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HB 305: "An Act prohibiting certain state employment, a student loan, or a permanent fund dividend for a person who fails to register for the military selective service; and providing for an effective date."

00 HOUSE BILL NO. 305 01 "An Act prohibiting certain state employment, a student loan, or a permanent fund 02 dividend for a person who fails to register for the military selective service; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.43.125(a) is amended to read: 06 (a) A person is eligible for a loan if the person 07 (1) is 08 (A) enrolled as a full-time student in a career education, 09 associate, baccalaureate, or graduate degree program; 10 (B) enrolled as a half-time student in a career education, 11 associate, baccalaureate, or graduate degree program 12 (i) in the state; or 13 (ii) out of the state and is physically present in this state

01 while attending that program; or 02 (C) a graduate of a high school or the equivalent, or scheduled 03 for graduation from a high school within six months, who, at the time of loan 04 disbursement, will be enrolled in compliance with (A) or (B) of this paragraph; 05 (2) is not delinquent and has never been in default on a loan previously 06 awarded by the commission; 07 (3) is a resident of the state at the time of application for the loan; for 08 purposes of this section, a person qualifies as a resident of the state if at the time of 09 application for the loan the person 10 (A) has been physically present in the state for at least one year 11 immediately before the time of application for the loan with the intent to 12 remain indefinitely; 13 (B) is dependent on a parent or guardian for care, the parent or 14 guardian has been present in the state for at least one year immediately before 15 the time of application for the loan with the intent to remain indefinitely, and 16 the person has been present in the state for at least one year of the immediately 17 preceding five years except that the commission may by a two-thirds vote, 18 acting upon a written appeal by the person, grant an exemption to the 19 requirement that the person has been present in the state for one year of the 20 immediately preceding five years; 21 (C) has been physically present in the state for at least one year 22 immediately before the applicant was absent from the state, the person intends 23 to return permanently to the state, and the absence is due solely to 24 (i) serving an initial period of up to three years on 25 active duty as a member of the armed forces of the United States; 26 (ii) serving for up to three years as a full-time volunteer 27 under the Peace Corps Act; 28 (iii) serving for up to three years as a full-time volunteer 29 under the Domestic Volunteer Service Act of 1973; 30 (iv) required medical care for the applicant or the 31 applicant's immediate family;

01 (v) being a person who otherwise qualifies as a resident 02 and is accompanying a spouse who qualifies as a resident under (i) - 03 (iv) of this paragraph; 04 (vi) an absence allowed under (D)(i) - (iv) of this 05 paragraph; or 06 (D) is a dependent of a parent or guardian who has been 07 physically present in the state for at least one year immediately before the 08 parent or guardian was absent from the state, the parent or guardian intends to 09 return permanently to the state, and the absence is due solely to 10 (i) participating in a foreign exchange student program 11 recognized by the commission; 12 (ii) attending a school as a full-time student; 13 (iii) full-time employment by the state; 14 (iv) being a member of or employed full-time by the 15 state's congressional delegation; 16 (v) being a person who otherwise qualifies as a resident 17 and is accompanying a spouse who qualifies as a resident under (i) - 18 (iv) of this paragraph; 19 (4) does not have a past due child support obligation established by 20 court order or by the child support enforcement division under AS 25.27.160 - 21 25.27.220 at the time of application or loan disbursement; 22 (5) has not, within the previous five years, had a loan discharged or 23 written off by the commission for any reason; 24 (6) does not have a status, at the time of the application for a loan or 25 disbursement of loan funds, that would prevent the person from repaying the loan as it 26 becomes due; 27 (7) has not within the previous seven years defaulted on another loan 28 made to the person by a lending entity unless the person can show good faith efforts to 29 repay the loan and extraordinary circumstances that led to the default; [AND] 30 (8) does not have a credit history, at the time of application for a loan, 31 that demonstrates chronic inability or unwillingness to pay an extension of credit or

01 loan as it becomes due; and 02 (9) has complied with the military selective service registration 03 requirements imposed under 50 U.S.C. App. 453 (Military Selective Service Act), 04 if those requirements were applicable to the person. 05 * Sec. 2. AS 14.43.750(a) is amended to read: 06 (a) A person may apply for and obtain a family education loan on behalf of a 07 family member if 08 (1) the borrower 09 (A) is a resident of the state at the time of application for the 10 loan; for purposes of this paragraph, a borrower qualifies as a resident of the 11 state if the borrower has been physically present in the state for at least one 12 year immediately before the time of application for the loan with the intent to 13 remain indefinitely or, if not physically present in the state, the borrower has 14 not declared or established residency in another state, intends to return 15 permanently to the state, and the absence meets the requirements imposed 16 under AS 14.43.125(a)(3)(C)(i) - (vi); 17 (B) satisfies the requirements of AS 14.43.125(a)(6) - (9) 18 [AS 14.43.125(a)(6) - (8)]; 19 (2) the family member 20 (A) is enrolled as a full-time student in a career education, 21 associate, baccalaureate, or graduate degree program; or 22 (B) is a graduate of a high school or the equivalent, or 23 scheduled for graduation from a high school within six months, who, at the 24 time of loan disbursement, will be enrolled in compliance with (A) of this 25 paragraph; and 26 (3) neither the borrower nor the family member 27 (A) is delinquent or has ever been in default on a loan 28 previously awarded by the commission; 29 (B) is past due on a child support obligation established by 30 court order or by the child support enforcement division under AS 25.27.160 - 31 25.27.220 at the time of application or loan disbursement;

01 (C) has, within the previous five years, had a loan discharged 02 or written off by the commission for any reason. 03 * Sec. 3. AS 39.25.160 is amended by adding a new subsection to read: 04 (k) A person may not be employed in the classified, partially exempt, or 05 exempt service unless the person has complied with the military selective service 06 registration requirements imposed under 50 U.S.C. App. 453 (Military Selective 07 Service Act), if those requirements were applicable to the person. Notwithstanding 08 AS 39.25.110, this subsection applies to employees in the exempt service except 09 (1) a justice, a judge, or a magistrate; 10 (2) the governor or the lieutenant governor; 11 (3) a member of the legislature; 12 (4) a person appointed under art. III, sec. 25, or art III, sec. 26, 13 Constitution of the State of Alaska. 14 * Sec. 4. AS 43.23.005(a) is amended to read: 15 (a) An individual is eligible to receive one permanent fund dividend each year 16 in an amount to be determined under AS 43.23.025 if the individual 17 (1) applies to the department; 18 (2) is a state resident on the date of application; 19 (3) was a state resident during the entire qualifying year; 20 (4) has been physically present in the state for at least 72 consecutive 21 hours at some time during the prior two years before the current dividend year; 22 (5) is 23 (A) a citizen of the United States; 24 (B) an alien lawfully admitted for permanent residence in the 25 United States; 26 (C) an alien with refugee status under federal law; or 27 (D) an alien that has been granted asylum under federal law; 28 [AND] 29 (6) was, at all times during the qualifying year, physically present in 30 the state or, if absent, was absent only as allowed in AS 43.23.008; and 31 (7) was in compliance during the qualifying year with the military

01 selective service registration requirements imposed under 50 U.S.C. App. 453 02 (Military Selective Service Act), if those requirements were applicable to the 03 individual. 04 * Sec. 5. APPLICABILITY. This Act applies to a person who seeks employment with the 05 state, applies for a student loan or family education loan under AS 14.43, or applies for a 06 permanent fund dividend under AS 43.23 on or after the effective date of this Act. 07 * Sec. 6. This Act takes effect January 1, 2003.