two members of the legislature shall serve as ex officio nonvoting members 10 of the board of directors. The two ex officio nonvoting members shall include one 11 member of the senate appointed by the president of the senate and one member of the 12 house appointed by the speaker of the house of representatives. 13 (c) A full-time postsecondary student shall serve as a nonvoting member of the 14 board of directors. The governor shall appoint the student member from a list of 15 nominees within 60 days after it is submitted. The list must consist of the names of two 16 nominees from each four-year public or nonprofit college or university campus in the state 17 that has representative student government. The nominees shall be selected from a 18 student election held on each campus. Elections under this subsection shall be held 19 concurrently with student regent elections required under AS 14.40.150(b) and conducted 20 under rules established by the Office of the Governor. The term of office of the student 21 member is two years beginning June 1 of the year in which the appointment is made. 22 Membership on the corporation is immediately forfeited by a student member who ceases 23 to be a full-time student. Within 60 days after a vacancy occurs, the governor shall 24 appoint a successor from those students appearing on the list of nominees to serve for the 25 unexpired term of the original appointee. In this subsection, "campus" means a portion 26 of the college or university designated as a "campus" by the board of the college or 27 university. 28 (d) A governing body member, trustee, official, or employee of a public, private, 29 or proprietary institution of postsecondary or higher education in the state may not be 30 appointed to membership on the corporation as representative of the general public for the 31 purpose of (a) of this section.
01 (e) Members of the board serve without compensation, but the voting members 02 who are not state employees and the student member are entitled to per diem and travel 03 expenses authorized for boards and commissions under AS 39.20.180. 04 (f) Each year, the board shall elect a chair from among its voting membership. 05 A majority of the voting members constitute a quorum for organizing the board, 06 conducting board business, and exercising the powers of the corporation. 07 * Sec. 5. AS 14.42.160 is repealed and reenacted to read: 08 Sec. 14.42.160. EXECUTIVE OFFICER AND STAFF; ADMINISTRATION. 09 (a) The corporation may appoint an executive director as the corporation's executive 10 officer. The executive officer is a member of the exempt service under AS 39.25.110, 11 serves at the pleasure of the corporation, and receives compensation fixed by the 12 corporation. The executive officer appoints persons to the staff positions authorized by 13 the corporation, and staff compensation is fixed by the corporation. Each employee of 14 the corporation shall participate as a member of the public employees' retirement system 15 (AS 39.35). 16 (b) The corporation is not a division in the Department of Revenue. The 17 corporation, members of the corporation, the executive officer, and staff are in the 18 Department of Revenue for administrative support services only, and they are not subject 19 to the direction of the commissioner of revenue. 20 (c) Subject to review by the corporation, the executive director shall administer 21 the student loan and grant programs under AS 14.43. 22 * Sec. 6. AS 14.42 is amended by adding a new section to read: 23 Sec. 14.42.180. LEGAL COUNSEL. The attorney general is legal counsel for 24 the corporation. The attorney general shall advise the corporation in legal matters arising 25 in the discharge of its duties and represent the corporation in actions to which it is a 26 party. If, in the opinion of the corporation, the public interest is not adequately 27 represented by counsel in a proceeding, the attorney general, upon request of the 28 corporation, shall represent the public interest. 29 * Sec. 7. AS 14.42 is amended by adding a new section to read: 30 Sec. 14.42.195. FUNCTIONS OF THE CORPORATION. (a) The corporation 31 shall administer the student loan fund under AS 14.42.210 and the student loan and grant
01 programs under AS 14.43. 02 (b) The corporation may adopt regulations under AS 44.62 (Administrative 03 Procedure Act) to carry out the purposes of AS 14.43. 04 * Sec. 8. AS 14.42.200(10) is amended to read: 05 (10) gather information on student loans available to residents of Alaska 06 and disseminate the information to reasonably assure that qualified residents are aware of 07 financial resources available to those attending or desiring to attend institutions for which 08 loans may be made under AS 14.43.100 - 14.43.325 [AS 14.43.090 - 14.43.325], 09 14.43.600 - 14.43.700, or 14.43.710 - 14.43.790; 10 * Sec. 9. AS 14.42.210(a) is amended to read: 11 (a) The student loan fund is established in the corporation. The student loan fund 12 is a trust fund to be used to carry out the purposes of AS 14.42.100 - 14.42.390, 13 AS 14.43.100 - 14.43.325 [AS 14.43.090 - 14.43.325], 14.43.600 - 14.43.700, and 14 14.43.710 - 14.43.790. The fund consists of money or assets appropriated or transferred 15 to the corporation for the fund and money or assets deposited in it by the corporation. 