CSSB 195(FIN): "An Act relating to the membership and authority of the Alaska Commission on Postsecondary Education; relating to the Alaska Student Loan Corporation; relating to teacher education loans; relating to interest on and consolidation of postsecondary education loans; relating to Alaska supplemental education loans; relating to AlaskAdvantage grants; relating to the Alaska family education loan program; relating to postsecondary educational institutions; and providing for an effective date."
00 CS FOR SENATE BILL NO. 195(FIN) 01 "An Act relating to the membership and authority of the Alaska Commission on 02 Postsecondary Education; relating to the Alaska Student Loan Corporation; relating to 03 teacher education loans; relating to interest on and consolidation of postsecondary 04 education loans; relating to Alaska supplemental education loans; relating to 05 AlaskAdvantage grants; relating to the Alaska family education loan program; relating 06 to postsecondary educational institutions; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 14.42.015(a) is amended to read: 09 (a) There is in the Department of Education and Early Development the 10 Alaska Commission on Postsecondary Education consisting of 11 (1) two members of the Board of Regents of the University of Alaska 12 designated by the members of that body; 13 (2) one person representing private, nonprofit, higher education in the
01 state, appointed by the governor [SELECTED BY THE BOARD OF TRUSTEES 02 OF ALASKA PACIFIC UNIVERSITY FROM AMONG ITS MEMBERSHIP]; 03 (3) one person representing the Department of Education and Early 04 Development selected by the state Board of Education and Early Development; 05 (4) four persons broadly and equitably representative of the general 06 public appointed by the governor; 07 (5) one member of the Alaska Workforce Investment Board 08 established by AS 23.15.550 designated by the members of that body; 09 (6) one person from the members of the local community college 10 advisory councils appointed by the governor; 11 (7) two members from the legislature, one of whom shall be appointed 12 by the president of the senate and one by the speaker of the house of representatives; 13 (8) one person appointed in accordance with (e) of this section who is 14 a full-time student as defined in AS 14.43.160; 15 (9) one administrator appointed by the governor from a proprietary 16 institution of postsecondary education that has an authorization to operate in the state 17 issued under AS 14.48. 18 * Sec. 2. AS 14.42.015(d) is amended to read: 19 (d) A full-time postsecondary student shall be appointed to the Alaska 20 Commission on Postsecondary Education from a list of nominees submitted to the 21 governor. The governor shall make the appointment from the list within 60 days after 22 it is submitted. The list must consist of the names of two or more nominees from 23 private nonprofit institutions of higher education in the state [ALASKA PACIFIC 24 UNIVERSITY] and two nominees from each campus of the University of Alaska. The 25 nominees shall be selected by the students at private nonprofit institutions of higher 26 education [ALASKA PACIFIC UNIVERSITY] and each campus of the University of 27 Alaska by an election held on each campus. Elections under this subsection shall be 28 held concurrently with student regent elections required under AS 14.40.150(b) and 29 conducted under rules established by the Office of the Governor. If a private 30 nonprofit institution of higher education in the state does not have an organized 31 student governance structure to hold elections, the institution's governing board
01 may nominate a full-time student and forward the name to the governor for 02 consideration. The term of office of the student member of the commission is two 03 years and begins June 1 of the year in which the appointment is made. Membership on 04 the commission is immediately forfeited by a student member who ceases to be a full- 05 time student. Within 60 days after a vacancy occurs, the governor shall appoint a 06 successor from those students appearing on the list of nominees to serve for the 07 unexpired term of the original appointee. The term "campus" used in this subsection 08 means a portion of the University of Alaska designated as a "campus" by the Board of 09 Regents. 