Legislature(1995 - 1996)
1996-05-02 House Journal
Full Journal pdf1996-05-02 House Journal Page 4244 SB 301 The following was read the second time: CS FOR SENATE BILL NO. 301(FIN) am An Act relating to postsecondary education; and providing for an effective date. with the: Journal Page FIN RPT 1DP 4NR 1AM 4102 ZERO FISCAL NOTE (DOE) 4102 4 SEN FISCAL NOTES (REV, 3-DOE) 4/19/96 4102 SENATE FISCAL NOTE #3 (DOE) 4/2/96 4102 1996-05-02 House Journal Page 4245 SB 301 Amendment No. 1 was offered by Representative Bunde: Page 4, following line 26: Insert a new bill section to read: "* Sec. 7. AS14.42.200(9) is amended to read: (9) collect from a borrower amounts owed with respect to a student loan held by the corporation ªHAS PURCHASEDß;" Renumber the following bill sections accordingly. Page 5, line 13, following "corporation,": Insert "used to pay the costs of administration of the fund," Page 5, line 14: Delete "and" Insert "ªANDß" Page 5, lines 14 and 15: Delete "AS 14.43.090 - 14.43.325, 14.43.600 - 14.43.700, or 14.43.710 - 14.43.790." Insert "AS 14.43, and used to pay the costs of administering the loans and of collecting delinquent loans if those costs are not recovered from the borrower ªAS14.43.090 - 14.43.325, 14.43.600 - 14.43.700, or 14.43.710 - 14.43.790ß." Page 8, line 17: Delete "commission" Insert "corporation ªCOMMISSIONß" Page 12, line 7: Delete "scholarship" Insert "student ªSCHOLARSHIPß" Page 13, line 18, following "14.43.325": Insert "and for the purposes allowed under AS 14.42.210" Page 14, line 7: Delete "scholarship" Insert "student ªSCHOLARSHIPß" 1996-05-02 House Journal Page 4246 SB 301 Page 15, line 15, following "14.43.700": Insert "and for the purposes allowed under AS14.42.210" Page 15, line 29, following "boards": Insert "," Page 16, lines 1 - 4: Delete "loans; ªTHE FORM MUST INCLUDE A REQUIREMENT THATß the applicant must provide ªSUPPLYß a high school academic transcript and a statement of intent to enter a teaching career at the elementary or secondary school level in the state." Insert "loans ª; THE FORM MUST INCLUDE A REQUIREMENT THAT THE APPLICANT SUPPLY A HIGH SCHOOL ACADEMIC TRANSCRIPT AND A STATEMENT OF INTENT TO ENTER A TEACHING CAREER AT THE ELEMENTARY OR SECONDARY SCHOOL LEVEL IN THE STATEß." Page 16, lines 13 - 15: Delete "(4) submit to the local school board an application on a form provided by the corporation ªCOMMISSIONß under AS14.43.630(a)(2); an application may be submitted six months before graduation from high school; and" Insert "(4) submit to the local school board an application on a form provided by the corporation ªCOMMISSIONß under AS14.43.630(a)(2); the applicant shall supply a high school transcript and a statement of intent to enter a teaching career at the elementary or secondary school level in the state ªAN APPLICATION MAY BE SUBMITTED SIX MONTHS BEFORE GRADUATION FROM HIGH SCHOOLß; and" Page 16, lines 28 - 30: Delete "to pay the costs of collecting family education loans that are in default if those costs are not recovered from the family, and to pay the costs of administering the account" Insert "and for the purposes allowed under AS14.42.210 ªTO PAY THE COSTS OF COLLECTING FAMILY EDUCATION LOANS THAT ARE IN DEFAULT IF THOSE COSTS ARE NOT 1996-05-02 House Journal Page 4247 SB 301 RECOVERED FROM THE FAMILY, AND TO PAY THE COSTS OF ADMINISTERING THE ACCOUNTß" Page 17, following line 6: Insert a new bill section to read: "* Sec. 41. AS14.43.730 is amended to read: Sec. 14.43.730. ADMINISTRATION. The family education loan program shall be administered by the corporation [COMMISSIONß under regulations that it adopts." Renumber the following bill sections accordingly. Page 18, line 21: Delete "or the start" Page 20, line 25, following "Corporation": Delete "ªCOMMISSION ON POSTSECONDARY EDUCATIONß" Insert "or the predecessor Commission on Postsecondary Education" Page 20, line 28, following "Corporation": Delete "ªCOMMISSION ON POSTSECONDARY EDUCATIONß" Insert "or the predecessor Commission on Postsecondary Education" Page 20, line 30: Delete "commission" Insert "corporation ªCOMMISSIONß" Page 21, line 9: Delete "commission" Insert "corporation ªCOMMISSIONß" Page 21, line 10: Delete "commission" Insert "corporation ªCOMMISSIONß" Page 21, line 18: Delete "sec. 46" Insert "sec. 48" 1996-05-02 House Journal Page 4248 SB 301 Page 22, line 8: Delete "sec. 58" Insert "sec. 60" Page 22, line 14: Delete "sec. 58" Insert "sec. 60" Page 23, line 2: Delete "Section 56(c)" Insert "Section 58(c)" Page 23, line 3: Delete "sec. 57" Insert "sec. 59" Representative Bunde moved and asked unanimous consent that Amendment No. 1 be adopted. Objection was heard. The question being: Shall Amendment No. 1 be adopted? The roll was taken with the following result: CSSB 301(FIN) am Second Reading Amendment No. 1 YEAS: 36 NAYS: 0 EXCUSED: 0 ABSENT: 4 Yeas: Austerman, Barnes, Brice, Brown, Bunde, Davies, B.Davis, G.Davis, Elton, Finkelstein, Foster, Green, Grussendorf, Hanley, Ivan, James, Kelly, Kohring, Kott, Kubina, Long, Mackie, Martin, Masek, Navarre, Nicholia, Ogan, Parnell, Phillips, Porter, Robinson, Rokeberg, Therriault, Toohey, Vezey, Williams Absent: Moses, Mulder, Sanders, Willis And so, Amendment No. 1 was adopted. 