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CSHB 404(RLS): "An Act relating to the Alaska Commission on Postsecondary Education; relating to the Alaska Student Loan Corporation; relating to bonds of the corporation; relating to loan and grant programs of the commission; relating to an exemption from the State Procurement Code regarding certain contracts of the commission or corporation; making conforming changes; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 404(RLS) 01 "An Act relating to the Alaska Commission on Postsecondary Education; relating to the 02 Alaska Student Loan Corporation; relating to bonds of the corporation; relating to loan 03 and grant programs of the commission; relating to an exemption from the State 04 Procurement Code regarding certain contracts of the commission or corporation; 05 making conforming changes; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 14.42.030(e) is amended to read: 08 (e) The commission may 09 (1) adopt regulations under AS 44.62 (Administrative Procedure Act) 10 to 11 (A) carry out the purposes of 12 (i) AS 14.43.091 - 14.43.750, 14.43.990, AS 14.44, and 13 AS 14.48; and

01 (ii) AS 14.43.910 and 14.43.920 as they relate to the 02 purposes of AS 14.43.091 - 14.43.750, 14.43.990, AS 14.44, and 03 AS 14.48; [AND] 04 (B) ensure compliance with the requirements imposed by state 05 and federal statutes and regulations governing the guaranty, insurance, 06 purchase, or other dealings in eligible loans by federal agencies, 07 instrumentalities, or corporations; and 08 (C) establish standards for the 09 (i) administration of hearings conducted under 10 AS 14.43.153; and 11 (ii) administrative enforcement of collection orders 12 under AS 14.43.151 - 14.43.155; 13 (2) delegate to the executive director of the commission or a 14 subcommittee of the commission any duty imposed on or power granted to the 15 commission by this chapter, AS 14.43, AS 14.44, or AS 14.48, except its power to 16 adopt regulations and its duty to consider appeals under AS 14.43.100(b) and 17 AS 14.48.120; 18 (3) establish task forces, committees, or subcommittees, not 19 necessarily consisting of commission members, to advise and assist the commission in 20 carrying out its functions; 21 (4) contract with or use existing institutions of postsecondary 22 education or other individuals or organizations to make studies, conduct surveys, 23 submit recommendations, or otherwise contribute to the work of the commission; 24 (5) establish fees for the review of an out-of-state institution that 25 (A) requests approval for participation in the programs under 26 AS 14.43.091 - 14.43.750, 14.43.990, and AS 14.44; and 27 (B) is not accredited by a national or regional accreditation 28 association recognized by the Council for Higher Education Accreditation; and 29 (6) collect all fees and costs incurred in collection of the amount owed 30 on a loan or repayment obligation if the loan or repayment obligation becomes 31 delinquent or in default; in this paragraph, fees and costs include attorney fees, court

01 costs, and collection fees charged by a collection agency. 02 * Sec. 2. AS 14.42.210(a) is amended to read: 03 (a) The education loan fund is established in the corporation. The education 04 loan fund is a trust fund to be used to carry out the purposes of AS 14.42.100 - 05 14.42.990, AS 14.43.091 - 14.43.175, 14.43.400 - 14.43.420, 14.43.600 - 14.43.700, 06 14.43.710 - 14.43.750, 14.43.990, and AS 14.44.025. The fund consists of money or 07 assets appropriated or transferred to the corporation for the fund and money or assets 08 deposited in it by the corporation. The corporation may establish separate accounts in 09 the fund. 10 * Sec. 3. AS 14.42.210(b) is amended to read: 11 (b) Money and other assets of the education loan fund may be used to 12 (1) secure bonds of the corporation; 13 (2) pay the costs of administration of the fund; 14 (3) invest in education loans and investments under AS 37.10.071; 15 (4) finance programs approved under AS 14.43.091 - 14.43.175, 16 14.43.400 - 14.43.420, 14.43.600 - 14.43.700, 14.43.710 - 14.43.750, or 17 AS 14.44.040; and 18 (5) pay the costs of administering and collecting the loans and 19 repayment obligations under the financial aid programs listed in (4) of this subsection. 20 * Sec. 4. AS 14.42.220(a) is amended to read: 21 (a) The [SUBJECT TO (f) OF THIS SECTION, THE] corporation may 22 borrow money and may issue bonds, on which the principal and interest are payable 23 from its income and receipts or other assets or a designated part or parts of them. The 24 corporation may use the proceeds of its bonds for any purposes that the 25 corporation considers appropriate, including providing money to 26 (1) make or purchase education loans; 27 (2) finance programs identified in AS 14.42.210; 28 (3) finance projects of the state as those projects may be identified 29 by law; and 30 (4) pay for any other purpose or program of the corporation that 31 is authorized in AS 14.42.100 - 14.42.310.