10 * Sec. 3. AS 14.42.030(e) is amended to read: 11 (e) The commission may 12 (1) adopt regulations under AS 44.62 (Administrative Procedure Act) 13 to 14 (A) carry out the purposes of 15 (i) AS 14.43.091 - 14.43.849, 14.43.990, AS 14.44, and 16 AS 14.48; and 17 (ii) AS 14.43.910 and 14.43.920 as they relate to the 18 purposes of AS 14.43.091 - 14.43.849, 14.43.990, AS 14.44, and 19 AS 14.48; 20 (B) ensure compliance with the requirements imposed by state 21 and federal statutes and regulations governing the guaranty, insurance, 22 purchase, or other dealings in eligible loans by federal agencies, 23 instrumentalities, or corporations; and 24 (C) establish standards for the 25 (i) administration of hearings conducted under 26 AS 14.43.153; and 27 (ii) administrative enforcement of collection orders 28 under AS 14.43.151 - 14.43.155; 29 (2) delegate to the executive director of the commission or a 30 subcommittee of the commission any duty imposed on or power granted to the 31 commission by this chapter, AS 14.43, AS 14.44, or AS 14.48, except its power to
01 adopt regulations and its duty to consider appeals under AS 14.43.100(b) and 02 AS 14.48.120; 03 (3) establish task forces, committees, or subcommittees, not 04 necessarily consisting of commission members, to advise and assist the commission in 05 carrying out its functions; 06 (4) contract with or use existing institutions of postsecondary 07 education or other individuals or organizations to make studies, conduct surveys, 08 submit recommendations, or otherwise contribute to the work of the commission; 09 (5) establish fees for the review of an out-of-state institution that 10 (A) requests approval for participation in the programs under 11 AS 14.43.091 - 14.43.750, 14.43.990, and AS 14.44; and 12 (B) is not accredited by a national or regional accreditation 13 association recognized by the Council for Higher Education Accreditation; 14 [AND] 15 (6) collect all fees and costs incurred in collection of the amount owed 16 on a loan or repayment obligation if the loan or repayment obligation becomes 17 delinquent or in default; in this paragraph, fees and costs include attorney fees, court 18 costs, and collection fees charged by a collection agency; and 19 (7) if approved by the department, receive and analyze 20 performance data for students in grades kindergarten through 12 and enter into 21 contracts for the purpose of assessing education outcomes. 22 * Sec. 4. AS 14.42.035 is amended to read: 23 Sec. 14.42.035. Collection of data. The commission may require the 24 institutions of public and private higher education and other institutions of 25 postsecondary education [,] in the state to submit data on costs, selection, and 26 retention of students, enrollments, education outcomes, plant capacities and use, and 27 other matters pertinent to effective planning and coordination, and shall furnish 28 information concerning these matters to the governor, to the legislature, and to other 29 state and federal agencies as requested by them. 30 * Sec. 5. AS 14.42.200 is amended to read: 31 Sec. 14.42.200. General powers. In addition to other powers granted in this
01 chapter, the corporation may 02 (1) sue and be sued in its own name; 03 (2) adopt an official seal; 04 (3) adopt regulations under AS 44.62 (Administrative Procedure Act) 05 to carry out the purposes of this chapter; 06 (4) make and execute agreements, contracts, and other instruments 07 necessary or convenient in the exercise of the powers and functions of the corporation, 08 including contracts with a person or governmental entity; 09 (5) receive, take, hold, and administer, on behalf of the corporation and 10 for any of its purposes, any appropriation, gift, grant, bequest, devise, or donation of 11 real property or personal property [IF THAT OBLIGATION OF THE 12 CORPORATION IS NOT A DEBT OF THE STATE]; in this paragraph, "property" 13 includes 14 (A) money; and 15 (B) life estates, leases, or other interests in property; 16 (6) borrow money as provided in this chapter to carry out its corporate 17 purposes and issue its obligations as evidence of the borrowing, if that obligation of 18 the corporation is not a debt of the state; 19 (7) include in a borrowing the amounts to pay financing charges, 20 interest on the obligations for a period not exceeding one year after the date on which 21 the corporation estimates funds will otherwise be available to pay the interest, 22 consultant, advisory, and legal fees, and other expenses necessary or incident to the 23 borrowing; 24 (8) invest or reinvest, subject to its contracts with noteholders and 25 bondholders, money held by the corporation as set out in AS 37.10.071; 26 (9) set and collect interest, fees, and charges in connection with 27 education loans or repayment obligations held by the corporation and its servicing 28 agents; in this paragraph, "charges" includes costs of financing by the corporation, 29 service charges, insurance premiums, and other costs incurred by the corporation in 30 carrying out its corporate purposes; 31 (10) gather information on postsecondary education financial resources