1996-05-02 House Journal Page 4249 SB 301 Amendment No. 2 was offered by Representative Elton: Page 2, following line 11: Insert new bill sections to read: "* Sec. 2. AS14.07.020(a) is amended by adding a new paragraph to read: (16) administer the provisions of AS14.48 (regulation of postsecondary educational institutions). * Sec. 3. AS14.07.020 is amended by adding a new section to read: (c) The department has the following functions, advisory to the governing boards of institutions of public and private higher education in the state, to the governor, the legislature, and to other appropriate state and federal officials: (1) coordinate the development of comprehensive plans for the orderly, systematic growth of public and private postsecondary education, including community colleges and occupational education, in the state and submit recommendations on the need for, and location of, new facilities and programs; (2) advise as to the functions and purposes of the colleges and universities, both public and private, in the state and counsel as to the programs appropriate to each; and (3) review and advise as to the working of all consortia and other cooperative agreements between the institutions of higher education in the state that are parties to them. * Sec. 4. AS14.07.030 is amended by adding a new paragraph to read: (14) establish task forces, committees, or subcommittees, not necessarily consisting of department officers or employees, to advise and assist the department in carrying out its postsecondary functions assigned by AS14.07.020(a) and (c), and federal statute. The department may contract with, or use, existing institutions of higher education or other individuals or organizations to make studies, conduct surveys, submit recommendations, or otherwise contribute to the work of the department. * Sec. 5. AS14.07 is amended by adding new sections to read: Sec. 14.07.032. CONSORTIA. All parties that are signatory to a consortium agreement between the University of Alaska and a private university or college must abide by a decision rendered by the department when disagreements arise or exist between the parties. For purposes of this section and AS14.07.020, 1996-05-02 House Journal Page 4250 SB 301 "consortium" means a cooperative arrangement between two or more public or private institutions of higher education specified in agreements or memoranda of understanding to permit sharing of facilities, instructional opportunities, and other educational services in such a way that the integrity of each institution party to the consortium is preserved while at the same time the institutions cooperatively plan the academic calendar, scheduling, use of personnel and facilities, and educational programs and offerings to the maximum advantage of the students and faculties of the institutions that are parties to a consortium. Sec. 14.07.033. COLLECTION OF DATA. The department may require the institutions of public and private higher education and other institutions of postsecondary education in the state to submit data on costs, selection and retention of students, enrollments, plant capacities and use, and other matters pertinent to effective planning and coordination, and shall furnish information concerning these matters to the governor, to the legislature, and to other state and federal agencies as requested by them." Renumber the following bill sections accordingly. Page 2, lines 22 - 25: Delete all material and insert: "Sec. 14.42.120. CORPORATION GOVERNING BODY. (a) The corporation shall be governed by a board of directors consisting of the commissioner of revenue, the commissioner of administration, a person representing the Department of Education appointed by the governor, and four members of the public appointed by the governor. The governor's appointees shall serve at the pleasure of the governor for staggered four-year terms." Page 4, following line 26: Insert a new bill section to read: "* Sec. 11. AS14.42.200(9) is amended to read: (9) collect from a borrower amounts owed with respect to a student loan held by the corporation ªHAS PURCHASEDß;" Renumber the following bill sections accordingly. 1996-05-02 House Journal Page 4251 SB 301 Page 5, line 13, following "corporation,": Insert "used to pay the costs of administration of the fund," Page 5, lines 14 and 15: Delete "AS 14.43.090 - 14.43.325, 14.43.600 - 14.43.700, or 14.43.710 - 14.43.790." Insert "AS 14.43, and used to pay the costs of administering the loans and of collecting delinquent loans if those costs are not recovered from the borrower ªAS14.43.090 - 14.43.325, 14.43.600 - 14.43.700, or 14.43.710 - 14.43.790ß." Page 8, line 17: Delete "commission" Insert "corporation ªCOMMISSIONß" Page 12, line 7: Delete "scholarship" Insert "student ªSCHOLARSHIPß" Page 15, line 20, following "loans": Insert "and for the purposes allowed under AS14.42.210" Page 16, lines 1 - 4: Delete "loans; ªTHE FORM MUST INCLUDE A REQUIREMENT THATß the applicant must provide ªSUPPLYß a high school academic transcript and a statement of intent to enter a teaching career at the elementary or secondary school level in the state." Insert "loans ª; THE FORM MUST INCLUDE A REQUIREMENT THAT THE APPLICANT SUPPLY A HIGH SCHOOL ACADEMIC TRANSCRIPT AND A STATEMENT OF INTENT TO ENTER A TEACHING CAREER AT THE ELEMENTARY OR SECONDARY SCHOOL LEVEL IN THE STATEß." Page 16, lines 13 - 15: Delete "(4) submit to the local school board an application on a form provided by the corporation ªCOMMISSIONß under AS14.43.630(a)(2); an application may be submitted six months before graduation from high school; and" 1996-05-02 House Journal Page 4252 SB 301 Insert "(4) submit to the local school board, at least three months before graduation from high school, an application on a form provided by the corporation ªCOMMISSIONß under AS14.43.630(a)(2); the applicant shall supply a high school transcript and a statement of intent to enter a teaching career at the elementary or secondary school level in the state ªAN APPLICATION MAY BE SUBMITTED SIX MONTHS BEFORE GRADUATION FROM HIGH SCHOOLß; and" Page 16, lines 28 - 30: Delete "to pay the costs of collecting family education loans that are in default if those costs are not recovered from the family, and to pay the costs of administering the account" Insert "and for the purposes allowed under AS14.42.210 ªTO PAY THE COSTS OF COLLECTING FAMILY EDUCATION LOANS THAT ARE IN DEFAULT IF THOSE COSTS ARE NOT RECOVERED FROM THE FAMILY, AND TO PAY THE COSTS OF ADMINISTERING THE ACCOUNTß" Page 17, following line 6: Insert a new bill