16 The corporation may establish separate accounts in the fund and shall establish separate 17 accounts for the teacher scholarship revolving loan account under AS 14.43.620 and 18 the family education loan account under AS 14.43.720. 19 * Sec. 10. AS 14.42.210(b) is amended to read: 20 (b) Money and other assets of the student loan fund may be used to secure bonds 21 of the corporation, invested in student loans and investments under AS 37.10.071, and 22 used to make [PURCHASE] loans approved under AS 14.43.090 - 14.43.325, 14.43.600 - 23 14.43.700, or 14.43.710 - 14.43.790. 24 * Sec. 11. AS 14.43.100 is amended to read: 25 Sec. 14.43.100. APPLICATIONS. (a) Applications shall be submitted to the 26 executive director of the corporation [COMMISSION]. 27 (b) A person whose loan application is not approved by the executive director of 28 the corporation [COMMISSION] may appeal to the corporation [COMMISSION] and 29 the corporation [COMMISSION] shall consider the application. 30 * Sec. 12. AS 14.43.110, as amended by sec. 1, ch. 5, SLA 1996, is amended to read: 31 Sec. 14.43.110. STUDENT LOANS. (a) In a school year, the corporation
01 [COMMISSION] may make a loan not to exceed 02 (1) $8,500 to a full-time undergraduate student or $4,500 [$5,000] to a 03 half-time undergraduate student attending a college or university if the full- or half-time 04 student is otherwise eligible under AS 14.43.125; 05 (2) $9,500 to a full-time graduate student or $5,000 [$4,500] to a 06 half-time graduate student attending a college or university if the full- or half-time 07 graduate student is otherwise eligible under AS 14.43.125; 08 (3) $5,500 to a full-time student or $2,000 to a half-time student if the 09 full- or half-time student is attending a career education program [THAT IS AT LEAST 10 SIX WEEKS IN LENGTH] and is otherwise eligible under AS 14.43.125. 11 (b) The corporation [COMMISSION] may make a loan for a summer term, even 12 if the total loan for the school year exceeds the limit imposed under (a) of this section if 13 the loan for the summer term is counted against the limit imposed under (a) of this 14 section for the following school year. 15 (c) The corporation [COMMISSION] shall adopt regulations establishing a 16 minimum amount for which a loan may be made. 17 * Sec. 13. AS 14.43.120(b), as amended by sec. 3, ch. 5, SLA 1996, is amended to read: 18 (b) Scholarship loans may only be used to attend a 19 (1) career education program operating on a sound fiscal basis that has 20 (A) operated for two years before the borrower attends; and 21 (B) submitted an executed program participation agreement as 22 required by the corporation [COMMISSION]; or 23 (2) a college or university that 24 (A) has operated for at least two years before the borrower 25 attends; 26 (B) is accredited by a national or regional accreditation association 27 recognized by the Council on Recognition of Postsecondary Accreditation or is 28 approved by the corporation [COMMISSION]; 29 (C) if the loans are federally insured, is approved by the United 30 States Secretary of Education; 31 (D) is a degree granting institution; and
01 (E) has submitted an executed program participation agreement 02 as required by the corporation [COMMISSION]. 03 * Sec. 14. AS 14.43.120(c), as amended by sec. 4, ch. 5, SLA 1996, is amended to read: 04 (c) To maintain a loan awarded to a full-time student, the student must continue 05 to be enrolled as a full-time student in good standing in a career education program, 06 college, or university that meets the requirements under (b) of this section. To maintain 07 a loan awarded to a half-time student, the student must continue to be enrolled as a half- 08 time student in good standing in (1) a career education program, college, or university in the state 09 that meets the requirements under (b) of this section, or (2) a career education program, college, 10 or university that meets the requirements under (b) of this section, and be physically present in 11 this [THE] state while attending the career education program, college, or university. The 12 corporation [COMMISSION] shall adopt regulations defining "good standing" for purposes of 13 this subsection. 14 * Sec. 15. AS 14.43.120(d), as amended by sec. 4, ch. 5, SLA 1996, is amended to read: 15 (d) Scholarship loans may not be made to a student 16 (1) for more than a total of $42,500 for undergraduate study; 17 (2) for more than a total of $47,500 for graduate study; 18 (3) for more than a combined total of $60,000 for undergraduate and 19 graduate study; 20 (4) to attend an institution, if the total amount of scholarship loans made 21 to students to attend that institution exceeds $100,000 and the default rate on those loans 22 is (A) greater than 20 percent but less than 25 percent, and the institution is unable to 23 reduce its default rate within 24 months after the rate determination; or (B) equal to or 24 greater than 25 percent for two consecutive calendar years; for purposes of this paragraph, 25 the default rate shall annually be determined by the corporation [COMMISSION] from 26 loans required to be repaid under (g) of this section on or after July 1, 1996; if a 27 scholarship loan is refused based on the provisions of this paragraph and, under a 28 subsequent default rate determination [,] an institution's default rate does not exceed the 29 limits established under this paragraph, the corporation [COMMISSION] may not refuse 30 to issue a scholarship loan to attend that institution based on the provisions of this 31 paragraph.