01 available to residents of this state and disseminate the information to reasonably assure 02 that qualified residents are aware of those financial resources; 03 (11) service education loans and repayment obligations held by the 04 corporation; 05 (12) finance, purchase, or participate in the financing or purchasing 06 [PURCHASE] of education loans; 07 (13) contract in advance for the financing, purchasing, [PURCHASE] 08 or sale of education loans; 09 (14) sell or participate in the sale, either public or private and on terms 10 authorized by the board, of education loans to the Student Loan Marketing Association 11 or to other purchasers; 12 (15) collect and pay reasonable fees and charges in connection with the 13 financing, purchase, sale, and servicing of education loans and repayment obligations; 14 (16) enter into agreements with the federal government, including 15 guaranty agreements and supplemental guaranty agreements as described in 20 U.S.C. 16 1001 - 1155, as amended, as necessary to provide for the receipt by the corporation of 17 administrative allowances and other benefits available under 20 U.S.C. 1001 - 1155, 18 as amended; 19 (17) administer federal money allotted to the state involving insured 20 education loans and related administrative costs and other matters; 21 (18) enter into agreements with the commission relating to education 22 loans and repayment obligations, the administration of the financial aid and loan 23 programs under AS 14.43.091 - 14.43.750, 14.43.990, and AS 14.44, and the payment 24 of and security for bonds of the corporation; 25 (19) to the extent permitted under contracts with bondholders, consent 26 to the modification of the rate of interest, time of payment of an installment of 27 principal or interest, or other terms of an education loan or repayment obligation held 28 by the corporation; 29 (20) procure insurance against any loss in connection with the 30 operation of its programs; 31 (21) provide advisory services to borrowers and other participants in
01 the corporation's programs; 02 (22) enter into credit facility agreements and make pledges, covenants, 03 and agreements with respect to the repayment of borrowings under the credit facility 04 agreements; 05 (23) develop and implement education financing programs; in this 06 paragraph, "programs" includes 07 (A) programs listed in AS 14.42.030(b)(1); 08 (B) programs for the guaranteeing, servicing, originating, and 09 financing of education loans for borrowers located both inside and outside the 10 state; and 11 (C) federal financial aid programs made under federal law; and 12 (24) perform acts that may be necessary or appropriate to carry out 13 effectively the general objectives and purposes of the corporation under AS 14.42.100 14 - 14.42.990. 15 * Sec. 6. AS 14.42.205(a) is amended to read: 16 (a) The purpose of this section is to provide for supplemental education loan 17 [PROGRAM] financing to assist qualified borrowers with unmet costs of attendance 18 at a postsecondary institution approved by the commission [IN MEETING 19 POSTSECONDARY EDUCATION COSTS FOR WHICH FEDERAL AND 20 PRIVATE FINANCIAL AID MAY BE INSUFFICIENT]. 21 * Sec. 7. AS 14.42.205(b) is amended to read: 22 (b) The corporation may develop and establish a financing program for the 23 Alaska supplemental education loan [PROGRAM] administered by the commission 24 under AS 14.43.170 - 14.43.175. 25 * Sec. 8. AS 14.42.205(c) is amended to read: 26 (c) The financing program established under (b) of this section 27 (1) shall 28 (A) provide that loans under the Alaska supplemental education 29 loan program are 30 [(i)] medium-range and long-range fixed-rate and 31 variable-rate loans; [AND