section to read: "* Sec. 45. AS14.43.730 is amended to read: Sec. 14.43.730. ADMINISTRATION. The family education loan program shall be administered by the corporation [COMMISSIONß under regulations that it adopts." Renumber the following bill sections accordingly. Page 17, line 25, through page 19, line 13: Delete all material and insert new bill sections to read: "* Sec. 49. AS14.48.010(a) is amended to read: (a) It is the purpose of this chapter to provide for the protection, education, and welfare of the citizens of the state, its postsecondary educational institutions, and its students, by (1) establishing minimum standards concerning quality of education, ethical and business practices, health and safety, and fiscal responsibility, to protect against substandard, transient, unethical, deceptive, or fraudulent institutions and practices; (2) prohibiting the granting of false or misleading educational credentials; 1996-05-02 House Journal Page 4253 SB 301 (3) regulating the use of academic terminology in designating educational institutions; (4) prohibiting misleading literature, advertising, solicitation, or representation by educational institutions or their agents; (5) providing for the preservation of essential academic records; and (6) providing certain rights and remedies to the public and the department ªCOMMISSIONß necessary to carry out the purposes of this chapter. * Sec. 50. AS14.48.020 is amended to read: Sec. 14.48.020. AUTHORIZATION AND PERMITS REQUIRED. A person may not (1) operate a postsecondary educational institution in the state unless the institution has a valid authorization to operate issued under this chapter or is exempt from the provisions of this chapter; (2) offer itself or through an agent enrollment or instruction in, or the granting of educational credentials from, a postsecondary educational institution, whether the institution is in or outside the state, unless the agent is a natural person and has a currently valid agent's permit issued under this chapter or is exempt from the provisions of this chapter; (3) accept contracts or enrollment applications of prospective students from an agent who does not have a current permit as required by this chapter; however, the department [COMMISSIONß may adopt regulations to permit the rendering of legitimate public information services without a ªTHEß permit; (4) instruct or educate, ªORß offer to instruct or educate, enroll or offer to enroll, contract or offer to contract or award an educational credential, or contract with an institution or person to do so, in or outside the state, unless that person is in compliance with the minimum standards set out in AS14.48.060, the criteria established by the department ªCOMMISSIONß under AS14.48.050(1), and the regulations adopted by the department [COMMISSIONß under AS14.48.050(7); (5) use the term "university" or "college" without authorization to do so from the department ªCOMMISSIONß; (6) grant, or offer to grant, educational credentials ª,ß without authorization to do so from the department [COMMISSIONß. 1996-05-02 House Journal Page 4254 SB 301 * Sec. 51. AS14.48.030(b) is amended to read: (b) The following educational programs or services and educational institutions are exempt from the provisions of this chapter or portions of them, as determined by the department [COMMISSIONß: (1) education sponsored by a bona fide trade, business, labor, professional, or fraternal association or organization, recognized by the department, ªCOMMISSIONß and conducted solely for that association's or organization's membership ª,ß or offered on a no-fee basis; (2) education solely avocational or recreational in nature and institutions offering avocational or recreational education exclusively; (3) education offered by charitable organizations, recognized by the department ªCOMMISSIONß, if the education is not advertised or promoted as leading toward educational credentials; (4) nonprofit postsecondary educational institutions offering undergraduate or graduate educational programs conducted in the state, but not by correspondence, that ªWHICHß are acceptable for credit toward an associate, bachelor's, or graduate degree; (5) postsecondary educational institutions established, operated, and governed by the United States, a state, or its political subdivisions. * Sec. 52. AS14.48.040 is amended to read: Sec. 14.48.040. DEPARTMENT ªCOMMISSIONß TO ADMINISTER CHAPTER. The commissioner of education [ALASKA COMMISSION ON POSTSECONDARY EDUCATIONß shall administer this chapter and may hire necessary personnel. The department ªCOMMISSIONß may obtain from departments, commissions, and other state agencies information and assistance needed to carry out the provisions of this chapter. * Sec. 53. AS14.48.050 is amended to read: Sec. 14.48.050. POWERS AND DUTIES OF DEPARTMENT ªCOMMISSIONß. The department [COMMISSIONß shall (1) establish minimum criteria consistent with AS14.48.060 including quality of education, ethical and business practices, health and safety, and fiscal responsibility that applicants 1996-05-02 House Journal Page 4255 SB 301 for authorization to operate, or for an agent's permit, must meet before the authorization or permit is issued; (2) receive, investigate, and act upon applications for authorization to operate postsecondary educational institutions and applications for agent's permits; (3) maintain a list of postsecondary educational institutions and agents authorized to operate in the state under this chapter; (4) keep current and make available as public information the list of institutions and agents; (5) enter into interstate reciprocity agreements with similar agencies in other states ª,ß if in the judgment of the department ªCOMMISSIONß the agreements will be helpful in carrying out the purposes of this chapter; (6) receive and maintain as a permanent file, copies of academic records maintained in