01 * Sec. 16. AS 14.43.120(f) is amended to read: 02 (f) Interest on a loan made under AS 14.43.100 - 14.43.160 [AS 14.43.090 - 03 14.43.160] is equal to the interest rate 04 (1) paid in each year on bonds issued by the corporation [ALASKA 05 STUDENT LOAN CORPORATION] under AS 14.42.220; and 06 (2) necessary to pay the administrative cost of the student loan program 07 that is represented by the loan. 08 * Sec. 17. AS 14.43.120(g), as amended by sec. 6, ch. 5, SLA 1996, is amended to read: 09 (g) A borrower's obligation to commence repayment of the principal and interest 10 on the loan begins six months after the borrower is no longer enrolled under (c) of this 11 section. The borrower shall repay the total amount owed in periodic installments of at 12 least $50 a month over a period of not more than 15 years from the commencement of 13 the repayment obligation. If the corporation [COMMISSION] and the borrower agree 14 to a different repayment schedule, the borrower shall repay the loan in accordance with 15 the agreement. A borrower may make payments earlier than required by this subsection 16 or the agreement. 17 * Sec. 18. AS 14.43.120(i), as amended by sec. 8, ch. 5, SLA 1996, is amended to read: 18 (i) If a loan is in default, the corporation [COMMISSION] 19 (1) shall notify the borrower that [, IF THE BORROWER HAS AN 20 OCCUPATIONAL LICENSE ISSUED UNDER AS 08, THE LICENSE MAY NOT BE 21 RENEWED UNDER AS 08.02.025 AND THAT] repayment of the remaining balance 22 is accelerated and due and that, if the borrower has an occupational license issued 23 under AS 08, the license may not be renewed under AS 08.02.025, by mailing the 24 borrower a notice at the most recent address provided to the commission by the borrower; 25 (2) may take the borrower's permanent fund dividend under 26 AS 43.23.065(b)(3) to satisfy the balance due on a defaulted loan; and 27 (3) shall provide notice of the default to the Department of Commerce and 28 Economic Development, if the loan recipient is licensed under AS 08. 29 * Sec. 19. AS 14.43.120(m), as amended by sec. 11, ch. 5, SLA 1996, is amended to read: 30 (m) In case of hardship, the corporation [COMMISSION] may extend repayment 31 of a loan for an additional period of up to five years.
01 * Sec. 20. AS 14.43.120(r) is amended to read: 02 (r) The rate of interest, time of payment of an installment of principal or interest, 03 or other loan terms [OF A SCHOLARSHIP LOAN] may be modified if required to 04 establish or maintain tax-exempt status under 26 U.S.C. 103 (Internal Revenue Code of 05 1986), as amended, for the interest on bonds issued by the corporation [ALASKA 06 STUDENT LOAN CORPORATION]. 07 * Sec. 21. AS 14.43.120(t), as amended by sec. 13, ch. 5, SLA 1996, is amended to read: 08 (t) Payment of interest under (l) of this section and forgiveness under (s) of this 09 section are subject to appropriation by the legislature. Money obtained from the sale of 10 bonds by the corporation [STUDENT LOAN CORPORATION] under AS 14.42.220 11 may not be appropriated for the payment of interest or the forgiveness of loans. 12 * Sec. 22. AS 14.43.120(u), as amended by sec. 14, ch. 5, SLA 1996, is amended to read: 13 (u) The corporation [COMMISSION] by regulation shall set a loan origination 14 fee, not to exceed five percent of the total [SCHOLARSHIP] loan amount, to be assessed 15 upon a [SCHOLARSHIP] loan that is funded from the student loan fund of the 16 corporation [ALASKA STUDENT LOAN CORPORATION]. The loan origination fee 17 shall be deducted at the time the loan is disbursed. Subject to appropriation, the loan 18 origination fees shall be deposited into an origination fee account within the student loan 19 fund of the corporation [ALASKA STUDENT LOAN CORPORATION], and 20 subsequently used by the corporation to offset losses incurred as a result of death, 21 disability, default, or bankruptcy of the borrower. 22 * Sec. 23. AS 14.43.120(v) is amended to read: 23 (v) In determining a rate of interest under (f)(2) of this section, 24 (1) the corporation [COMMISSION] shall use a method that ensures that 25 the rate of interest is as low as possible without precluding the ability of the corporation 26 [COMMISSION] to administer loans made under AS 14.43.100 - 14.43.160 27 [AS 14.43.090 - 14.43.160]; and 28 (2) the total amount charged for administrative costs of the student loan 29 program may not exceed two and one-half percent above the amount determined under 30 (f)(1) of this section. 31 * Sec. 24. AS 14.43.122(a) is amended to read:
01 (a) The corporation [COMMISSION] may offer the option of consolidating 02 into a single loan 03 (1) multiple loans made to a borrower who has received more than one 04 loan under this chapter [THE OPTION OF CONSOLIDATING THE MULTIPLE 05 LOANS INTO A SINGLE LOAN]; or 06 (2) [TO CONSOLIDATE] loans made to married borrowers if the married 07 borrowers agree to be jointly and severally liable for repayment of the consolidated loan 08 [,] regardless of the borrowers' future marital status or the death of one of the borrowers. 