01 (ii) STRUCTURED TO OPERATE AS LINES OF 02 CREDIT;] 03 (B) require terms and conditions for loans under the Alaska 04 supplemental education loan program as the corporation determines are useful 05 and feasible; 06 (C) be designed to 07 (i) assist postsecondary institutions in this state in 08 attracting and retaining students; 09 (ii) maximize the amount of financing available by 10 using private activity tax-exempt bond capacity as may be allocated by 11 the state; and 12 (2) except as limited by (1)(B) of this subsection, may provide for 13 terms and conditions that are more attractive than prevailing terms and conditions 14 available to students from other supplemental education lenders. 15 * Sec. 9. AS 14.42.210(a) is amended to read: 16 (a) The education loan fund is established in the corporation. The education 17 loan fund is a trust fund to be used to carry out the purposes of AS 14.42.100 - 18 14.42.990, AS 14.43.091 - 14.43.175, [14.43.400 - 14.43.420,] 14.43.600 - 14.43.700, 19 14.43.710 - 14.43.750, 14.43.990, and AS 14.44.025. The fund consists of money or 20 assets appropriated or transferred to the corporation for the fund and money or assets 21 deposited in it by the corporation. The corporation may establish separate accounts in 22 the fund. 23 * Sec. 10. AS 14.42.210(b) is amended to read: 24 (b) Money and other assets of the education loan fund may be used to 25 (1) secure bonds of the corporation; 26 (2) pay the costs of administration of the fund; 27 (3) invest in education loans and investments under AS 37.10.071; 28 (4) finance programs approved under AS 14.43.091 - 14.43.175, 29 [14.43.400 - 14.43.420,] 14.43.600 - 14.43.700, 14.43.710 - 14.43.750, or 30 AS 14.44.040; and 31 (5) pay the costs of administering and collecting the loans and
01 repayment obligations under the financial aid programs listed in (4) of this subsection. 02 * Sec. 11. AS 14.42.210 is amended by adding a new subsection to read: 03 (d) The corporation may provide for terms and conditions for use of the 04 education loan fund that are more favorable than prevailing terms and conditions 05 available to students from other education lenders. 06 * Sec. 12. AS 14.42 is amended by adding a new section to read: 07 Sec. 14.42.215. Interest. (a) The corporation shall set the interest rate on a 08 loan financed by the corporation under AS 14.43.091 - 14.43.160, 14.43.170 - 09 14.43.175, 14.43.710 - 14.43.750, and AS 14.44.040. Interest on a loan accrues from 10 the time the loan is disbursed. 11 (b) A borrower may elect to make payments of interest that accrues during the 12 borrower's term of attendance at the postsecondary institution or during authorized 13 deferment periods; however, any unpaid interest shall be capitalized as part of the 14 principal to be repaid as agreed, or upon graduation, withdrawal, or completion of the 15 deferment period. 16 * Sec. 13. AS 14.42.240(c) is amended to read: 17 (c) In computing the amount of a capital reserve fund for the purpose of this 18 section, securities in which all or a portion of the fund is invested and credit facilities 19 deposited in or credited to a capital reserve fund under (f) of this section shall be 20 valued by a reasonable method established by the board by resolution or by trust 21 indenture. Valuation shall include the amount of interest earned or accrued as of the 22 date of valuation. 23 * Sec. 14. AS 14.42.240(g) is amended to read: 24 (g) In this section, "capital reserve fund requirement" means the amount 25 required to be on deposit in the capital reserve fund as of the date of computation as 26 determined by resolution of the board or by trust indenture. 27 * Sec. 15. AS 14.42.250 is amended to read: 28 Sec. 14.42.250. Validity of pledge. It is the intention of the legislature that a 29 pledge made in respect to bonds of the corporation shall be valid, perfected, and 30 binding from the time the pledge is made; that the money or property so pledged and 31 thereafter received by the corporation shall immediately be subject to the lien of the
01 pledge without physical delivery or further act; and that the lien of the pledge shall be 02 valid and binding as against all parties having claims of any kind in tort, contract, or 03 otherwise against the corporation irrespective of whether the parties have notice. 04 Neither the resolution, trust agreement, nor other instrument by which a pledge is 05 created need be recorded or filed under the provisions of AS 45.01 - AS 45.08, 06 AS 45.12, AS 45.14, and AS 45.29 (Uniform Commercial Code) to be valid, 07 perfected, binding, or effective. 08 * Sec. 16. AS 14.43.120(b) is amended to read: 09 (b) Education loans may only be used to attend a 10 (1) career education program operating on a sound fiscal basis that has 11 (A) operated for two years before the borrower attends; and 12 (B) submitted an executed program participation agreement as 13 required by the commission; or 14 (2) [A] college or university that 15 (A) has operated for at least two years before the borrower 16 attends; 17 (B) is accredited by a national or regional accreditation 18 association recognized by the Council for Higher Education [ON 19 RECOGNITION OF POSTSECONDARY] Accreditation or is approved by 20 the commission; 21 (C) if the loans are federally insured, is approved by the United 22 States Secretary of Education; 23 (D) is a degree granting institution; and 24 (E) has submitted an executed program participation agreement 25 as required by the commission. 