accordance with AS14.48.060(b)(6); (7) adopt regulations and procedures necessary or appropriate for the conduct of its work and the implementation of this chapter under AS44.62 (Administrative Procedure Act); (8) investigate on its own initiative, or in response to a complaint lodged with it, persons subject to ª,ß or reasonably believed by the department ªCOMMISSIONß to be subject to ª,ß the jurisdiction of this chapter; ªANDß in connection with the investigation subpoena persons, books, records, or documents related to the investigation; require answers in writing under oath to questions propounded by the department ªCOMMISSIONß and administer oaths or affirmations to persons in connection with the investigation; and, for the purpose of examination at all reasonable times, shall have access to, and the right to copy, documentary evidence of a corporation that is under investigation or being proceeded against; (9) exercise other necessary powers and duties in conformity with the provisions of this chapter that, in the judgment of the department ªCOMMISSIONß, are necessary to carry out the provisions of this chapter. * Sec. 54. AS14.48.060 is amended to read: Sec. 14.48.060. MINIMUM STANDARDS. (a) In establishing the criteria required by AS14.48.050(1), the department ªCOMMISSIONß shall require compliance with the minimum standards set out in (b) of this section. 1996-05-02 House Journal Page 4256 SB 301 (b) A postsecondary educational institution must be maintained and operated ª,ß or, in the case of a new institution, must demonstrate that it can be maintained and operated so that (1) the quality and content of each course or program of instruction, training, or study ªARE SUCH ASß may reasonably and adequately achieve the stated objective for which the course or program is offered; (2) the institution has or has access to adequate space, equipment, instructional materials, and personnel where applicable to achieve the stated objective of the course or program of study and to provide education of good quality; (3) the education or experience qualifications of directors, administrators, supervisors, and instructors ªARE SUCH ASß may reasonably ensure that the students will receive education consistent with the objectives of the course or program of study; (4) the institution provides a catalog or brochure containing information describing the programs offered, program objectives, length of program, schedule of tuition, fees, ªANDß all other charges and expenses necessary for completion of the course of study, cancellation and refund policies, and other material facts concerning the institution and the program or course of instruction that are reasonably likely to affect the decision of the student to enroll, together with any other disclosures specified by the department ªCOMMISSIONß by regulation; and that this information is provided to prospective students before enrollment; (5) upon satisfactory completion of training, the student is given appropriate educational credentials by the institution, indicating that the course of instruction or study has been satisfactorily completed by the student; (6) adequate records are maintained by the institution to show attendance, progress ª,ß or grades, and that satisfactory standards are enforced relating to attendance, progress, and performance; (7) the institution is maintained and operated in compliance with all pertinent ordinances and laws relating to the safety and health of persons upon the premises of the institution; (8) the institution is financially sound and capable of fulfilling its commitments to students; (9) neither the institution nor its agents engage in advertising, sales, collection, credit, or other practices that [WHICHß are false, deceptive, misleading, or unfair; 1996-05-02 House Journal Page 4257 SB 301 (10) the chief executive officer, trustees, directors, owners, administrators, supervisors, staff, and instructors of the institution are of good reputation and character and have not been convicted of a violation of AS14.48.020, ªORß 14.48.150, ªORß AS45.50.471 - 45.50.561, or a comparable law in another state or province; (11) the student housing owned, maintained, or approved by the institution is appropriate, safe, and adequate; (12) the institution has a fair and equitable cancellation and refund policy; and (13) the charges set by the institution for tuition, fees, books, and supplies are fair and equitable. (c) The department may accept accreditation [ACCREDITATIONß by national or regional accrediting agencies recognized by the department ªCOMMISSION MAY BE ACCEPTED BY THE COMMISSIONß as evidence of compliance with the minimum standards established by this section and the criteria established under AS14.48.050(1). However, the department ªCOMMISSIONß may require further evidence and make further investigation as ªMAY BEß necessary. If the institution as a whole is not accredited, accreditation [ACCREDITATIONß by a recognized, specialized accrediting agency may be accepted as evidence of compliance only as to the portion or program of an institution accredited by the accrediting agency ªIF THE INSTITUTION ASA WHOLE IS NOT ACCREDITEDß. * Sec. 55. AS14.48.070(a) is amended to read: (a) Each postsecondary educational institution desiring to operate in this state shall apply to the department [COMMISSIONß, upon forms provided by the department [COMMISSIONß. The application must ªSHALLß be accompanied by a catalog or brochure published, or proposed to be published by the institution, containing the information specified in AS14.48.060(b)(4). The application shall also be accompanied by evidence of a surety bond or other deposit as required by AS14.48.100, and by the required fees. * Sec. 56. AS14.48.070(b) is amended to read: (b) Following review of the application and after necessary investigation of the applicant the department ªCOMMISSIONß shall either grant or deny authorization to operate to the applicant. 