04/16/2009 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 172(FIN)                                                                                                
                                                                                                                                
     "An Act relating to an investment  in the education loan                                                                   
     fund;  relating  to authority  for  the commissioner  of                                                                   
     revenue  to enter  into a  bond  purchase agreement  and                                                                   
     letter   of  credit   with  the   Alaska  Student   Loan                                                                   
     Corporation; and providing for an effective date."                                                                         
                                                                                                                                
10:07:48 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman  MOVED  to ADOPT  Work  Draft  26-GH1211\S,                                                                   
Cook, 4/15/09. Co-Chair Stedman OBJECTED for discussion.                                                                        
                                                                                                                                
Darwin Peterson,  Staff, Senator Bert Stedman,  detailed that                                                                   
the  work draft  would  make three  changes  in the  original                                                                   
bill. The first two changes are  found on page 3, sub-Section                                                                   
H, Lines 2-5,  will lessen the terms for investments,  from 5                                                                   
years to  4 years. The  third change  is found in  Section 3,                                                                   
page  3, line  15,  which requires  the  Alaska Student  Loan                                                                   
Corporation to  develop a proposal  for repayment  of student                                                                   
loans  during  the legislative  interim,  to  be reviewed  on                                                                   
January 19, 2010 by the legislature.                                                                                            
                                                                                                                                
Co-Chair  Stedman  pointed out  that  at  that the  time  the                                                                   
legislature would  consider forgiveness of student  loans for                                                                   
particular situations.                                                                                                          
                                                                                                                                
Mr. Peterson agreed that this  was Uncodified law, asking for                                                                   
the Alaska Student  Loan Corporation to provide  imput before                                                                   
legislation is drafted in the 2010 legislative session.                                                                         
                                                                                                                                
Co-Chair Stedman removed OBJECTION.                                                                                             
                                                                                                                                
10:10:28 AM                                                                                                                   
                                                                                                                                
Diane  Barrans, Executive  Director, Postsecondary  Education                                                                   
Commission,  Department of  Education  and Early  Development                                                                   
commented that  the department and the committee  should work                                                                   
to make  the program  maximally accessible  to Alaskans  with                                                                   
incentives   beyond  what  the   corporation  could   provide                                                                   
internally.                                                                                                                     
                                                                                                                                
Co-Chair Hoffman reminded of questions  delinquency rates and                                                                   
in-state and out-of-state loans  that had yet to be answered.                                                                   
                                                                                                                                
10:11:55 AM         AT EASE                                                                                                   
10:12:18 AM         RECONVENED                                                                                                
                                                                                                                                
Co-Chair   Stedman   requested   further   clarification   on                                                                   
committee  questions be  presented by  the department  in the                                                                   
proposal scheduled to be presented in January 2010.                                                                             
                                                                                                                                
Co-Chair Hoffman  MOVED to report  SCS CS HB 172(FIN)  out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal note.                                                                                                       
                                                                                                                                
10:13:20 AM         AT EASE                                                                                                   
10:13:39 AM         RECONVENED                                                                                                
                                                                                                                                
Co-Chair Hoffman WITHDREW the motion.                                                                                           
                                                                                                                                
Co-Chair  Hoffman  MOVED  to  request  resolution  for  title                                                                   
change. There being NO OBJECTION, it was so ordered.                                                                            
                                                                                                                                
Co-Chair Hoffman  MOVED to report  SCS CS HB 172(FIN)  out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
SCS CS HB 172(FIN)  was REPORTED out of Committee  with a "do                                                                   
pass" recommendation  and with attached indeterminate  fiscal                                                                   
note 3 by  the Department of Education and  Early Development                                                                   
and  indeterminate  fiscal  note   4  by  the  Department  of                                                                   
Revenue.                                                                                                                        
                                                                                                                                
10:14:53 AM