26 * Sec. 17. AS 14.43.122 is repealed and reenacted to read: 27 Sec. 14.43.122. Consolidation of loans. (a) The corporation may offer a 28 borrower who has received more than one education loan the option of consolidating 29 the multiple loans into a single loan as provided in this section. 30 (b) For a borrower to be eligible for consolidation of a loan under this section, 31 the borrower must apply on a form approved by the corporation and provide proof
01 satisfactory to the corporation that the borrower 02 (1) physically resides in the state and has maintained a domicile in the 03 state for not less than 12 consecutive months before submitting an application for 04 consolidation; 05 (2) has not been physically absent from the state for more than 60 days 06 in the 12 months before submitting an application for consolidation; 07 (3) has not declared residency in another state; 08 (4) has not received a benefit of residency in another state. 09 (c) In this section, "education loan" means a loan to finance the cost of 10 attendance at a postsecondary institution in or outside the state. 11 * Sec. 18. AS 14.43.160(4) is amended to read: 12 (4) "half-time student" means an undergraduate, graduate, or career 13 education student who, during the semester, is enrolled and is in regular attendance at 14 classes at one or more public or private institutions of higher education for [AT 15 LEAST A TOTAL OF] six to 11 semester credit hours or an equivalent of six to 11 16 semester credit hours, and includes a career education student enrolled and in regular 17 attendance in classes for [AT LEAST] 15 hours a week; or a graduate student who is 18 enrolled and is in regular attendance at classes for the equivalent of six to eight 19 semester hours of credit or the equivalent; 20 * Sec. 19. AS 14.43.160(5) is amended to read: 21 (5) "school year" means an academic period that is a minimum of 30 22 weeks of instructional time that begins between July [SEPTEMBER] 1 of one year 23 and June 30 [AUGUST 31] of the following year; 24 * Sec. 20. AS 14.43.170 is amended to read: 25 Sec. 14.43.170. Creation; purpose. There is created the Alaska supplemental 26 education loan program to provide postsecondary educational supplemental financial 27 assistance. Supplemental financial assistance is available to qualified borrowers to 28 assist with unmet costs of attendance at a postsecondary institution approved by 29 the commission [ONLY IF THE FINANCIAL AID AVAILABLE THROUGH THE 30 ALASKADVANTAGE LOAN PROGRAM IS INSUFFICIENT TO COVER THE 31 COSTS OF ATTENDANCE AT A POSTSECONDARY INSTITUTION OR IF THE
01 BORROWER DOES NOT QUALIFY FOR FINANCIAL AID UNDER THE 02 FEDERAL GUARANTEED STUDENT LOAN PROGRAM]. The commission shall 03 make the public aware of the Alaska supplemental education loan program to facilitate 04 providing loans to as many eligible borrowers as possible. 05 * Sec. 21. AS 14.43.171 is amended to read: 06 Sec. 14.43.171. Applicability of other laws. The provisions of 07 AS 14.43.120(b), 14.43.120(d)(4) [AS 14.43.120(d)(4), 14.43.122], 14.43.135, 08 14.43.140, and 14.43.145 - 14.43.160 [, 14.43.164, 14.43.166, AND 14.43.168] apply 09 to the loans made under AS 14.43.170 - 14.43.175 as if the loans were made under 10 those applicable provisions. 11 * Sec. 22. AS 14.43.172(a) is amended to read: 12 (a) For a borrower to be eligible for a loan under AS 14.43.170 - 14.43.175, 13 the borrower must be, or be about to be, enrolled in a postsecondary institution on at 14 least a half-time basis and must be 15 (1) a resident of this state 16 (A) attending or about to attend a postsecondary institution that 17 has been approved by and has executed a program participation agreement 18 with the commission; or 19 (B) attending or about to attend an approved federal 20 guaranteed student [FAMILY EDUCATION] loan institution; or 21 (2) physically present in this state and attending or about to attend a 22 federal guaranteed student [AN APPROVED FEDERAL FAMILY EDUCATION] 23 loan institution located in this state. 24 * Sec. 23. AS 14.43.172(g) is amended to read: 25 (g) A borrower who is attending a postsecondary institution in this state that 26 has been approved by the commission but is not an approved federal guaranteed 27 student [FEDERAL FAMILY EDUCATION] loan institution must also comply with 28 and meet any other requirements established by the commission. 29 * Sec. 24. AS 14.43.173(a) is amended to read: 30 (a) In a school year, the corporation may finance [COMMISSION MAY 31 MAKE] a loan to an eligible borrower under AS 14.43.170 - 14.43.175 attending an
