SB 307: "An Act relating to the Alaska teacher recruitment loan assumption program; and providing for an effective date."
00 SENATE BILL NO. 307 01 "An Act relating to the Alaska teacher recruitment loan assumption program; and 02 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 teachers 07 in the public elementary and secondary schools exists in this state. 08 (b) The purpose of this Act is to establish the Alaska teacher recruitment loan 09 assumption program to provide financial incentives through the assumption, in whole or part, 10 by the state of education loans for newly hired teachers in the public elementary and 11 secondary schools of the state to encourage eligible teachers to pursue a career in classroom 12 teaching in those schools. 13 * Sec. 2. AS 14.07.170 is amended by adding a new subsection to read: 14 (c) The board shall establish standards for the Alaska teacher recruitment loan
01 assumption program under AS 14.43.530 - 14.43.590, certify eligible applicants under 02 that program, and perform other duties assigned to the board under the program, 03 including the adoption of necessary regulations. 04 * Sec. 3. AS 14.42.030(b) is amended to read: 05 (b) The commission shall 06 (1) administer the financial aid and interstate education compact 07 programs under AS 14.43.091 - 14.43.920 and 14.43.990, and AS 14.44; 08 (2) administer the provisions of AS 14.48 concerning regulation of 09 postsecondary educational institutions; 10 (3) resolve disputes under a consortium or other cooperative agreement 11 between institutions of public and private higher education in the state; [AND] 12 (4) serve as the state agency required under 20 U.S.C. 1001 - 1155; 13 and 14 (5) perform duties assigned under AS 14.43.530 - 14.43.590 15 (Alaska teacher recruitment loan assumption program). 16 * Sec. 4. AS 14.42.040 is amended by adding a new subsection to read: 17 (c) The executive director of the commission shall administer the Alaska 18 teacher recruitment loan assumption program under AS 14.43.530 - 14.43.590 in 19 accordance with standards set by the commission and by the board. 20 * Sec. 5. AS 14.42.295(a) is amended to read: 21 (a) The board may elect to pay the state a return of contributed capital, or a 22 dividend, for each base fiscal year that the corporation's net income equals or exceeds 23 $2,000,000. The payment may not be less than 10 percent nor more than 35 percent, 24 as approved by the board, of the corporation's net income for the base fiscal year, and 25 is subject to the provisions of any applicable bond indentures of the corporation. If a 26 payment is authorized under this section, payment must be made available by the 27 corporation before the end of the fiscal year in which payment has been authorized. 28 The corporation shall notify the commissioner of revenue when the amount of the 29 payment authorized under this section is available for appropriation. The money 30 made available under this subsection may be appropriated for the Alaska teacher 31 recruitment loan assumption program under AS 14.43.530 - 14.43.590 or for any
01 other public purpose. 02 * Sec. 6. AS 14.43 is amended by adding new sections to read: 03 Article 6B. Alaska Teacher Recruitment Loan Assumption Program. 04 Sec. 14.43.530. Program Established. (a) There is established the Alaska 05 teacher recruitment loan assumption program to provide financial incentives for 06 qualified teachers to pursue a career in classroom teaching in the public elementary 07 and secondary schools in this state through the assumption of education loans to 08 become a teacher. 09 (b) The program is not a financial obligation of the corporation. 10 Sec. 14.43.540. Alaska teacher recruitment loan assumption program 11 account. (a) The Alaska teacher recruitment loan assumption program account is 12 created in the general fund. The account shall be used to provide financial awards for 13 the assumption of education loans under the program, to pay the cost of collecting 14 financial awards improperly received if the costs are not recovered from a 15 noncompliant teacher, and to pay for the costs of administering the program. 16 (b) The account includes money that the legislature appropriates from the 17 corporation's return of contributed capital or dividend to the state under AS 14.42.295 18 and the interest and earnings on money in the account. If estimated money available is 19 inadequate to finance the requests from eligible teachers under this program for a 20 fiscal year, additional money may be requested from the general fund and appropriated 21 to the account for the program. 22 Sec. 14.43.550. Administration. (a) The Alaska teacher recruitment loan 23 assumption program shall be administered by the executive director of the commission 24 using 25 (1) the eligibility and other criteria of the program established by the 26 board under AS 14.07.170(c); and 27 (2) the financial management standards for proper administration of 28 the Alaska teacher recruitment loan assumption program account as established by the 29 commission. 30 (b) After consultation with the board, the commission may adopt regulations 31 to carry out its duties and the executive director's duties under the program.
01 Sec. 14.43.560. Eligibility criteria. (a) The board shall establish in 02 regulation the eligibility criteria and certification procedures for the program. The 03 criteria established must include the following: 04 (1) the applicant was first hired as a classroom teacher by a district in 05 this state on or after July 1, 2002; 06 (2) the applicant has the required certificates and endorsements to 07 lawfully teach in the subject area in the public schools of this state; 08 (3) the applicant shall agree to fulfill any requirement of the program, 09 including any required completion of a length of classroom teaching in a district; 10 (4) the applicant has outstanding teacher education loans from a 11 recognized entity to be assumed under the program; 12 (5) if the applicant does not fulfill obligations under the program, the 13 applicant shall repay the loan assumption and may not receive further loan 14 assumptions under the program. 15 (b) The board shall distribute information regarding the program 16 (1) to districts in the state; and 17 (2) to others upon request. 18 Sec. 14.43.570. Conditions and limitations on assumption payments. (a) 19 The total amount of financial awards for assumption of educational loans may not 20 exceed $10,000 in a lifetime for a teacher. 21 (b) A financial award must be conditioned on the availability of money for the 22 program. The executive director shall monitor the outstanding financial awards made 23 under the program to ensure the adequacy of the balance of the account to meet 24 program needs. If the executive director finds that the balance of the account is 25 insufficient to pay for existing awards and incur additional obligations to new 26 applicants, the executive director shall advise the commission and the board. Until the 27 commission and the board determine the account is sufficient to incur additional 28 obligations, the executive director shall 29 (1) prorate the money available in the account among all existing 30 award recipients; and 31 (2) suspend the acceptance of new applications and the processing of
01 pending applications under the program. 02 (c) The provisions of AS 14.43.920 apply to the repayment of a loan 03 assumption under the program. 04 Sec. 14.43.590. Definitions. In AS 14.43.530 - 14.43.590, unless the context 05 otherwise requires, 06 (1) "account" means the Alaska teacher recruitment loan assumption 07 program account established in AS 14.43.540; 08 (2) "district" has the meaning given in AS 14.17.990; 09 (3) "executive director" means the executive director of the 10 commission; 11 (4) "program" means the Alaska teacher recruitment loan assumption 12 program. 13 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 TRANSITION: REGULATIONS. Notwithstanding sec. 9 of this Act, the state Board 16 of Education and Early Development and the Alaska Commission on Postsecondary 17 Education may immediately proceed to adopt regulations necessary to implement their 18 respective duties under this Act. The regulations take effect under AS 44.62 (Administrative 19 Procedure Act), but not before July 1, 2002. 20 * Sec. 8. Section 7 of this Act takes effect immediately under AS 01.10.070(c) 21 * Sec. 9. Except as provided in sec. 8, this Act takes effect July 1, 2002.