01 * Sec. 5. AS 14.42.220 is amended by adding a new subsection to read: 02 (g) The corporation may not issue bonds to finance projects under (a)(3) of 03 this section in an aggregate amount that exceeds $200,000,000. The corporation may 04 issue the bonds in a single issuance or in several issuances, without limitation as to the 05 number of issuances or timing, except that bonds may not be issued to finance projects 06 under (a)(3) of this section before January 1, 2005, or after December 31, 2008. 07 * Sec. 6. AS 14.43.120(u) is amended to read: 08 (u) The corporation [COMMISSION] by regulation shall set a loan 09 origination fee, not to exceed five percent of the total education loan amount, to be 10 assessed upon an education loan that is funded from the education loan fund of the 11 corporation [ALASKA STUDENT LOAN CORPORATION]. The loan origination 12 fee shall be deducted by the commission at the time the loan is disbursed. The 13 [SUBJECT TO APPROPRIATION, THE] loan origination fees shall be deposited into 14 an origination fee account within the education loan fund of the corporation 15 [ALASKA STUDENT LOAN CORPORATION], and subsequently used by the 16 corporation to offset losses incurred as a result of death, disability, default, or 17 bankruptcy of the borrower. 18 * Sec. 7. AS 14.43.122(a) is amended to read: 19 (a) The commission may offer 20 (1) a borrower who has received more than one education loan 21 [UNDER AS 14.43.091 - 14.43.160] the option of consolidating the multiple loans 22 into a single loan; or 23 (2) to consolidate education loans made [UNDER AS 14.43.091 - 24 14.43.160] to married borrowers if the married borrowers agree to be jointly and 25 severally liable for repayment of the consolidated loan, regardless of the borrowers' 26 future marital status or the death of one of the borrowers. 27 * Sec. 8. AS 14.43.145(a) is amended to read: 28 (a) For the purposes of this chapter, a loan is in default after a loan payment 29 has become 180 or more days past due or, for a loan under AS 14.43.161 - 14.43.168 30 or 14.43.170 - 14.43.175, the default requirements established by the commission have 31 been met. Upon default,

01 (1) repayment of the remaining balance is accelerated and due; 02 (2) the commission may take the borrower's permanent fund dividend 03 under AS 43.23.067; 04 (3) the commission may issue an order to withhold and deliver under 05 AS 14.43.147; 06 (4) the commission may provide notice of the default to a licensing 07 entity for nonrenewal of the license under AS 14.43.148; [AND] 08 (5) the commission may record the lien created under AS 14.43.149; 09 and 10 (6) the commission may establish an administrative collection 11 order under AS 14.43.151 - 14.43.155. 12 * Sec. 9. AS 14.43 is amended by adding new sections to read: 13 Sec. 14.43.151. Authority and procedure to administratively establish and 14 enforce a collection order. If a judgment in favor of the commission has not been 15 entered by the court regarding a defaulted loan awarded under this chapter, the 16 commission may establish a duty to repay the defaulted loan through a collection order 17 using the procedures prescribed in AS 14.43.152 - 14.43.155 and may enforce the 18 collection order. Action under this section may be undertaken at the commission's 19 discretion if the borrower is in default under AS 14.43.145. 20 Sec. 14.43.152. Initiation of administrative action to establish a collection 21 order; required notice. (a) An action to establish a collection order authorized under 22 AS 14.43.151 is initiated by the commission's serving on the borrower a notice of 23 establishment of collection order. The notice shall be served by mailing the notice to 24 the borrower at 25 (1) the borrower's most recent address provided to the commission by 26 the borrower; or 27 (2) another address known to the commission. 28 (b) The notice served under (a) of this section must state 29 (1) the amount of the liability for default under AS 14.43.145 for 30 which the borrower is found to be responsible; the amount stated under this paragraph 31 shall include all principal, interest, and collection fees;