09 * Sec. 25. AS 14.43.125(a), as amended by sec. 15, ch. 5, SLA 1996, is amended to read: 10 (a) A person may apply for and obtain a student [SCHOLARSHIP] loan if the 11 person 12 (1) is 13 (A) enrolled as a full-time student in a career education, associate, 14 baccalaureate, or graduate degree program; 15 (B) enrolled as a half-time student in a career education, associate, 16 baccalaureate, or graduate degree program 17 (i) in the state; or 18 (ii) out of the state and is physically present in this state 19 while attending that program; or 20 (C) a graduate of a high school or the equivalent, or scheduled for 21 graduation from a high school within six months, with sufficient credits to be 22 admitted to a career education program or to an accredited college or university; 23 (2) is not delinquent or in default on a previously awarded student 24 [SCHOLARSHIP] loan; and 25 (3) is a resident of the state at the time of application for the loan; for 26 purposes of this section, a person qualifies as a resident of the state if at the time of 27 application for the loan the person 28 (A) has been physically present in the state for at least one year 29 immediately before the time of application for the loan; 30 (B) is dependent on a parent or guardian for care, the parent or 31 guardian has been present in the state for at least one year immediately before the
01 time of application for the loan, and the person has been present in the state for 02 at least one year of the immediately preceding five years, except that the 03 corporation [COMMISSION] may by a two-thirds vote, acting upon a written 04 appeal by the person, grant an exemption to the requirement that the person has 05 been present in the state for one year of the immediately preceding five years; 06 (C) has been physically present in the state for at least one year 07 immediately before the applicant was absent from the state and the absence is due 08 solely to 09 (i) serving an initial period of up to three years on active 10 duty as a member of the armed forces of the United States; 11 (ii) serving for up to three years as a full-time volunteer 12 under the Peace Corps Act; 13 (iii) serving for up to three years as a full-time volunteer 14 under the Domestic Volunteer Service Act of 1973; 15 (iv) required medical care for the applicant or the 16 applicant's immediate family; 17 (v) being a person who otherwise qualifies as a resident 18 and is accompanying a spouse who qualifies as a resident under (i) - (iv) 19 of this paragraph; 20 (vi) an absence allowed under (D)(i)-(iv) of this paragraph; 21 or 22 (D) is a dependent of a parent or guardian who has been 23 physically present in the state for at least one year immediately before the parent 24 or guardian was absent from the state and the absence is due solely to 25 (i) participating in a foreign exchange student program 26 recognized by the corporation [COMMISSION]; 27 (ii) attending a school as a full-time student; 28 (iii) full-time employment by the state; 29 (iv) being a member of or employed full-time by the 30 state's congressional delegation; 31 (v) being a person who otherwise qualifies as a resident
01 and is accompanying a spouse who qualifies as a resident under (i) - (iv) 02 of this paragraph; 03 (4) does not have a past due child support obligation established by court 04 order or by the child support enforcement division under AS 25.27.160 - 25.27.220 at the 05 time of application; and 06 (5) has not, within the previous five years, had a [SCHOLARSHIP] loan 07 discharged or written off by the corporation or the former Alaska Commission on 08 Postsecondary Education [COMMISSION] for any reason. 09 * Sec. 26. AS 14.43.125(c), as amended by sec. 16, ch. 5, SLA 1996, is amended to read: 10 (c) A person may not be awarded a scholarship loan under AS 14.43.100 - 11 14.43.160 [AS 14.43.090 - 14.43.160] if that person receives a teacher scholarship loan 12 under AS 14.43.600 - 14.43.700 for the same period of attendance. 13 * Sec. 27. AS 14.43.150(a) is amended to read: 14 (a) In a court proceeding regarding a defaulted loan under this chapter in which 15 the court has entered judgment in favor of the corporation or the former Alaska 16 Commission on Postsecondary Education [COMMISSION], the court may, on its own 17 motion or motion of the corporation [COMMISSION], after notice and an opportunity 18 for hearing, order the loan recipient to assign to the corporation [COMMISSION] that 19 portion of salary or wages due the loan recipient currently and in the future in an amount 20 sufficient to pay the amount ordered by the court to be repaid [TO THE COMMISSION]. 21 * Sec. 28. AS 14.43.160 is amended to read: 22 Sec. 14.43.160. DEFINITIONS. In AS 14.43.100 - 14.43.160, [AS 14.43.090 - 23 14.43.160] 24 (1) "career education" means a course or program in vocational-technical 25 training or education approved by the corporation that is a half-time program at least 26 12 weeks in length or a full-time program at least six weeks in length 27 [COMMISSION]; 28 (2) "federally insured" means a loan covered by the provisions of the 29 Guaranteed Student Loan Program of Title IV, Part B, of the Higher Education Act of 30 1965 (P.L. 89-329), as amended; 31 (3) "full-time student" means an undergraduate or career education student
