Legislature(2021 - 2022)BUTROVICH 205
04/21/2021 09:00 AM Senate EDUCATION
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB94 | |
| SB34 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 10 | TELECONFERENCED | |
| *+ | SB 34 | TELECONFERENCED | |
| += | SB 94 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 94-EDUCATION & SUPPLEMENTAL LOAN PROGRAMS
9:05:40 AM
CHAIR HOLLAND announced the consideration of SENATE BILL NO. 94
"An Act relating to the education loan program and Alaska
supplemental education loan program; and providing for an
effective date."
[SB 94 was previously heard on 3/5/21 and 4/19/21.]
9:05:52 AM
CHAIR HOLLAND opened public testimony on SB 94.
9:06:12 AM
CHAD HUTCHINSON, Director of State Relations, University of
Alaska, Anchorage, Alaska, presented SB 94 on behalf of the
administration. He stated that the University of Alaska (UA)
supports SB 94. UA believes it is wise for the Alaska Student
Loan Corporation (ASLC) to have flexibility in determining loan
amounts for eligible borrowers. SB 94 will also allow borrowers
more opportunities to finance their loans. Further, this bill
aligns with UA President Pitney's vision to boost enrollment and
reduce the university's dependency on state funding moving
forward. He characterized it as a win-win for all parties.
9:07:15 AM
CHAIR HOLLAND, after first determining no one wished to testify,
closed public testimony on SB 94.
9:07:32 AM
CHAIR HOLLAND solicited amendments to SB 94.
9:07:38 AM
SENATOR HUGHES moved to adopt Amendment 1, [work order 32-
GS1644\A.1].
AMENDMENT 1
32-GS1644\A.1
Klein
4/20/21
OFFERED IN THE SENATE BY SENATOR HUGHES
TO: SB 94
Page 3, following line 9:
Insert a new bill section to read:
"* Sec. 6. AS 14.43 is amended by adding a new
section to read:
Sec. 14.43.940. Economies of scale. When
administering the education loan program under
AS 14.43.091 - 14.43.160 and the Alaska
supplemental education loan program under
AS 14.43.170 - 14.43.175, the commission shall
attempt to achieve economies of scale."
Renumber the following bill section accordingly.
9:07:43 AM
CHAIR HOLLAND objected for discussion purposes.
9:07:47 AM
SENATOR HUGHES explained that Amendment 1 makes it clear that
the goal of the loan program expansion is to achieve economies
of scale. During the first hearing on SB 94, members expressed
concern about extending eligibility to students who were not
currently Alaska residents. She said at the 4/19/21 hearing and
through conversations with Ms. Efird, it became clear that this
will help Alaska residents because expanding the pool achieves
economies of scale that can help keep rates lower. It will also
help boost ASLC's revenues, she said. She acknowledged that she
would prefer that the Amendment 1 language was crafted
differently but there was limited time to work on it.
CHAIR HOLLAND noted that his office had not received the
amendments from Legislative Legal Services in time to post them
to BASIS prior to this meeting.
9:09:10 AM
SENATOR MICCICHE asked what Amendment 1 will accomplish except
to clarify the reason for the bill.
SENATOR HUGHES answered that it also would help keep the
commission mindful of what is beneficial to Alaskan students.
SENATOR STEVENS offered his understanding that the overall
effect of having more students in the loan program would be to
lower student loan rates.
SENATOR HUGHES deferred to Ms. Efird, but offered her belief
that the primary reason was to ensure that revenue flows through
the ASLC to help Alaskan students.
9:10:46 AM
CHAIR HOLLAND related his understanding that the state does not
want to increase the state's expenses to expand the loan program
but SB 94 would achieve the goal of making the program more
economical.
SENATOR HUGHES agreed. She pointed out that due to the high
credit score requirement for this program, it would not put the
state at risk but could expand the pool.
9:11:27 AM
CHAIR HOLLAND removed his objection. There being no further
objection Amendment 1 was adopted.
9:11:39 AM
SENATOR HUGHES moved to adopt Amendment 2, [work order 32-
GS1644\A.2]:
AMENDMENT 2
32-GS1644\A.2
Klein
4/20/21
OFFERED IN THE SENATE BY SENATOR HUGHES
TO: SB 94
Page 3, following line 9:
Insert a new bill section to read:
"* Sec. 6. AS 14.43 is amended by adding a new
section to read:
Sec. 14.43.940. Report to the legislature. Not
later than December 31 of each year, the commission
shall submit to the legislature a report evaluating
the benefit provided to Alaska students by the
education loan program under AS 14.43.091 - 14.43.160
and the Alaska supplemental education loan program
under AS 14.43.170 - 14.43.175. The commission shall
deliver the report to the senate secretary and the
chief clerk of the house of representatives and notify
the legislature that the report is available."
Renumber the following bill section accordingly.
9:11:44 AM
CHAIR HOLLAND objected for discussion purposes.
9:11:48 AM
SENATOR HUGHES explained that Amendment 2 was developed as a
result of the last hearing and in conversations with Ms. Efird.
She explained that it is similar to Amendment 1 such that it
would help ensure benefits go to Alaska students. It would
require ASLC to evaluate and report benefits to the legislature.
This essentially will trigger an annual review which Ms. Efird
indicated was likely to happen.
9:12:31 AM
CHAIR HOLLAND removed his objection. There being no further
objection, Amendment 2 was adopted.
9:12:47 AM
CHAIR HOLLAND asked for the will of the committee.
9:12:55 AM
SENATOR STEVENS moved to report SB 94, work order 32-GS1644\A as
amended, from committee with individual recommendations and
attached fiscal note(s).
CHAIR HOLLAND found no objection and CSSB 94(EDC) was reported
from the Senate Education Standing Committee.