01 (2) that a lien may be recorded against the borrower's property as 02 authorized under AS 14.43.145(a)(5); 03 (3) that the borrower may appear at a hearing held by the commission 04 and show cause that a collection order should not be entered because, at the time of the 05 notice, 06 (A) no loan payment was more than 180 days past due or, for a 07 loan under AS 14.43.161 - 14.43.168 or 14.43.170 - 14.43.175, the default 08 requirements established by the commission had not yet been met; or 09 (B) the borrower had entered into, or was in compliance with, 10 an agreement to forbear default with the commission; and 11 (4) that, if the borrower served with the notice does not request a 12 hearing within 30 days after the date of mailing of the notice, a collection order will be 13 entered and the property of the borrower will be subject to a lien under AS 14.43.149 14 in the amount stated in the collection order without further notice or hearing. 15 Sec. 14.43.153. Hearings in administrative action to establish a collection 16 order; burden of proof. (a) A borrower served with a notice of establishment of 17 collection order under AS 14.43.152 is entitled to a hearing before the commission if 18 the request for a hearing is served on the commission by registered mail, return receipt 19 requested, within 30 days after the date the notice is mailed to the borrower. 20 (b) If a request for a hearing in accordance with (a) of this section is made, the 21 issuance of a collection order is automatically stayed pending the decision of the 22 hearing officer for the commission. If a request for a hearing is not made, the 23 collection order is final at the expiration of the 30-day period specified in (a) of this 24 section. 25 (c) A borrower claiming that the notice is incorrect has the burden at hearing 26 to document the existence of one of the conditions described in AS 14.43.152(b)(3)(A) 27 and (B). 28 (d) Within 60 days after the date of the hearing, the hearing officer shall enter 29 a decision determining whether default has occurred and, if default has occurred, 30 specifying the amount of the collection order and declaring that the property of the 31 borrower is subject to a lien under AS 14.43.149 in the amount of the collection order.

01 (e) If the borrower who requested the hearing fails to appear at the hearing, the 02 hearing officer shall enter a decision 03 (1) confirming that a default has occurred; 04 (2) confirming the amount of the collection order; 05 (3) declaring that the property of the borrower is subject to a lien under 06 AS 14.43.149 in the amount stated under (2) of this subsection. 07 (f) The decision of the hearing officer is a final decision that may be appealed 08 to the superior court under the Alaska Rules of Appellate Procedure. 09 Sec. 14.43.154. Collection orders as judgments. A collection order is 10 equivalent to a judgment and becomes vested 11 (1) at the expiration of the 30-day period described in AS 14.43.153(b) 12 if a hearing is not requested; or 13 (2) on the date the hearing officer enters a decision in favor of the 14 commission if a hearing was requested by the borrower. 15 Sec. 14.43.155. Nature of remedies. AS 14.43.154 provides a remedy in 16 addition to and not as a substitute for any other remedies available to the commission. 17 * Sec. 10. AS 14.43.161 is amended to read: 18 Sec. 14.43.161. Purpose; creation. There is established the AlaskAdvantage 19 [ALASKA ADVANTAGE] loan program to provide postsecondary educational 20 financial assistance through the federal guaranteed student loan program. The 21 AlaskAdvantage [ALASKA ADVANTAGE] loan program is the primary source for 22 financial aid to eligible borrowers under this chapter. 23 * Sec. 11. AS 14.43.166 is amended to read: 24 Sec. 14.43.166. Repayment of loans. A borrower's obligation to commence 25 repayment of the principal and interest on a loan under AS 14.43.161 - 14.43.166 and 26 14.43.168 [AS 14.43.161 - 14.43.168] begins six months after the borrower's 27 completion or other termination of the postsecondary education program. The 28 commission may accelerate the repayment of any loan made in error or in reliance 29 upon a false statement made by the borrower. The commission shall determine the 30 period over which loans are repaid; however, the maximum period of repayment of 31 loans may not exceed the maximum period permitted under applicable provisions of

01 the federal guaranteed student loan program. 02 * Sec. 12. AS 14.43.168(b) is amended to read: 03 (b) The provisions of AS 14.43.145 - 14.43.155 [AS 14.43.145 - 14.43.150] 04 apply to loans under AS 14.43.161 - 14.43.168 that are in default. 05 * Sec. 13. AS 14.43.170 is amended to read: 06 Sec. 14.43.170. Creation; purpose. There is created the Alaska supplemental 07 education loan program to provide postsecondary educational supplemental financial 08 assistance. Supplemental financial assistance is available only if the financial aid 09 available through the AlaskAdvantage [ALASKA ADVANTAGE] loan program is 10 insufficient to cover the costs of attendance at a postsecondary institution or if the 11 borrower does not qualify for financial aid under the federal guaranteed student loan 12 program. The commission shall make the public aware of the Alaska supplemental 13 education loan program to facilitate providing loans to as many eligible borrowers as 14 possible. 15 * Sec. 14. AS 14.43.171 is amended to read: 16 Sec. 14.43.171. Applicability of other laws. The provisions of 17 AS 14.43.120(d)(4), 14.43.122, 14.43.135, 14.43.140, 14.43.145 - 14.43.160, 18 14.43.164, 14.43.166, and 14.43.168 [AND 14.43.166 - 14.43.168] apply to the loans 19 made under AS 14.43.170 - 14.43.175 as if the loans were made under those 20 applicable provisions. 21 * Sec. 15. AS 14.43.172(c) is amended to read: 22 (c) In addition to the provisions of (a) of this section, a borrower is eligible for 23 a loan under AS 14.43.170 - 14.43.175 if the borrower 24 (1) is not delinquent in payment [ON AND HAS NEVER BEEN IN 25 DEFAULT] on a loan previously awarded by the commission; 26 (2) at the time of application or loan disbursement, does not have a 27 past due child support obligation established by court order or by the child support 28 enforcement division under AS 25.27.160 - 25.27.220; 29 (3) has not, within the previous five years, had a loan discharged or 30 written off by the commission for any reason; 31 (4) does not have a status, at the time of application for a loan or