01 who is enrolled and is in regular attendance at classes for at least 12 semester hours of 02 credit or the equivalent during the semester or a graduate student who is enrolled and is 03 in regular attendance at classes for at least nine semester hours of credit or the equivalent; 04 any combination of semester hours of credit, or the equivalent, aggregating to the requisite 05 number of semester hours and undertaken during a semester at two or more public or 06 private institutions of higher education constitutes full-time student status; 07 (4) "half-time student" means an undergraduate, graduate, or career 08 education student who during the semester is enrolled and is in regular attendance at 09 classes at one or more public or private institutions of higher education for at least a total 10 of six semester credit hours or an equivalent of six semester credit hours, and includes 11 a career education student enrolled and in regular attendance in classes for at least 15 12 hours a week; 13 (5) "school year" means the period from September 1 of one year through 14 August 31 of the following year; 15 (6) "summer term" means the period from June 1 - August 31. 16 * Sec. 29. AS 14.43.255(a) is amended to read: 17 (a) There is created a memorial scholarship revolving loan fund to be 18 administered by the corporation. The fund shall be used to provide educational 19 scholarship loans to students selected under AS 14.43.250 - 14.43.325. Repayments 20 [UNLESS THE INSTRUMENT EVIDENCING THE MEMORIAL SCHOLARSHIP 21 LOAN HAS BEEN SOLD OR ASSIGNED TO THE ALASKA STUDENT LOAN 22 CORPORATION, REPAYMENTS] of a loan shall be deposited into the memorial 23 scholarship revolving loan fund and shall be used to make new loans. 24 * Sec. 30. AS 14.43.300(g), as amended by sec. 18, ch. 5, SLA 1996, is amended to read: 25 (g) The corporation [COMMISSION] by regulation shall set a loan origination 26 fee, not to exceed five percent of the total memorial scholarship loan amount, to be 27 assessed upon a memorial scholarship loan. The loan origination fee shall be deducted 28 at the time the loan amount is disbursed. Subject to appropriation, the loan origination 29 fee shall be deposited into a origination fee account within the memorial scholarship 30 revolving loan fund, and subsequently transferred by the corporation [COMMISSION] 31 to the appropriate memorial scholarship accounts within the memorial scholarship
01 revolving loan fund to offset losses incurred due to loan debt cancellation as a result of 02 death, disability, default, or bankruptcy of the borrower [STUDENT]. 03 * Sec. 31. AS 14.43.305(i) is amended to read: 04 (i) To the extent they are not in conflict with terms and conditions under 05 AS 14.43.250 - 14.43.325, the terms and conditions of a memorial scholarship loan made 06 under AS 14.43.250(b)(5) are the same as the terms and conditions for a scholarship loan 07 under AS 14.43.100 - 14.43.160 [AS 14.43.090 - 14.43.160], except that the interest on 08 the loan is equal to five percent. 09 * Sec. 32. AS 14.43.320(b) is amended to read: 10 (b) To the extent that they are not in conflict with the provisions of AS 14.43.250 11 - 14.43.325, the provisions of AS 14.43.100 - 14.43.160 [AS 14.43.090 - 14.43.160] 12 relating to scholarship loans are applicable to loans made under AS 14.43.250 - 14.43.325. 13 * Sec. 33. AS 14.43.405(b) is amended to read: 14 (b) To the extent that they are not in conflict with the provisions of AS 14.43.400 15 - 14.43.405, the provisions of AS 14.43.100 - 14.43.160 [AS 14.43.090 - 14.43.160] 16 relating to student financial aid are applicable to the grants made under AS 14.43.400 - 17 14.43.500. 18 * Sec. 34. AS 14.43.410 is amended to read: 19 Sec. 14.43.410. DISTRIBUTION OF FUNDS. The funds appropriated for the 20 educational incentive grant program shall be allocated to eligible students in accordance 21 with the provisions of the federal state student incentive grant program and regulations 22 adopted under AS 14.42.200 and AS 14.43.405 [AS 14.43.105 AND 14.43.405]. 23 * Sec. 35. AS 14.43.415 is amended to read: 24 Sec. 14.43.415. ELIGIBILITY; PRIORITY. (a) A student may apply for an 25 educational incentive grant if the student 26 (1) is a resident of Alaska; 27 (2) is [EITHER] 28 (A) enrolled as a full-time undergraduate student in a degree 29 program in an accredited postsecondary educational institution; or 30 (B) eligible to be admitted to an accredited postsecondary 31 educational institution; and
01 (3) establishes financial need in accordance with standards for determining 02 financial need adopted by the corporation [COMMISSION] under 20 U.S.C. 1070c-2. 03 (b) The corporation [COMMISSION] shall adopt regulations to [, BY 04 REGULATION,] establish a system of priority in the selection of recipients of grants 05 under AS 14.43.400 - 14.43.500 under which students from "low income" families or 06 whose incomes are considered "low income" shall be given preference in the award of 07 the educational incentive grants. 08 * Sec. 36. AS 14.43.620(a) is amended to read: 09 (a) The [THERE IS CREATED A] teacher scholarship revolving loan account 10 is created within the student loan fund (AS 14.42.210). The account [FUND] shall be 11 used to make scholarship loans to students selected under AS 14.43.600 - 14.43.700. 