02/19/2004 09:06 AM Senate FIN

                                                                                                                                
     CS FOR SENATE BILL NO. 277(HES)                                                                                            
     "An  Act relating to  the Alaska  Commission on  Postsecondary                                                             
     Education;  relating to the  Alaska Student Loan  Corporation;                                                             
     relating  to bonds of  the corporation;  relating to  loan and                                                             
     grant  programs of the  commission; relating  to an  exemption                                                             
     from the State Procurement Code regarding certain contracts of                                                             
     the commission or corporation;  making conforming changes; and                                                             
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This was  the second hearing  for this bill  in the Senate  Finance                                                             
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken communicated that additional work is required on an                                                             
amendment that was discussed during  the February 17, 2004 hearing;                                                             
and therefore,  it would not be  offered. It would be  addressed in                                                             
other committees' hearings as the bill progresses.                                                                              
                                                                                                                                
Senator B. Stevens  shared the understanding that bonds  associated                                                             
with this legislation were recently issued.                                                                                     
                                                                                                                                
DIANE BARRANS, Executive  Officer, Alaska Student Loan  Corporation                                                             
and  Executive Director,  The  Alaska Commission  on  Postsecondary                                                             
Education,   Department  of   Education   and  Early   Development,                                                             
explained,  "that Phase  One of  the three-year  return of  capital                                                             
plan"  included the  issuance of  bonds, supported  by  Corporation                                                             
"assets  that  were  already  free  and  clear  from  our  existing                                                             
indenture." Therefore, yesterday's  bond issuance, which received a                                                             
good financial rate, was not dependent on this legislation.                                                                     
                                                                                                                                
KEN  VASSAR,  Bond   Counsel,  Alaska  Student  Loan   Corporation,                                                             
testified via teleconference from an offnet site and concurred that                                                             
existing regulations allowed the issuance of the bonds in question.                                                             
This legislation  would allow the  Corporation to issue  additional                                                             
bonds.                                                                                                                          
                                                                                                                                
Senator B. Stevens asked whether  the $75 million bond package that                                                             
was just issued would accrue against the $280 million designated in                                                             
this bill.                                                                                                                      
                                                                                                                                
Ms. Barrans affirmed.                                                                                                           
                                                                                                                                
Co-Chair  Green  moved  to report  the  bill  from  Committee  with                                                             
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There  being  no objection,  CS  SB  277 (HES)  was  REPORTED  from                                                             
Committee with previous zero fiscal  note #1 from the Department of                                                             
Administration; previous zero fiscal note #2 from the Department of                                                             
Community and Economic Development; and a new $120,000 fiscal note,                                                             
dated February 12, 2004 from the  Department of Education and Early                                                             
Development.                                                                                                                    
                                                                                                                                
[NOTE: This bill  was returned to the Senate Finance  Committee for                                                             
further consideration. An additional hearing was conducted on March                                                             
22, 2004.]