01 disbursement of loan money, that would prevent the borrower from repaying the loan 02 as it becomes due; 03 (5) has not, within the previous five years, defaulted on another loan 04 made to the borrower by a lending entity unless the borrower can show good faith 05 efforts to repay the loan and extraordinary circumstances that led to the default; 06 [AND] 07 (6) does not have a credit history, at the time of application for a loan, 08 that demonstrates chronic inability or unwillingness to pay an extension of credit or 09 loan as it becomes due; and [.] 10 (7) has [AS] complied with the military selective service registration 11 requirements imposed under 50 U.S.C. App. 453 (Military Selective Service Act), if 12 those requirements were applicable to the person. 13 * Sec. 16. AS 14.43.172(d) is amended to read: 14 (d) The commission may not make a loan to a borrower who has been in 15 default on a loan previously awarded by the commission unless [IF 16 (1)] the previously awarded loan has been paid in full [; AND 17 (2) ANOTHER INDIVIDUAL WHO SATISFIES THE 18 REQUIREMENTS OF (c) OF THIS SECTION COSIGNS THE LOAN]. 19 * Sec. 17. AS 14.43.300(a) is amended to read: 20 (a) An education loan to a recipient under AS 14.43.250(b)(1) - (4) or (6) may 21 not exceed $2,500 a school year for an undergraduate student or $5,000 a school year 22 for a graduate student [, EXCLUSIVE OF LOAN GUARANTEE FEES UNDER (g) 23 OF THIS SECTION,] and may not be made to a student for more than six years. An 24 education loan to a recipient under AS 14.43.250(b)(5) may not exceed the cost of 25 tuition and required fees, [LOAN GUARANTEE FEES UNDER (g) OF THIS 26 SECTION,] books and educational supplies, room and board, and transportation for 27 two round trips between the recipient's home and school each year. A loan under 28 AS 14.43.250(b)(5) may not be made for more than five years of undergraduate study, 29 five years of graduate study, or a combined maximum of eight years of study. 30 * Sec. 18. AS 14.43.400 is amended to read: 31 Sec. 14.43.400. Purpose; creation. There is created [ESTABLISHED] the

01 AlaskAdvantage education [ALASKA STATE EDUCATIONAL INCENTIVE] 02 grant program to provide financial assistance to eligible students to enable them to 03 attend, or continue their attendance at, postsecondary educational institutions. Funds 04 designated by the corporation or appropriated for this program may [SHALL] be 05 used as matching funds for the state's participation in the federal [STATE STUDENT 06 INCENTIVE] grant program under 20 U.S.C. 1070c - 1070c-4 [(P.L. 92-318; 20 07 U.S.C. 1070c - 1070c-3)]. 08 * Sec. 19. AS 14.43.405(a) is repealed and reenacted to read: 09 (a) The AlaskAdvantage education grant program created under AS 14.43.400 10 - 14.43.420 shall be administered by the executive director of the commission. 11 * Sec. 20. AS 14.43 is amended by adding a new section to read: 12 Sec. 14.43.406. Applicability of other laws. (a) To the extent they are not in 13 conflict with the provisions of AS 14.43.400 - 14.43.420, the provisions of 14 AS 14.43.162(b), 14.43.910, and 14.43.920 apply to a grant made under AS 14.43.400 15 - 14.43.420. 16 (b) In determining a student's eligibility for a grant under AS 14.43.400 - 17 14.43.420, the executive director of the commission shall apply the standards 18 contained in the definitions of "full-time student," "half-time student," and "school 19 year" in AS 14.43.160 as if those provisions were applicable to application for the 20 grant. 21 * Sec. 21. AS 14.43.410 is amended to read: 22 Sec. 14.43.410. Distribution of funds. The funds [APPROPRIATED] for the 23 AlaskAdvantage education [EDUCATIONAL INCENTIVE] grant program may 24 [SHALL] be allocated to eligible students in accordance with the provisions of the 25 federal [STATE STUDENT INCENTIVE] grant program under 20 U.S.C. 1070c - 26 1070c-4 and regulations adopted under AS 14.43.105 and 14.43.405. 27 * Sec. 22. AS 14.43.410 is amended by adding a new subsection to read: 28 (b) The commission may set aside a portion of grant awards for otherwise 29 eligible applicants whose employment prevents them from attending school on a full- 30 time basis. The commission shall adopt regulations to carry out the purposes of this 31 subsection.