1996-05-02 House Journal Page 4258 SB 301 A grant of authorization to operate may be on those terms and conditions the department ªCOMMISSIONß may prescribe. * Sec. 57. AS14.48.070(c) is amended to read: (c) The authorization to operate must be in a form approved by the department ªCOMMISSIONß and must include (1) the date of issuance, effective date, and term of approval; (2) the name and address of the institution; (3) the authority for approval; (4) any condition or limitation of the authorization, as considered necessary by the department ªCOMMISSIONß. * Sec. 58. AS14.48.070(f) is amended to read: (f) At least 60 days before the expiration of its ªANß authorization to operate, the institution shall complete and file with the department ªCOMMISSIONß an application form for renewal [OF ITS AUTHORIZATION TO OPERATEß. The renewal application shall be reviewed and acted upon as provided for an original application. * Sec. 59. AS14.48.070(g) is amended to read: (g) An institution not yet in operation when its application for authorization to operate is filed may not begin operation until receipt of authorization. An institution in operation when its application for authorization to operate is filed may continue operation until its application is acted upon by the department [COMMISSIONß. The department ªCOMMISSIONß may issue provisional authorization to operate, containing limitations as to time, procedures, functions, or other conditions as the department [COMMISSIONß considers necessary. * Sec. 60. AS14.48.080(a) is amended to read: (a) A person desiring to solicit or perform the services of an agent ª,ß in this state ª,ß shall apply to the department [COMMISSIONß upon forms provided by the department [COMMISSIONß. The application must ªSHALLß be accompanied by evidence of the good reputation and character of the applicant and must state the institution that the applicant intends to represent. An agent representing more than one institution must obtain a separate agent's permit for each institution represented. However, when an agent represents institutions having a common ownership, only one agent's permit is required. If an institution that the applicant intends to represent 1996-05-02 House Journal Page 4259 SB 301 does not have authorization to operate in this state, the application must ªSHALLß be accompanied by the information required of institutions making application for authorization. The application for an agent's permit must ªSHALLß also be accompanied by evidence of a surety bond or other deposit as required by AS14.48.100, and by payment of the required fees. * Sec. 61. AS14.48.080(c) is amended to read: (c) Following review of the application and any further information submitted by the applicant, and investigation of the applicant as the department ªCOMMISSIONß considers necessary, the department ªCOMMISSIONß shall either grant or deny an agent's permit to the applicant. * Sec. 62. AS14.48.080(d) is amended to read: (d) The agent's permit must be in a form approved by the department ªCOMMISSIONß and must include (1) the date of issuance, effective date, and term; (2) the correct name and address of the agent; (3) the institution or institutions that the agent is authorized to represent. * Sec. 63. AS14.48.080(f) is amended to read: (f) At least 60 days before the expiration of an agent's permit, the agent shall complete and file with the department [COMMISSIONß an application form for renewal. The renewal application shall be reviewed and acted upon as provided for an original application. * Sec. 64. AS14.48.090 is repealed and reenacted to read: Sec. 14.48.090. FEES. The department shall adopt regulations that establish the amount and manner of payment of fees for applications, authorizations, permits, and renewals under this chapter. * Sec. 65. AS14.48.100 is amended to read: Sec. 14.48.100. BONDS. (a) At the time application is made for authorization to operate, or for renewal of an authorization to operate, the department ªCOMMISSIONß may require the postsecondary educational institution to file a surety bond in the amount determined by the department ªCOMMISSIONß. The amount shall be determined by the number of students the institution seeks to enroll. The amount of the surety bond shall be reexamined by the department ªCOMMISSIONß upon each renewal of the authorization to operate to determine if a larger or 1996-05-02 House Journal Page 4260 SB 301 smaller bond would be appropriate to ensure adequate protection for the students or enrollees, ªORß their parents or guardians, or classes thereof. The bond shall be executed by the applicant as principal and by a surety company qualified and authorized to do business in this state. The bond ªANDß shall be conditioned to provide indemnification to any student or enrollee, ªORß the student's or enrollee's parent or guardian, or class thereof ª,ß determined to have suffered loss or damage as a result of a postsecondary educational institution's ªANß act or practice that [WHICHß is a violation of this chapter ªBY THE POSTSECONDARY EDUCATIONAL INSTITUTIONß and that the bonding company shall pay a final nonappealable order of the department ªCOMMISSIONß or judgment of a court of this state having jurisdiction, upon receipt of written notification of the order or judgment. The aggregate liability of the surety for the bond of the institution or agent involved in the order or judgment may not, in any event, exceed the amount of the bond. (b) An application for an agent's permit must ªSHALLß be accompanied by a surety bond in the amount determined by the department ªCOMMISSIONß to be necessary for the protection of the students or enrollees, ªORß their parents or guardians, or classes of these, or to reflect an institution's volume of business in the state. The bond shall be executed by the