01 eligible postsecondary institution not to exceed 02 (1) $14,000 [$8,500] to an eligible undergraduate student attending a 03 college or university; 04 (2) $15,000 [$9,500] to an eligible graduate student attending a college 05 or university; 06 (3) $8,000 [$6,500] to an eligible student attending a career education 07 program. 08 * Sec. 25. AS 14.43.173(b) is amended to read: 09 (b) The corporation may finance [COMMISSION MAY NOT AWARD] 10 loans made under AS 14.43.170 - 14.43.175 to a borrower in an amount that is not 11 [FOR] more than 12 (1) a total of $56,000 [$42,500] for undergraduate study; 13 (2) a total of $60,000 [$47,500] for graduate study; or 14 (3) a combined total of $87,000 [$60,000] for undergraduate and 15 graduate study. 16 * Sec. 26. AS 14.43.173 is amended by adding a new subsection to read: 17 (d) The commission shall determine a borrower's loan award amount for a 18 specific school year based on a student's on-time, half-time, and full-time student 19 status and may not exceed the limits established in this section or the borrower's costs 20 of attendance. 21 * Sec. 27. AS 14.43.175 is amended to read: 22 Sec. 14.43.175. Repayment of loans. A borrower's obligation to commence 23 repayment of the principal of and interest on a loan under AS 14.43.170 - 14.43.175 24 begins not more than six months following the borrower's completion or other 25 termination of the postsecondary program or the date that the borrower ceases to be 26 enrolled on at least a half-time basis. [THE COMMISSION SHALL SET THE 27 REPAYMENT TERMS OF A LOAN UNDER AS 14.43.170 - 14.43.175.] 28 * Sec. 28. AS 14.43.400 is amended to read: 29 Sec. 14.43.400. Purpose; creation. There is created the Alaska 30 [ALASKADVANTAGE] education grant program to provide financial assistance to 31 eligible students to enable them to attend, or continue their attendance at,
01 postsecondary educational institutions. Funds designated by the corporation or 02 appropriated for this program may be used as matching funds for the state's 03 participation in the federal grant program under 20 U.S.C. 1070c - 1070c-4. 04 * Sec. 29. AS 14.43.405(a) is amended to read: 05 (a) The Alaska [ALASKADVANTAGE] education grant program created 06 under AS 14.43.400 - 14.43.420 shall be administered by the executive director of the 07 commission. 08 * Sec. 30. AS 14.43.410(a) is amended to read: 09 (a) The funds for the Alaska [ALASKADVANTAGE] education grant 10 program may be allocated to eligible students in accordance with [THE PROVISIONS 11 OF THE FEDERAL GRANT PROGRAM UNDER 20 U.S.C. 1070C - 1070C-4 12 AND] regulations adopted under AS 14.42.030(e), AS 14.43.105, [AND] 14.43.405, 13 and 14.43.415. 14 * Sec. 31. AS 14.43.415(c) is amended to read: 15 (c) The commission shall adopt regulations to establish terms and conditions 16 [A PRIORITIZATION PROCESS] for awarding grants under AS 14.43.400 - 17 14.43.420 and to establish the amounts to be awarded for on-time, full-time, and 18 half-time student status. 19 * Sec. 32. AS 14.43.420(a) is amended to read: 20 (a) A grant made under AS 14.43.400 - 14.43.420 may not be in an amount 21 that exceeds $4,000 [LESS THAN $500 NOR MORE THAN $3,000] for each school 22 year. 23 * Sec. 33. AS 14.43.420(c) is amended to read: 24 (c) A student may receive not more than a total of $16,000 [$12,000] in grants 25 awarded under AS 14.43.400 - 14.43.420. 26 * Sec. 34. AS 14.43.420 is amended by adding a new subsection to read: 27 (d) The commission may apply the amounts awarded under AS 14.43.400 - 28 14.43.420 to a state match required by federal grant programs under 20 U.S.C. 1070c- 29 2. 30 * Sec. 35. AS 14.43.620(a) is repealed and reenacted to read: 31 (a) The teacher education revolving loan fund is created for the purpose of