01 * Sec. 23. AS 14.43.415 is repealed and reenacted to read: 02 Sec. 14.43.415. Eligibility; priority. (a) For an applicant to be eligible for a 03 grant under AS 14.43.400 - 14.43.420, the applicant must be 04 (1) a resident of this state; 05 (2) enrolled or about to be enrolled 06 (A) at an institution approved to participate in federal financial 07 aid programs under 20 U.S.C. 1070 - 1099c-2, as amended, located in this 08 state; and 09 (B) on at least a half-time basis; and 10 (3) able to demonstrate financial need in accordance with standards for 11 determining financial need established by the commission under 20 U.S.C. 1070c-2, as 12 amended. 13 (b) The commission shall give an applicant eligible under (a) of this section 14 priority for a grant award if that applicant is, or is about to be, enrolled in a program of 15 study that is preparatory for employment in an occupation or profession for which the 16 Department of Labor and Workforce Development, or another workforce data source 17 selected as reliable by the commission, indicates there is a severe shortage of trained 18 individuals in this state. Additionally, the commission may give an applicant priority 19 for a grant award if that applicant has participated in a secondary education program 20 of study that can be demonstrated to the commission to be a predictor for success at 21 the postsecondary education level for a program of study described in this subsection. 22 For purposes of this subsection, 23 (1) "occupation or profession" means a job for which specific 24 postsecondary certification is a prerequisite for entry-level placement; 25 (2) "severe shortage" means a current or recurring job vacancy rate of 26 15 percent or greater, as determined by the Department of Labor and Workforce 27 Development or by another workforce data source determined reliable by the 28 commission. 29 (c) The commission shall adopt regulations to establish a prioritization process 30 for awarding grants under AS 14.43.400 - 14.43.420. 31 * Sec. 24. AS 14.43.420(a) is amended to read:

01 (a) A grant made under AS 14.43.400 - 14.43.420 [AS 14.43.400 - 14.43.500] 02 may not be in an amount less than $500 [$100] nor more than $2,000 [$1,500] for 03 each school [ACADEMIC] year. 04 * Sec. 25. AS 14.43.420 is amended by adding a new subsection to read: 05 (c) A student may receive not more than a total of $8,000 in grants awarded 06 under AS 14.43.400 - 14.43.420. 07 * Sec. 26. AS 14.43.740(a) is amended to read: 08 (a) The provisions of AS 14.43.100, 14.43.120(a) - (c), (m), and (r) - (u), 09 14.43.122 [14.43.110, 14.43.120(a) - (d), (m), AND (r) - (u)], 14.43.135, 14.43.145 - 10 14.43.155 [14.43.145 - 14.43.150], and 14.43.910 - 14.43.990 apply to a loan made 11 under AS 14.43.710 - 14.43.750. 12 * Sec. 27. AS 14.43.740 is amended by adding a new subsection to read: 13 (g) The commission may, by regulation, set loan limits for loans made under 14 AS 14.43.710 - 14.43.750. 15 * Sec. 28. AS 14.43.990 is amended by adding new paragraphs to read: 16 (5) "AlaskAdvantage" means the service mark registered by the 17 commission under 15 U.S.C. 1051 (Trademark Act) that is used to describe financial 18 aid and higher education outreach programs and services provided by the commission; 19 (6) "education loan" means a loan made to finance the cost of 20 attendance in a postsecondary education program that is made by the commission or is 21 a loan received through the federal guaranteed student loan program. 22 * Sec. 29. AS 14.44.040(c) is amended to read: 23 (c) If a program participant defaults on the repayment obligation, the 24 provisions of AS 14.43.145 - 14.43.155 [AS 14.43.145 - 14.43.150] apply to collect 25 on the obligation as if it were a defaulted loan under AS 14.43. 26 * Sec. 30. AS 36.30.850(b) is amended by adding a new paragraph to read: 27 (44) contracts of the Alaska Commission on Postsecondary Education 28 or the Alaska Student Loan Corporation for the guarantee and disbursing of financial 29 aid money to institutions of postsecondary education under the financial aid programs 30 under AS 14.43.091 - 14.43.750 and AS 14.44.025. 31 * Sec. 31. AS 14.42.110, 14.42.220(f); AS 14.43.122(b), 14.43.300(g), 14.43.405(b),