applicant as principal and by a surety company qualified and authorized to do business in this state. The bond shall be conditioned to provide indemnification to any student or enrollee, ªORß the student's or enrollee's parents or guardian, or class of these, determined to have suffered loss or damage as a result of an agent's act or practice that ªWHICHß is a violation of this chapter ªBY THE AGENTß. (c) The surety bond to be filed under this section must [SHALLß cover the period of the authorization to operate or the agent's permit, as appropriate, except when a surety is released as provided in this subsection. A surety on a bond filed under this section may be released from that bond after the surety serves written notice of the release to the department ªCOMMISSIONß and to the bonded agent or institution 45 days before the release. However, the release does not discharge or otherwise affect a claim filed by a student or enrollee, ªORß a parent or guardian, or class thereof, before or after the release for loss or damage 1996-05-02 House Journal Page 4261 SB 301 resulting from an act or practice that ªWHICHß is a violation of this chapter alleged to have occurred while the bond was in effect or for an institution's ceasing operations during the term for which tuition has been paid while the bond was in force. (d) Authorization for an institution to operate and an agent's permit shall be suspended by operation of law when the institution or agent is no longer covered by a surety bond as required by this section. However, the department ªCOMMISSIONß shall give the institution or agent, or both, at least 30 days written notice before the release of the surety, ªTO THE EFFECTß that the authorization or permit shall be suspended by operation of law until another surety bond is filed in the same manner as, and in a like amount to, the bond being terminated. (e) In lieu of the surety bond required in (a) and (b) of this section, the applicant may file with the department [COMMISSIONß a cash deposit or other negotiable security, acceptable to the department ªCOMMISSIONß, in the amount specified for bonds. * Sec. 66. AS14.48.110 is amended to read: Sec. 14.48.110. DENIAL. If the department [COMMISSIONß, upon review of an application for authorization to operate ª,ß or an application for an agent's permit, determines that the application should be denied, the department [COMMISSIONß shall notify the applicant, setting out the reasons in writing. AS44.62 (Administrative Procedure Act) governs the review of a denial under this section. * Sec. 67. AS14.48.120 is amended to read: Sec. 14.48.120. REVOCATION. (a) An authorization to operate or an agent's permit may be revoked or conditioned if the department ªCOMMISSIONß has reasonable cause to believe that the holder of the authorization or permit is violating or has violated this chapter, ªORß AS45.50.471, ªORß regulations adopted under this chapter, or AS45.50.491. Except as provided in (b) of this section, AS44.62 (Administrative Procedure Act) governs the procedure for a revocation, review of a revocation, or other action under this section. (b) Authorization for an institution to operate, and a permit for an agent representing that institution, are revoked 30 days after the institution ceases to operate. The department ªCOMMISSIONß shall give the institution and the agent 15 days' written notice, by 1996-05-02 House Journal Page 4262 SB 301 certified mail, sent return receipt requested, to the last addresses of the institution and agent. (c) The institution and the agent may appeal a revocation under (b) of this section by filing an appeal in writing with the department ªCOMMISSIONß within 30 days after the revocation." Renumber the following bill sections accordingly. Page 19, following line 17: Insert new bill sections to read: "* Sec. 69. AS14.48.130 is amended to read: Sec. 14.48.130. COMPLAINTS. (a) A person claiming damage or loss as a result of an act or practice by a postsecondary educational institution or its agent, or both, that ªWHICHß is a violation of this chapter or of the regulations adopted under this chapter may file with the department ªCOMMISSIONß a complaint against the institution or against its agent or both. The complaint must state ªSHALL SET OUTß the alleged violation and must ªSHALLß contain other information as may be required by the department ªCOMMISSIONß. A complaint may also be filed by the department ªCOMMISSIONß on its own motion or the attorney general. A complainant may file with the department ªCOMMISSIONß as a representative of a class of complainants. (b) The department ªCOMMISSIONß shall investigate the complaint and may attempt to effect a settlement by persuasion and conciliation. The department ªCOMMISSIONß may consider a complaint after 30 days written notice by registered mail to the institution or agent, or both, giving notice of a time and place for hearing on the complaint. The hearing shall be conducted in accordance with AS44.62 (Administrative Procedure Act). (c) If, upon the evidence at a hearing, the department [COMMISSIONß finds that a postsecondary educational institution or its agent, or both, has engaged in, or is engaging in, an act or practice that ªWHICHß violates this chapter or the regulations adopted under this chapter, the department ªCOMMISSIONß shall serve upon the institution or agent or both ª,ß an order requiring the institution or agent or both to cease and desist from the act or practice. If the department ªCOMMISSIONß finds that the complainant, or class of complainants, has suffered loss or damage 1996-05-02 House Journal Page 4263 SB 301 as a result of the act or practice, the department ªCOMMISSIONß may also award the complainant, or class of complainants, full or partial restitution for the damage or loss and may impose the penalties provided for in AS14.48.190. The department [COMMISSIONß may