01 making education loans to students selected under AS 14.43.600 - 14.43.700. The fund 02 consists of money or assets appropriated or transferred to the commission for deposit 03 into the fund, money or assets deposited into the fund by the commission, and 04 earnings on investments of money held in the fund. 05 * Sec. 36. AS 14.43.620 is amended by adding a new subsection to read: 06 (c) The commission may make a new loan under this section only if sufficient 07 money or assets are available in the fund established under (a) of this section. If no 08 new loans are issued in a fiscal year under this subsection, the commission shall use 09 deposits for the year in the succeeding year. 10 * Sec. 37. AS 14.43.640 is amended by adding a new subsection to read: 11 (g) The commission shall set the interest rate on a teacher education loan 12 made from the teacher education revolving loan fund established under AS 14.43.620. 13 * Sec. 38. AS 14.43.740(a) is amended to read: 14 (a) The provisions of AS 14.43.100, 14.43.120(a) - (c), (m), and (r) - (u), 15 14.43.122, 14.43.135, 14.43.145 - 14.43.155, 14.43.173, and 14.43.910 - 14.43.990 16 apply to a loan made under AS 14.43.710 - 14.43.750. 17 * Sec. 39. AS 14.43.750(a) is amended to read: 18 (a) A person may apply for and obtain a family education loan on behalf of a 19 family member if 20 (1) the borrower and the family member 21 (A) are residents [IS A RESIDENT] of the state at the time of 22 application for the loan; for purposes of this paragraph, a borrower and family 23 member qualify [QUALIFIES] as residents [A RESIDENT] of the state if the 24 borrower and the family member have [HAS] been physically present in the 25 state for at least one year immediately before the time of application for the 26 loan with the intent to remain indefinitely or, if not physically present in the 27 state, the borrower and family member have [HAS] not declared or 28 established residency in another state, intend [INTENDS] to return 29 permanently to the state, and the absence meets the requirements imposed 30 under AS 14.43.125(a)(3)(C)(i) - (vi); 31 (B) satisfies the requirements of AS 14.43.125(a)(6) - (9);
01 (2) the family member 02 (A) is enrolled as a full-time student in a career education, 03 associate, baccalaureate, or graduate degree program; or 04 (B) is a graduate of a high school or the equivalent, or 05 scheduled for graduation from a high school within six months, who, at the 06 time of loan disbursement, will be enrolled in compliance with (A) of this 07 paragraph; and 08 (3) neither the borrower nor the family member 09 (A) is delinquent or has ever been in default on a loan 10 previously awarded by the commission unless the defaulted loan has been 11 voluntarily paid in full; 12 (B) is past due on a child support obligation established by 13 court order or by the child support services agency under AS 25.27.160 - 14 25.27.220 at the time of application or loan disbursement; 15 (C) has, within the previous five years, had a loan discharged 16 or written off by the commission for any reason. 17 * Sec. 40. AS 14.43.915(a) is amended to read: 18 (a) The Alaska [ALASKADVANTAGE] education grant account is created 19 as an account in the general fund. Money may be appropriated to the account from the 20 Alaska higher education investment fund under AS 37.14.750 and from other sources. 21 The commission may use the money in the account to pay grants awarded under 22 AS 14.43.400 - 14.43.420 and to pay the cost of administration of the Alaska 23 education grant program created under AS 14.43.400. 24 * Sec. 41. AS 14.43.990 is amended by adding a new paragraph to read: 25 (7) "on-time student" means an undergraduate who is enrolled and is in 26 regular attendance at classes for 15 or more semester hours of credit or the equivalent 27 during the semester; any combination of semester hours of credit or the equivalent 28 aggregating to the requisite number of semester hours and undertaken during a 29 semester at two or more public or private institutions of higher education constitutes 30 on-time student status. 31 * Sec. 42. AS 14.48.030(b) is amended to read:
01 (b) Except as provided under AS 14.48.165, the commission may exempt the 02 following educational programs, and educational institutions only providing programs 03 exempt under (a) of this section and this subsection, from some or all of the provisions 04 of this chapter: 05 (1) a program operated by a state or a political subdivision of a state; 06 (2) instruction sponsored by a bona fide trade, business, labor, 07 professional, or fraternal association or organization, recognized by the commission, 08 and conducted only for that association's or organization's membership; 09 (3) nonprofit postsecondary educational institutions offering 10 undergraduate or graduate educational programs, from a facility in this state, that are 11 acceptable for credit toward an associate, bachelor's, or graduate degree; 12 (4) a program that is provided without a fee, other than the actual cost 13 of materials, to students; 14 (5) a program that does not offer education credentials; 15 (6) a short course of study that is not more than 15 [10] days or 120 16 [80] hours in duration; 17 (7) a program offered within the state by an out-of-state institution that 18 is authorized to operate by the state in which it is located and is nationally or 19 regionally accredited; 20 (8) a program or institution that is regulated by another agency or 21 political subdivision of the state regarding the quality of course contents, facilities, and 22 operation. 