01 14.43.420(b), and 14.43.500 are repealed. 02 * Sec. 32. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 TRANSITION: REGULATIONS. The Alaska Student Loan Corporation may 05 proceed to adopt regulations to implement the changes made by sec. 6 of this Act. The 06 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 07 effective date of sec. 6 of this Act. 08 * Sec. 33. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 REVISOR OF STATUTES INSTRUCTIONS. (a) The revisor of statutes is 11 instructed to change the heading of Article 5 of AS 14.43 from "Article 5. Alaska Advantage 12 Loan Program." to "Article 5. AlaskAdvantage Loan Program." 13 (b) The revisor of statutes is instructed to change the heading of Article 8 of AS 14.43 14 from "Article 8. Educational Incentive Grant Program." to "Article 8. AlaskAdvantage 15 Education Grant Program." 16 * Sec. 34. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 REGULATIONS ATTORNEY INSTRUCTIONS. Wherever in the Alaska 19 Administrative Code the term "Alaska advantage" is used, it shall be read as 20 "AlaskAdvantage" when to do so would be consistent with the changes in this Act. Under 21 AS 44.62.125(b)(6), the regulations attorney is instructed to make changes in the Alaska 22 Administrative Code consistent with this section. 23 * Sec. 35. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 LEGISLATIVE IDENTIFICATION OF PROJECTS FOR FINANCING. (a) The 26 amount of $7,000,000 may be appropriated from the proceeds of bonds issued under 27 AS 14.42.220(a)(3) to the Department of Community and Economic Development to be 28 awarded as a grant of $5,000,000 under AS 37.05.315 to the Municipality of Anchorage for 29 renovation of the Anchorage Museum of History and Art and as a grant of $2,000,000 under 30 AS 37.05.315 to the City of Ketchikan for library design, site acquisition, and construction. 31 (b) The amount of $82,504,694 may be appropriated from the proceeds of bonds

01 issued under AS 14.42.220(a)(3) to the Department of Education and Early Development to 02 be awarded as grants for design, construction, and major maintenance for public schools, 03 subject to reallocation between projects in accordance with AS 37.07.080(e), for the following 04 projects: 05 MUNICIPALITY OR 06 PROJECT REAA LOCATION AMOUNT 07 (1) Blackwell School new well, Anvik Iditarod Area $ 92,019 08 (2) Glennallen Elementary School Copper River 2,095,501 09 exterior upgrade 10 (3) Nulato structural roof repair Yukon-Koyukuk 829,439 11 (4) Nenana boiler replacement/heating Nenana City 393,407 12 system upgrade 13 (5) Tetlin School site civil Alaska Gateway 222,239 14 improvements 15 (6) Allakaket renovate water/sewer Yukon-Koyukuk 303,924 16 facility 17 (7) Elicavicuar Elementary exterior Saint Mary's 459,757 18 upgrades 19 (8) Kake Elementary ventilation Kake City 394,029 20 system upgrade 21 (9) Tetlin School building Alaska Gateway 873,306 22 improvements 23 (10) David Louis Memorial School Iditarod Area 180,128 24 emergency repairs and boiler 25 relocation, Grayling 26 (11) Top of the Kuskokwim School Iditarod Area 173,500 27 boiler replacement, Nikolai 28 (12) Innoko River School tank farm Iditarod Area 247,032 29 pipeline and remediation, 30 Shageluk 31 (13) Holy Cross School vocational Iditarod Area 177,760

01 education shop upgrade 02 (14) Allakaket restroom renovation Yukon-Koyukuk 311,862 03 (15) Andreafski High School code Saint Mary's 179,906 04 upgrades 05 (16) Annette Island schools Annette Island 1,090,863 06 security/safety and major 07 maintenance upgrades 08 (17) Dot Lake School mechanical Alaska Gateway 782,034 09 upgrade 10 (18) Minto restroom renovation Yukon-Koyukuk 179,150 11 (19) Thorne Bay House access ramp Southeast Island 139,045 12 (20) Kaltag exterior siding Yukon-Koyukuk 351,245 13 replacement 14 (21) Iditarod fire alarm upgrades Iditarod Area 192,994 15 (22) Kilbuck Elementary School Lower Kuskokwim 5,401,968 16 deferred maintenance, Bethel 17 (23) Mikelnguut Elitnaurviat Lower Kuskokwim 2,331,937 18 Elementary School deferred 19 maintenance, Bethel 20 (24) W. Miller Memorial K-12 Lower Kuskokwim 2,598,517 21 deferred maintenance, Napaskiak 22 (25) Eek K-12 deferred maintenance Lower Kuskokwim 1,094,677 23 (26) Nuniwaarmiut K-12 deferred Lower Kuskokwim 1,110,915 24 maintenance, Mekoryuk 25 (27) Rocky Mountain K-12 deferred Lower Kuskokwim 1,376,841 26 maintenance, Goodnews Bay 27 (28) Nunam Iqua K - 12 Lower Yukon 10,667,574 28 new school construction, 29 Sheldon Point 30 (29) Howard Valentine K - 12 Southeast Island 3,748,143 31 new school construction,