12 Repayments [UNLESS THE INSTRUMENT EVIDENCING THE TEACHER 13 SCHOLARSHIP LOAN HAS BEEN SOLD OR ASSIGNED TO THE ALASKA 14 STUDENT LOAN CORPORATION, REPAYMENTS] of principal and interest on a 15 teacher scholarship loan shall be paid into the teacher scholarship revolving loan account 16 [FUND] and shall be used to make new teacher scholarship loans. If estimated funds 17 available are inadequate to fully fund estimated teacher scholarship loans for any fiscal 18 year, additional funding from the general fund may be requested and appropriated for that 19 year. 20 * Sec. 37. AS 14.43.630(a) is amended to read: 21 (a) [THE TEACHER SCHOLARSHIP LOAN PROGRAM SHALL BE 22 ADMINISTERED BY THE COMMISSION IN ACCORDANCE WITH 23 REGULATIONS ADOPTED BY THE COMMISSION.] The corporation 24 [COMMISSION] shall 25 (1) annually allocate the [LOAN AWARDS] available [FOR] teacher 26 scholarship loans awards [ANNUALLY] to local school boards giving a preference to 27 rural school districts; and 28 (2) [DEVELOP AND] distribute to the local school boards an application 29 form for teacher scholarship loans; [THE FORM MUST INCLUDE A REQUIREMENT 30 THAT] the applicant must provide [SUPPLY] a high school academic transcript and a 31 statement of intent to enter a teaching career at the elementary or secondary school level
01 in the state. 02 * Sec. 38. AS 14.43.650(a) is amended to read: 03 (a) To be eligible for a teacher scholarship loan, a student must 04 (1) be a graduate of a public or private high school in the state [,] with 05 sufficient credits to be admitted to an accredited college or university; 06 (2) be enrolled in or show evidence of intent to enroll in a degree 07 program directed at a teaching career at the elementary or secondary school level; 08 (3) meet the conditions set by the student's local school board with 09 respect to the district's requirements for teachers in particular subject areas; 10 (4) submit to the local school board an application on a form provided 11 by the corporation [COMMISSION] under AS 14.43.630(a)(2); an application may be 12 submitted six months before graduation from high school; and 13 (5) not have a past due child support obligation established by court order 14 or by the child support enforcement division under AS 25.27.160 - 25.27.220 at the time 15 of application. 16 * Sec. 39. AS 14.43.650(c), as amended by sec. 20, ch. 5, SLA 1996, is amended to read: 17 (c) A student may not be awarded a teacher scholarship loan under AS 14.43.600 18 - 14.43.700 if the student receives a student [SCHOLARSHIP] loan under AS 14.43.100 19 - 14.43.160 [AS 14.43.090 - 14.43.160] for the same period of attendance. 20 * Sec. 40. AS 14.43.720(a) is amended to read: 21 (a) The family education loan account is created within the student 22 [SCHOLARSHIP REVOLVING] loan fund (AS 14.42.210 [AS 14.43.090]). The account 23 shall be used to make family education loans to families selected under AS 14.43.710 - 24 14.43.790, to pay the costs of collecting family education loans that are in default if those 25 costs are not recovered from the family, and to pay the costs of administering the account. 26 Repayments [UNLESS THE INSTRUMENT EVIDENCING THE FAMILY 27 EDUCATION LOAN HAS BEEN SOLD OR ASSIGNED TO THE ALASKA 28 STUDENT LOAN CORPORATION, REPAYMENTS] of principal and interest on family 29 education loans shall be paid into the family education loan account. If estimated funds 30 available from family education loan repayments are inadequate to fully fund estimated 31 family education loans in a fiscal year, additional funding from the general fund may be
01 requested and appropriated for that year. 02 * Sec. 41. AS 14.43.740(d) is amended to read: 03 (d) A borrower's obligation to commence repayment [REPAYMENT] of the 04 principal and interest on a family education loan [MADE UNDER AS 14.43.710 - 05 14.43.790] begins on the first of the month immediately following loan disbursement. 06 The loan may be cancelled without prejudice at any time before actual disbursement. The 07 borrower shall repay [LOAN SHALL PROVIDE FOR REPAYMENT OF] the total 08 amount owed in periodic installments over a period of [IN] not more than 10 years from 09 the commencement of the repayment obligation. If the corporation [COMMISSION] 10 and the borrower agree to a different repayment schedule, the borrower shall repay the 11 loan in accordance with the agreement. The borrower may make payments earlier 12 than required by this section or the agreement. 13 * Sec. 42. AS 14.43.990 is repealed and reenacted to read: 14 Sec. 14.43.990. DEFINITION. In this chapter, "corporation" means the Alaska 15 Student Loan Corporation. 16 * Sec. 43. AS 14.44.035 is amended to read: 17 Sec. 14.44.035. ADMINISTRATION. The Alaska Student Loan Corporation 18 [COMMISSION ON POSTSECONDARY EDUCATION] shall administer the state's 19 participation in the Western Regional Higher Education Compact. 20 * Sec. 44. AS 14.48 is amended by adding a new section to read: 21 Sec. 14.48.035. ALASKA COMMISSION ON POSTSECONDARY 22 EDUCATION. (a) The Alaska Commission on Postsecondary Education is created in 23 the department consisting of the commissioner of revenue, the commissioner of 24 administration, a person representing the department appointed by the governor, and four 25 public members appointed by the governor. The public members are subject to 26 confirmation by the legislature and serve at the pleasure of the governor for four-year 27 staggered terms. 28 (b) Members of the commission serve without compensation, but the members 29 who are not state employees are entitled to per diem and travel expenses authorized for 30 boards and commissions under AS 39.20.180. 31 (c) The commission shall elect a chair from among its membership at its annual