23 * Sec. 43. AS 14.48.050 is amended to read: 24 Sec. 14.48.050. Powers and duties of commission. The commission shall 25 (1) establish minimum criteria consistent with AS 14.48.060 including 26 quality of education, ethical and business practices, health and safety, and fiscal 27 responsibility that applicants for authorization to operate, or for an agent's permit, 28 must meet before the authorization or permit is issued; 29 (2) receive, investigate, and act upon applications for authorization to 30 operate postsecondary educational institutions and applications for agent's permits; 31 (3) maintain a list of postsecondary educational institutions and agents
01 authorized to operate in the state under this chapter; 02 (4) keep current and make available as public information the list of 03 institutions and agents; 04 (5) enter into interstate reciprocity agreements [WITH SIMILAR 05 AGENCIES IN OTHER STATES,] if, in the judgment of the commission, the 06 agreements will be helpful in carrying out the purposes of this chapter; 07 (6) receive and maintain as a permanent file, copies of academic 08 records maintained in accordance with AS 14.48.060(b)(6); 09 (7) adopt regulations and procedures necessary or appropriate for the 10 conduct of its work and the implementation of this chapter under AS 44.62 11 (Administrative Procedure Act); 12 (8) investigate on its own initiative or in response to a complaint 13 lodged with it, persons subject to, or reasonably believed by the commission to be 14 subject to, the jurisdiction of this chapter; and in connection with the investigation 15 subpoena persons, books, records, or documents related to the investigation; require 16 answers in writing under oath to questions propounded by the commission and 17 administer oaths or affirmations to persons in connection with the investigation; and, 18 for the purpose of examination at all reasonable times, shall have access to, and the 19 right to copy, documentary evidence of a corporation that is under investigation or 20 being proceeded against; 21 (9) exercise other necessary powers and duties in conformity with the 22 provisions of this chapter that, in the judgment of the commission, are necessary to 23 carry out the provisions of this chapter. 24 * Sec. 44. AS 14.48.165(b) is amended to read: 25 (b) A student attending a postsecondary educational institution and who is 26 physically present on the campus of the postsecondary educational institution 27 shall sign a document provided by the institution indicating that the student has 28 received 29 (1) an immunization against meningococcal disease; or 30 (2) the notice described under (a) of this section. 31 * Sec. 45. AS 14.43.120(f), 14.43.120(v), 14.43.174, 14.43.410, 14.43.415(b), 14.43.620(b),
01 and 14.43.740(g) are repealed. 02 * Sec. 46. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 TEACHER EDUCATION LOAN INTEREST RATE; TRANSITION; 05 APPLICABILITY. (a) AS 14.43.640(g), added by sec. 37 of this Act, applies to loans made 06 under AS 14.43.640 on or after the effective date of this Act. 07 (b) The Alaska Student Loan Corporation shall set the interest rate on a loan made 08 under AS 14.43.640 before the effective date of this Act and on loans made to a borrower who 09 was issued a loan before the effective date of this Act under AS 14.43.640 that are financed 10 by the corporation and are not funded from the teacher education revolving loan fund under 11 AS 14.43.620. 12 * Sec. 47. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 ALASKADVANTAGE GRANT PROGRAM; REGULATIONS. To the extent 15 current regulations are consistent with this Act, the regulations previously adopted by the 16 Alaska Commission on Postsecondary Education implementing the AlaskAdvantage 17 education grant program created under AS 14.43.400, as that section read before the 18 amendment in sec. 28 of this Act, shall be construed to apply to the Alaska education grant 19 program under AS 14.43.400 - 14.43.420, as amended by secs. 28 - 34 of this Act, until the 20 regulations are amended to change the name as provided in this Act. 21 * Sec. 48. This Act takes effect immediately under AS 01.10.070(c).