01 Coffman Cove 02 (30) Dillingham High School heating Dillingham 218,000 03 controls 04 (31) Yakutat Grade School Yakutat 1,000,000 05 renovation 06 (32) Mt. Eccles construction Cordova 350,000 07 reimbursement 08 (33) Noatak School construction Noatak 3,100,000 09 match 10 (34) College Gate lighting Anchorage 50,000 11 multi-purpose room 12 (35) College Gate ceiling tile Anchorage 30,000 13 replacement 14 (36) District-wide radio repeater Anchorage 2,100,000 15 system 16 (37) District-wide security system Anchorage 900,000 17 replacement 18 (38) District-wide fire alarm system Anchorage 1,200,000 19 replacement 20 (39) District-wide intercom/ Anchorage 333,000 21 clock system replacement 22 (40) Rabbit Creek install heat Anchorage 140,000 23 tape and roof drains 24 (41) Turnagain replace site lighting Anchorage 100,000 25 (42) Operations Building electrical Anchorage 60,000 26 service upgrade 27 (43) Service High School bleacher Anchorage 100,000 28 repair/upgrade 29 (44) Mears bleacher repair/upgrade Anchorage 80,000 30 (45) West High School bleacher Anchorage 150,000 31 repair/upgrade

01 (46) Romig kitchen electrical panels Anchorage 30,000 02 upgrade 03 (47) Turnagain sewer heat tape Anchorage 30,000 04 (48) Central kitchen lights Anchorage 20,000 05 replacement 06 (49) Romig lights locker Anchorage 60,000 07 room replacement 08 (50) Lake Otis electrical Anchorage 30,000 09 distribution upgrade 10 (51) West High School library Anchorage 900,000 11 reroof 12 (52) Mount Iliamna reroof building Anchorage 735,000 13 (53) Willow Crest replace Anchorage 150,000 14 classroom carpet 15 (54) Tudor replace vinyl asbestos Anchorage 630,000 16 tile 17 (55) Ocean View reroof section H Anchorage 40,000 18 (56) Ptarmigan reroof section C Anchorage 210,000 19 (57) Rabbit Creek reroof Anchorage 40,000 20 sections C and I 21 (58) Wonder Park reroof section I Anchorage 75,000 22 (59) Susitna reroof section C Anchorage 15,000 23 (60) Hanshew ADA entry Anchorage 50,000 24 door upgrade 25 (61) Susitna replace classroom Anchorage 150,000 26 and office carpet 27 (62) Willow Crest replace domestic Anchorage 450,000 28 water piping 29 (63) Inlet View heating/ventilation/ Anchorage 800,000 30 air conditioning/direct digital 31 control upgrade

01 (64) Inlet View repair drinking Anchorage 45,000 02 water main 03 (65) Career Center replace Anchorage 800,000 04 heating water piping 05 (66) Chester Valley heating/ Anchorage 500,000 06 ventilation/air conditioning/ 07 direct digital control upgrade 08 (67) Hanshew replace variable air Anchorage 500,000 09 volume boxes 10 (68) Rabbit Creek heating/ Anchorage 500,000 11 ventilation/air conditioning/ 12 direct digital control upgrade 13 (69) West High School library Anchorage 300,000 14 replace victaulic fittings 15 (70) Campbell replace pumps/ Anchorage 200,000 16 domestic hot water heater 17 (71) Campbell replace heating Anchorage 300,000 18 water piping 19 (72) Orion replace fan unit Anchorage 100,000 20 (73) Music Department heating/ Anchorage 300,000 21 ventilation/air conditioning/ 22 direct digital control upgrade 23 (74) Gladys Wood heating/ Anchorage 700,000 24 ventilation/air conditioning/ 25 direct digital control upgrade 26 (75) Data Processing heating/ Anchorage 500,000 27 ventilation/air conditioning/ 28 direct digital control upgrade 29 (76) O'Malley replace drinking Anchorage 100,000 30 water tank 31 (77) Mears replace hot water heater Anchorage 125,000