also, based on its own investigation and the evidence adduced at the hearing, begin an action to revoke an institutions authorization to operate or an agents permit. * Sec. 70. AS14.48.140 is amended to read: Sec. 14.48.140. JUDICIAL REVIEW. A final administrative order issued by the department ªCOMMISSIONß is subject to judicial review under AS44.62 (Administrative Procedure Act). * Sec. 71. AS14.48.150 is amended to read: Sec. 14.48.150. PRESERVATION OF RECORDS. (a) If a postsecondary educational institution proposes to discontinue its operation, the chief administrative officer of the institution shall file with the department ªCOMMISSIONß the original or legible true copies of academic records of the institution as specified by the department ªCOMMISSIONß. The records must include that academic information customarily required by colleges when considering students for transfer or advanced study and the academic record of each former student. (b) If it appears to the department ªCOMMISSIONß that records of an institution discontinuing its operations are in danger of being destroyed or otherwise made unavailable to the department ªCOMMISSIONß, the department ªCOMMISSIONß may seize the records ª,ß under an order of the superior court. The department ªCOMMISSIONß shall maintain a permanent file of records coming into its possession under this section. * Sec. 72. AS14.48.180 is amended to read: Sec. 14.48.180. ENFORCEMENT: INJUNCTION. (a) The attorney general at the request of the department [COMMISSIONß or on motion of the attorney general, may bring an action or proceeding in a court of competent jurisdiction for the enforcement of the provisions of this chapter. (b) When it appears to the department ªCOMMISSIONß that a person is, is about to, or has violated a provision of this chapter or a regulation adopted under this chapter, the department [COMMISSIONß may, on its own motion or on the written complaint of any person, file a petition for injunction in the name of the department ªCOMMISSIONß in a court of competent 1996-05-02 House Journal Page 4264 SB 301 jurisdiction against the person for the purpose of enjoining the violation or for an order directing compliance with the provisions of this chapter. It is not necessary that the department ªCOMMISSIONß allege or prove that it has no adequate remedy at law. The right of injunction provided in this section is in addition to other legal remedies available to the department ªCOMMISSIONß and is in addition to the right of criminal prosecution. However, the department [COMMISSIONß may not obtain a temporary restraining order without notice to the person affected. * Sec. 73. AS14.48.190 is amended to read: Sec. 14.48.190. VIOLATIONS: CIVIL PENALTY. A person who violates the provisions of AS14.48.020, or who fails or refuses to deposit with the department ªCOMMISSIONERß the records required by AS14.48.150, is subject to a civil penalty of not more than $1,000 for each violation. Each days failure to comply with the provisions of AS14.48.020 and 14.48.150 constitutes a separate violation. The fine may be imposed by the department ªCOMMISSIONß in an administrative proceeding or by a court of competent jurisdiction. * Sec. 74. AS14.48.200 is amended to read: Sec. 14.48.200. CRIMINAL VIOLATION. A person who wilfully violates the provisions of AS14.48.020 or who wilfully fails or refuses to deposit with the department ªCOMMISSIONß the records required by AS14.48.150 is guilty of a misdemeanor and, upon conviction, is punishable by a fine of not more than $1,000 or by imprisonment for not more than six months, or by both. Each days failure to comply is a separate violation. * Sec. 75. AS14.48.210(2) is amended to read: (2) "agents permit" means a nontransferable written authorization issued to a natural person by the department that [COMMISSION WHICHß allows that person to solicit or enroll a resident of the state for education in a postsecondary educational institution; * Sec. 76. AS14.48.210(3) is amended to read: (3) "authorization to operate" means approval of the department ªCOMMISSIONß to operate or to contract to operate a postsecondary educational institution in the state; * Sec. 77. AS16.43.340(a) is amended to read: (a) In addition to entry permits and interim-use permits, the commission may issue educational entry permits to public, private, 1996-05-02 House Journal Page 4265 SB 301 or denominational educational institutions, career, or vocational programs accredited or authorized by the Department of Education ªOR ACCREDITED INSTITUTIONS, CAREER, OR VOCATIONAL PROGRAMS APPROVED BY THE ALASKA COMMISSION ON POSTSECONDARY EDUCATIONß, or full- time nonprofit residential child care facilities licensed by the Department of Health and Social Services, division of social services, if (1) the program is offered to students at the junior high school level or above; (2) the issuance of an educational entry permit is reasonably necessary to the instruction of students under courses offered by the applicant for the educational entry permit; (3) the program is offered by an institution that is located in the state and has been in operation for at least two years; and (4) the institution offering the program is not a correspondence institution." Renumber the following bill sections accordingly. Page 20, lines 9 and 10: Delete "Commission on Postsecondary Education (AS14.48.035) [(AS14.42.015)ß" Insert "Student Loan Corporation ªCOMMISSION ON POSTSECONDARY EDUCATION (AS14.42.015)ß" Page 21, following line 10: Insert a new bill section to read: "* Sec. 84. AS44.62.330(43) is amended to read: (43) Department of Education ªALASKA COMMISSION ON POSTSECONDARY EDUCATIONß under AS14.48 as to denial of applications and revocation of authorizations and permits;" Renumber the following bill sections accordingly. Page 21, line 18: Delete "sec. 46" Insert "sec. 64" 1996-05-02 House Journal Page 