01 meeting each year. A majority of the members constitute a quorum for organizing the 02 commission, conducting its business, and exercising the powers of the commission. 03 (d) The employees of the department shall serve as staff to the commission. 04 * Sec. 45. AS 14.48.040 is amended to read: 05 Sec. 14.48.040. COMMISSION TO ADMINISTER CHAPTER. The Alaska 06 Commission on Postsecondary Education shall administer this chapter [AND MAY HIRE 07 NECESSARY PERSONNEL]. The commission may obtain from departments, 08 commissions, and other state agencies information and assistance needed to carry out the 09 provisions of this chapter. 10 * Sec. 46. AS 14.48.050 is amended by adding new subsections to read: 11 (b) The commission has the following advisory functions to the governing boards 12 of higher education institutions in this state, the governor, the legislature, and other 13 appropriate state and federal officials: 14 (1) coordinate the development or the start of comprehensive plans for the 15 orderly systematic growth of public and private postsecondary education, including 16 community colleges and occupational education, and submit recommendations on the need 17 for, and location of, new facilities and programs; and 18 (2) advise as to the functions and purposes of the public and private 19 colleges and universities in the state and counsel as to the programs appropriate to each. 20 (c) The commission may 21 (1) require the institutions of public and private higher education and other 22 institutions of postsecondary education in the state to submit data on costs, selection and 23 retention of students, enrollments, plant capacities and use, and other matters pertinent to 24 effective planning and coordination, and shall furnish information concerning these 25 matters to the governor, the legislature, and other state and federal agencies as requested; 26 (2) establish task forces, committees, or subcommittees, not necessarily 27 consisting of commission members or employees, to advise and assist the commission in 28 carrying out its functions assigned by this chapter and federal statute; the commission may 29 contract with, or use, existing institutions of higher education or other individuals or 30 organizations to make studies, conduct surveys, submit recommendations, or otherwise 31 contribute to the work of the commission.
01 * Sec. 47. AS 14.48.090 is repealed and reenacted to read: 02 Sec. 14.48.090. FEES. The commission shall adopt regulations that establish the 03 amount and manner of payment of fees for applications, authorizations, permits, and 04 renewals under this chapter. 05 * Sec. 48. AS 14.48.120 is amended by adding a new subsection to read: 06 (d) In addition to the sanctions imposed under (a) of this section, the commission 07 may assess a civil fine, not to exceed $5,000, for costs of investigating and adjudicating 08 a matter under this chapter. 09 * Sec. 49. AS 39.05.100(a) is amended to read: 10 (a) A person appointed to a board or commission of the state government shall 11 be and have been before the last general election, (1) a registered voter in the state, if the 12 appointment is made at large or (2) a registered voter from the judicial district, if the 13 appointment is made from a specific judicial district. The student member of the Board 14 of Regents of the University of Alaska appointed under AS 14.40.150(b), the student 15 member of the Alaska Student Loan Corporation [COMMISSION ON 16 POSTSECONDARY EDUCATION] appointed under AS 14.42.120 [AS 14.42.015(e)], 17 and a member of the Alaska Human Relations Commission appointed under 18 AS 44.19.600, are exempt from the requirement of this subsection if the member was not 19 old enough to be a registered voter in the last general election. 20 * Sec. 50. AS 39.25.110(11) is amended to read: 21 (11) the officers and employees of the following boards, commissions, and 22 authorities: 23 (A) [REPEALED 24 (B)] Alaska Permanent Fund Corporation; 25 (B) [(C)] Alaska Industrial Development and Export Authority; 26 (C) [(D)] Alaska Commercial Fisheries Entry Commission; 27 (D) [(E)] Alaska Student Loan Corporation [COMMISSION ON 28 POSTSECONDARY EDUCATION]; 29 (E) [(F)] Alaska Aerospace Development Corporation; 30 * Sec. 51. AS 39.50.200(b)(32) is amended to read: 31 (32) Alaska Commission on Postsecondary Education (AS 14.48.035)
01 [(AS 14.42.015)]; 02 * Sec. 52. AS 39.50.200(b) is amended by adding a new paragraph to read: 03 (56) Alaska Student Loan Corporation (AS 14.42.100). 04 * Sec. 53. AS 43.23.067(a) is amended to read: 05 (a) AS 09.38 does not apply to permanent fund dividends taken under 06 AS 14.43.120(i). Notwithstanding AS 09.35, the Alaska Student Loan Corporation may 07 take a permanent fund dividend [EXECUTION ON A CLAIM] under AS 14.43.120(i) 08 [IS ACCOMPLISHED] by delivering a certified claim to the department containing the 09 following information: 10 (1) the name and social security number of the individual whose dividend 11 is being claimed; 12 (2) the amount the individual owes on the scholarship loan; and 13 (3) a statement that 14 (A) a [THE] debt for at least the amount claimed has not been 15 contested, or, if contested, that the issue has been resolved in favor of the Alaska 16 Student Loan Corporation [COMMISSION ON POSTSECONDARY 17 EDUCATION]; and 18 (B) if the debt has been contested and resolved in favor of the 19 Alaska Student Loan Corporation [COMMISSION ON POSTSECONDARY 20 EDUCATION], no appeal is pending, the time limit for filing an appeal has 21 expired, or the appeal has been resolved in favor of the commission. 