01 (78) Iditarod Elementary School Matanuska-Susitna 15,000 02 fencing 03 (79) Butte Elementary School Matanuska-Susitna 81,000 04 ADA ramp 05 (80) Talkeetna Elementary School Matanuska-Susitna 10,000 06 fencing 07 (81) Houston Middle School roof Matanuska-Susitna 650,000 08 repair 09 (82) Administration concession Matanuska-Susitna 15,000 10 kitchen 11 (83) Administration roofing Matanuska-Susitna 550,000 12 (84) Snowshoe roofing Matanuska-Susitna 400,000 13 (85) Burchell High School clock/ Matanuska-Susitna 30,000 14 intercom system 15 (86) Susitna Valley High Matanuska-Susitna 850,000 16 School roof repair 17 (87) Colony High School running Matanuska-Susitna 130,000 18 track upgrade 19 (88) Wasilla High School running Matanuska-Susitna 130,000 20 track upgrade 21 (89) Palmer High School running Matanuska-Susitna 65,000 22 track repair 23 (90) Palmer High School visitor Matanuska-Susitna 50,000 24 bleachers Machetanz Field 25 (91) Wasilla Middle School Matanuska-Susitna 40,000 26 resurface gym floors 27 (92) Delta Elementary School Delta 859,000 28 construction 29 (93) Nikiski/North Star Kenai 350,000 30 consolidation construction 31 and rehabilitation

01 (94) Nanwalek and Port Graham Kenai 700,000 02 teacher housing upgrade 03 (95) Seward schools fiber optic Kenai 100,000 04 installation 05 (96) District-wide arsenic Kenai 1,100,000 06 remediation 07 (97) Homer and Kenai track repair Kenai 1,500,000 08 (98) District-wide asphalt repair Kenai 1,000,000 09 (99) District-wide carpeting and Kenai 150,000 10 floor repair 11 (100) District-wide locker Kenai 100,000 12 replacement 13 (101) District central kitchen Fairbanks 6,000,000 14 upgrade/relocation 15 (102) Downtown schools upgrades Fairbanks 2,000,000 16 (103) Nome High School gym Nome 500,000 17 renovation 18 (104) Nome High School heating/ Nome 500,000 19 ventilation/air conditioning/ 20 changes and abatement 21 work 22 (105) Nome NACTEC renovation Nome 800,000 23 and upgrades 24 (106) Juneau elementary schools Juneau 3,000,000 25 maintenance and ADA 26 improvements 27 (107) Alaska State Archives Juneau 1,300,000 28 Building, relocation, design 29 and site development 30 (108) Ketchikan High School, Ketchikan 232,000 31 repair humanities

01 building roof 02 (109) Ketchikan High School, Ketchikan 65,000 03 repair curtain wall 04 (110) Valley Park, Houghtaling, Ketchikan 385,000 05 Point Higgins schools, 06 replace playground equipment 07 (111) Kodiak Island Borough Kodiak 237,000 08 KMS, concrete repair 09 (112) Port Alsworth library, Port Alsworth 363,000 10 renovation and 11 reconfiguration 12 (113) Cantwell School roof Cantwell 343,905 13 replacement and electrical 14 code upgrade 15 (114) Cantwell School sprinkler Cantwell 608,077 16 installation, fire alarm 17 upgrade, new well 18 (c) The amount of $53,584,000 may be appropriated from the proceeds of bonds 19 issued under AS 14.42.220(a)(3) to the University of Alaska for the following projects in the 20 amounts listed, subject to reallocation between projects in accordance with AS 37.07.080(e): 21 PROJECT LOCATION AMOUNT 22 (1) Integrated Science Facility Anchorage $21,600,000 23 construction 24 (2) School of Fisheries and Juneau 7,000,000 25 Ocean Science research 26 facility design and 27 construction 28 (3) Bioinformational and Fairbanks 10,000,000 29 Computer Science 30 research facility 31 construction

01 (4) Safety code and Americans Statewide 5,974,000 02 with Disabilities Act 03 improvements 04 (5) Lucy Cuddy Center upgrade Anchorage 1,000,000 05 and renewal 06 (6) Bristol Bay classroom Dillingham 1,000,000 07 expansion construction 08 (7) Paul/Ziegler classroom Ketchikan 1,000,000 09 renovation and campus 10 improvements 11 (8) Sitka campus improvements Sitka 250,000 12 (9) Tanana Valley campus Fairbanks 1,000,000 13 classroom expansion 14 and renovation 15 (10) Hendrickson Building Juneau 1,213,000 16 renovations 17 (11) Homer campus new facility Homer 1,375,000 18 classroom construction 19 (12) Prince William Sound Valdez 1,000,000 20 facilities classroom 21 construction 22 (13) Fishery Industrial Kodiak 510,000 23 Technology Center 24 renovations and 25 improvements 26 (14) Benny Benson Building Kodiak 662,000 27 learning center expansion 28 * Sec. 36. Section 6 of this Act takes effect January 1, 2005. 29 * Sec. 37. Except as provided in sec. 36 of this Act, this Act takes effect immediately under 30 AS 01.10.070(c).