4266 SB 301 Page 22, line 8: Delete "sec. 58" Insert "sec. 89" Page 22, line 14: Delete "sec. 58" Insert "sec. 89" Page 23, line 2: Delete "Section 56(c)" Insert "Section 87(c)" Page 23, line 3: Delete "sec. 57" Insert "sec. 88" Representative Elton moved and asked unanimous consent that Amendment No. 2 be adopted. Representative Bunde objected. The question being: Shall Amendment No. 2 be adopted? The roll was taken with the following result: CSSB 301(FIN) am H Second Reading Amendment No. 2 YEAS: 14 NAYS: 23 EXCUSED: 0 ABSENT: 3 Yeas: Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, Kubina, Long, Mackie, Navarre, Nicholia, Robinson, Willis Nays: Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley, Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Ogan, Parnell, Phillips, Porter, Rokeberg, Therriault, Toohey, Vezey, Williams Absent: Moses, Mulder, Sanders And so, Amendment No. 2 was not adopted. 1996-05-02 House Journal Page 4267 SB 301 Amendment No. 3 was offered by Representative Navarre: Page 2, following line 25: Delete Two members of the legislature shall serve as ex officio nonvoting members of the board of directors. The two ex officio nonvoting members shall include one member of the senate appointed by the president of the senate and one member of the house appointed by the speaker of the house of representatives. Page 3, following line 24: Insert a new bill section to read: * Sec. 4. AS 14.42.130 is amended to read: Sec. 14.42.130 MEETINGS OF THE BOARD (a) The board shall meet at the call of its chair ªCHAIRMANß and at other times as the board may determine in accordance with its regulations. (b) Public notice of a meeting of the board at which the issuance of corporation bonds is authorized shall be provided at least 24 hours before the meeting. (c) At the same time that notice of a meeting is given to the public, the Corporation shall also give notice of the meeting to the president of the senate and to the speaker of the house. At a meeting of the board, the president, or his or her designee, and the speaker, or his or her designee, shall have the ability to attend and participate in the discussion of items on the agenda for that meeting but shall not be considered a member of the board for any purpose. Renumber the following sections accordingly. Representative Navarre moved and asked unanimous consent that Amendment No. 3 be adopted. Representative Martin objected. The question being: Shall Amendment No. 3 be adopted? The roll was taken with the following result: 1996-05-02 House Journal Page 4268 SB 301 CSSB 301(FIN) am H Second Reading Amendment No. 3 YEAS: 14 NAYS: 25 EXCUSED: 0 ABSENT: 1 Yeas: Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, Kubina, Long, Mackie, Navarre, Nicholia, Robinson, Willis Nays: Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley, Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Moses, Ogan, Parnell, Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey, Williams Absent: Mulder And so, Amendment No. 3 was not adopted. Amendment No. 4 was offered by Representative Robinson: Page 2, following line 11: Insert a new bill section to read: "* Sec. 2. AS 14.42.025 is amended to read: Sec. 14.42.025. MEETINGS, RULES, VOTES REQUIRED. The commission shall prescribe its own rules of procedure. The commission shall meet at least twice a year ªONCE QUARTERLYß at a time and place determined by the chair [CHAIRMANß, and at other times and places as the chair [CHAIRMANß, or a majority of the members of the commission, consider necessary. A quorum is a majority of the members of the commission. The votes of the commission members shall be recorded, and effective action requires the affirmative vote of a majority of the commission members present. A commission member may not, with respect to a matter before the commission, vote for or on behalf of, or in any way exercise the vote of, another member of the commission." Renumber the following bill sections accordingly. 1996-05-02 House Journal Page 4269 SB 301 Page 21, line 18: Delete "sec. 46" Insert "sec. 47" Page 22, line 8: Delete "sec. 58" Insert "sec. 59" Page 22, line 14: Delete "sec. 58" Insert "sec. 59" Page 23, line 2: Delete "Section 56(c)" Insert "Section 57(c)" Page 23, line 3: Delete "sec. 57" Insert "sec. 58" Representative Robinson moved and asked unanimous consent that Amendment No. 4 be adopted. Representative Bunde objected. The question being: Shall Amendment No. 4 be adopted? The roll was taken with the following result: CSSB 301(FIN) am H Second Reading Amendment No. 4 YEAS: 17 NAYS: 22 EXCUSED: 0 ABSENT: 1 Yeas: Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, Hanley, Kott, Kubina, Long, Mackie, Navarre, Nicholia, Robinson, Sanders, Willis Nays: Barnes, Bunde, G.Davis, Foster, Green, Ivan, James, Kelly, Kohring, Martin, Masek, Moses, Mulder, Ogan, Parnell, Phillips, Porter, Rokeberg, Therriault, Toohey, Vezey, Williams 1996-05-02 House Journal Page 4270 SB 301 Absent: Austerman And so, Amendment No. 4 was not adopted. Representative Vezey moved and asked unanimous consent that CSSB301(FIN) am H be considered engrossed, advanced to third reading and placed on final passage. Representative Kubina objected. The question being: Shall CSSB 301(FIN) am H be advanced to third reading on the same day? The roll was taken with the following result: CSSB 301(FIN) am H Second Reading Advance to Third Reading YEAS: 26 NAYS: 14 EXCUSED: 0 ABSENT: 0 Yeas: Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley, Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Moses, Mulder, Ogan, Parnell, Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey, Williams Nays: Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf, Kubina, Long, Mackie, Navarre, Nicholia, Robinson, Willis And so, lacking the necessary 30 votes, CSSB 301(FIN) am H failed to advance and will be in third reading on the May 3, 1996, calendar.