03/08/2010 08:00 AM House EDUCATION

               HB 297-POSTSECONDARY SCHOLARSHIPS                                                                            
                                                                                                                                
9:38:04 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced that the  final order of business would be                                                               
HOUSE  BILL   NO.  297,  "An  Act   establishing  the  governor's                                                               
performance  scholarship program  and  relating  to the  program;                                                               
establishing  the  governor's  performance scholarship  fund  and                                                               
relating  to  the  fund;  relating  to  student  records;  making                                                               
conforming amendments; and providing for an effective date."                                                                    
                                                                                                                                
9:38:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON moved  CSHB 297,  26-GH2771\R, Mischel,                                                               
3/4/10.   There  being no  objection,  Version R  was before  the                                                               
committee.                                                                                                                      
                                                                                                                                
9:40:12 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  asked  Legislative Legal  and  Research  Services,                                                               
Legislative Affairs Agency, for comments on Version R.                                                                          
                                                                                                                                
9:40:31 AM                                                                                                                    
                                                                                                                                
JEAN MISCHEL, Attorney, Legislative  Legal and Research Services,                                                               
Legislative  Affairs   Agency,  said  that  legal   services  had                                                               
reviewed   the  changes   to  the   governor's  bill   to  ensure                                                               
consistency with  the drafting  rules established  by legislative                                                               
counsel.   To maintain that  consistency, new sections  have been                                                               
added to  HB 297.   She advised  that although  the Postsecondary                                                               
Education   Commission,  Department   of   Education  and   Early                                                               
Development,   may   find   the  section   pertaining   to   them                                                               
unnecessary,  the  other  changes are  consistent  with  drafting                                                               
rules.   As an example  of minor changes, she  directed attention                                                               
to page 1,  lines 10-11, to indicate the language  change from "a                                                               
student's permanent record" to  "the student's permanent record."                                                               
Also  in that  section  was a  change from  "any  errors" to  "an                                                               
error."   More significantly, a  new paragraph (18) was  added on                                                               
page 4, line 5.  Version R also  added a new section to Sec. 4 on                                                               
page 5, line 16.                                                                                                                
                                                                                                                                
9:43:26 AM                                                                                                                    
                                                                                                                                
MS. MISCHEL explained  the new section was not  reflective of any                                                               
amendment, but was a means  to include the governor's performance                                                               
scholarship in  a cross-reference found on  page 7, line 5.   The                                                               
new language  on page 7, line  5, added the range  of authorities                                                               
for  the   corporations  to  enter   into  agreements   with  the                                                               
Postsecondary  Education  Commission  to include  the  governor's                                                               
performance  scholarship.   This  authority  may  or may  not  be                                                               
necessary for  the agreements, but  it was deemed  appropriate to                                                               
include it in the section.                                                                                                      
                                                                                                                                
9:44:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.   WILSON  asked   for  clarification   on  the                                                               
referenced corporation.                                                                                                         
                                                                                                                                
9:45:27 AM                                                                                                                    
                                                                                                                                
MS.  MISCHEL responded  that the  referenced corporation  was the                                                               
student loan corporation.  In  further response to Representative                                                               
Peggy Wilson,  she explained that  legal services added  a cross-                                                               
reference  to the  existing student  loan corporation  authority,                                                               
"to incorporate  the governor's scholarship program,  so the only                                                               
change to  existing law ... was  add to the range  of authorities                                                               
for   entering  into   agreements   between   the  student   loan                                                               
corporation and the postsecondary [education] commission."                                                                      
                                                                                                                                
9:46:14 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  interjected that the  statutes for inclusion  in HB
 are  being expanded from  AS 14.43.091-14.43.750  to continue                                                               
through   14.43.890,   effectively   including   the   governor's                                                               
performance  scholarship  into  duties   that  the  student  loan                                                               
corporation administers.                                                                                                        
                                                                                                                                
MS.  MISCHEL concurred.   She  then said,  "All we  are doing  is                                                               
including the new governor's  scholarship program within existing                                                               
student loan corporation authority."                                                                                            
                                                                                                                                
9:47:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  asked whether  there were  substantive                                                               
changes in Version R.                                                                                                           
                                                                                                                                
9:47:45 AM                                                                                                                    
                                                                                                                                
MS.  MISCHEL  explained that  Version  R  incorporated the  seven                                                               
amendments  adopted by  the committee  in previous  hearings, and                                                               
made technical changes  to comply with drafting rules.   The only                                                               
technical change made  by her office which could  be construed as                                                               
substantive, was the  insertion into Sec. 4, which  did not exist                                                               
in Version A of the bill.                                                                                                       
                                                                                                                                
9:50:36 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  observed the  addition to Sec.  4 was  necessary as                                                               
the bill  was originally  drafted by the  Department of  Law, and                                                               
not by Legislative Legal and Research.                                                                                          
                                                                                                                                
9:51:13 AM                                                                                                                    
                                                                                                                                
MS.  MISCHEL stated  her comments  at this  time were  limited to                                                               
technical  changes, and  indicated that  beginning on  page 8,  a                                                               
series of  grammatical changes  were made.   On  page 18,  Sec. 8                                                               
provides  a necessary  cross-reference  to  AS 36.30.850(b)  that                                                               
allows  an  exception  to  the state  procurement  code  for  the                                                               
scholarships.   Furthermore, technical  changes were made  to the                                                               
existing law that would eliminate non-applicable paragraphs.                                                                    
                                                                                                                                
9:55:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER offered conceptual  Amendment 1 to Version                                                               
R,  effectively  repealing  Amendment  9 to  the  original  bill,                                                               
adopted on 2/26/10, and included in  Version R.  She advised that                                                               
this  action was  in  response to  written  testimony from  Diane                                                               
Barrans, Executive Director,  Postsecondary Education Commission,                                                               
dated 3/3/10  [available in the  committee packet].   She further                                                               
explained  that  the  cost of  the  unintended  consequence  from                                                               
Amendment 9 would  be greater than the value;  specifically, if a                                                               
student  received  an "over  award"  scholarship  they would  not                                                               
qualify for other aid.                                                                                                          
                                                                                                                                
9:57:12 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON objected for the purpose of discussion.                                                                            
                                                                                                                                
9:57:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  asked  where Amendment  9 appeared  in                                                               
Version R.                                                                                                                      
                                                                                                                                
9:57:44 AM                                                                                                                    
                                                                                                                                
MS. MISCHEL directed  attention to page 16, lines  14-16, and the                                                               
language to be  deleted by adopting conceptual  Amendment 1 which                                                               
read:   "less any scholarship award  payments previously expended                                                               
if the error, in the award of  the scholarship was not due to any                                                               
fault of the student."                                                                                                          
                                                                                                                                
9:58:25 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON removed  his  objection.   There  being no  further                                                               
objection,  conceptual Amendment  1  to HB  297,  Version R,  was                                                               
adopted.                                                                                                                        
                                                                                                                                
9:59:17 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  requested that the  committee finish its  review of                                                               
the  bill, and  stated  his intention  to pass  the  bill out  of                                                               
committee  by  the end  of  the  week.   Written  questions  were                                                               
solicited  from  the  committee  to   be  submitted  to  EED  for                                                               
comments.                                                                                                                       
                                                                                                                                
10:01:23 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON announced that HB 297 was held for further review.