22 * Sec. 54. AS 43.23.067(b) is amended to read: 23 (b) The Alaska Student Loan Corporation [COMMISSION ON 24 POSTSECONDARY EDUCATION] shall notify the individual of a claim under (a) of 25 this section. The notice shall be sent to the address provided in the individual's permanent 26 fund dividend application and must provide the following information: 27 (1) the amount of the claim; and 28 (2) notice that the amount of the permanent fund dividend that does not 29 exceed the amount of the claim shall be paid to the Alaska Student Loan Corporation 30 [COMMISSION ON POSTSECONDARY EDUCATION] unless the commission releases 31 the claim or the individual requests a hearing within 30 days after the date the notice is
01 sent by the commission. 02 * Sec. 55. AS 14.42.010, 14.42.015, 14.42.020, 14.42.025, 14.42.030, 14.42.035, 14.42.040, 03 14.42.045, 14.42.050, 14.42.055, 14.42.170, 14.42.200(18), 14.42.210(c); AS 14.43.090, 04 14.43.105, 14.43.255(c), 14.43.320(a), 14.43.405(a), 14.43.620(b), and 14.43.720(b) are repealed. 05 * Sec. 56. TRANSITIONAL PROVISION: TEMPORARY FEE SCHEDULE FOR 06 CERTAIN ACTIVITIES RELATED TO POSTSECONDARY EDUCATIONAL INSTITUTIONS 07 AND AGENTS. Until a new fee schedule is adopted by regulation to implement the changes 08 made by sec. 47 of this Act, the commission may charge the fees set out in the following 09 schedule for an authorization to operate an institution in this state and for an agent's permit related 10 to activities for postsecondary educational institutions: 11 (1) authorization to operate $100; 12 (2) renewal of authorization to operate $100; 13 (3) an agent's permit $ 50; 14 (4) renewal of an agent's permit $ 50. 15 * Sec. 57. TRANSITION. (a) The terms of the members of the Alaska Commission on 16 Postsecondary Education terminate on the effective date of sec. 1 of this Act. The governor may 17 appoint to the Alaska Student Loan Corporation a person who has served on the Alaska 18 Commission on Postsecondary Education and who meets the qualifications of AS 14.42.120, as 19 repealed and reenacted by this Act. The terms of public persons initially appointed to the Alaska 20 Student Loan Corporation must be set as provided in AS 39.05.055. 21 (b) Litigation, hearings, investigations, and other proceedings pending under a law 22 amended or repealed by this Act, or in connection with functions transferred by this Act, continue 23 in effect and may be continued and completed notwithstanding a transfer or amendment or repeal 24 provided for in this Act. 25 (c) Regulations adopted by the Alaska Commission on Postsecondary Education under 26 authority of AS 14.43 remain in effect until regulations adopted by the Alaska Student Loan 27 Corporation under that chapter, as amended by this Act, take effect. The Alaska Student Loan 28 Corporation may implement and enforce commission regulations until the regulations of the 29 corporation take effect. Notwithstanding sec. 59 of this Act, the Alaska Student Loan Corporation 30 may immediately proceed to adopt regulations necessary to implement the changes made by this 31 Act to AS 14.43. The regulations take effect under AS 44.62 (Administrative Procedure Act),
01 but not before the effective date of sec. 1 of this Act. 02 (d) Regulations adopted under the authority of AS 14.48 by the Alaska Commission on 03 Postsecondary Education, as constituted before July 1, 1996, remain in effect. Notwithstanding 04 sec. 59 of this Act, the commission may immediately proceed to adopt regulations necessary to 05 implement the changes made by this Act to AS 14.48. The regulations take effect under 06 AS 44.62 (Administrative Procedure Act), but not before the effective date of sec. 1 of this Act. 07 (e) Contracts, rights, liabilities, notes, or other obligations created by or under a section 08 of AS 14.43 amended or repealed by this Act, and in effect on June 30, 1996, remain in effect 09 notwithstanding this Act, with all contracts, rights, liabilities, notes, or other obligations created 10 by or under a section of AS 14.43 amended or repealed by this Act becoming contracts, rights, 11 liabilities, notes, or other obligations of the Alaska Student Loan Corporation. 12 (f) Records, equipment, appropriations, and other property of agencies of the state whose 13 functions are transferred under this Act shall be transferred to implement the provisions of this 14 Act. 15 (g) An individual who is an employee of the Alaska Commission on Postsecondary 16 Education on June 30, 1996, becomes an employee of the Alaska Student Loan Corporation on 17 July 1, 1996. 18 (h) Employees of the Alaska Student Loan Corporation who were, on June 30, 1996, 19 employees of the Alaska Commission on Postsecondary Education, are no longer eligible to 20 accrue credited service under AS 14.25. 21 * Sec. 58. Section 57(c) and (d) take effect immediately under AS 01.10.070(c). 22 * Sec. 59. Except as provided in sec. 58 of this Act, this Act takes effect July 1, 1996.