02/09/2004 01:39 PM Senate HES

                   SB 277-STUDENT LOAN PROGRAMS                                                                             
                                                                                                                              
MS.  DIANE  BARRANS,  Executive  Director,  Alaska  Commission  on                                                              
Postsecondary   Education  (ACPE,   "Commission")  spoke   to  the                                                              
concerns  that had been  brought up  by committee  members at  the                                                              
previous meeting  [meeting of  2/4/04].   She addressed the  first                                                              
concern  by  referencing  Section  4,  page  3,  regarding  Alaska                                                              
Student Loan  Corporation's (ASLC)  authority to finance  projects                                                              
of the  state with  the proceeds  of bond  issues.  This  supports                                                              
the Corporation's  intent to, over  a three-year period,  return a                                                              
substantial  amount  of  the  original   capital  that  the  state                                                              
contributed to start  up the Corporation.  To remedy  concern that                                                              
language  was  overly   broad  and  could  lead  to   putting  the                                                              
Corporation  in a financially  untenable position  in the  future,                                                              
Ms. Barrans recommended  adding Subsection (g), [AS  14.42.220] to                                                              
cap the aggregate  amount; the total the Corporation  could issue,                                                              
with respect to (a)(3) would be $280 million.                                                                                   
                                                                                                                                
MS.  BARRANS  said  the  second  concern  expressed  by  committee                                                              
members  pertained  to  the  Commission's   limited  authority  to                                                              
prioritize  four occupation categories  and how,  in the  event of                                                              
an  unforeseen  emergency,  the  Commission  would  not  have  the                                                              
authority  to  prioritize  grant  money  to  individuals  pursuing                                                              
careers outside of  those categories.  The remedy  to this concern                                                              
was to  remove the limiting section,  the language in  Section 21,                                                              
lines  28 -  29  [health,  human services,  education,  or  public                                                              
safety].   She  noted that  conforming  changes would  need to  be                                                              
made  to Section  24,  reflecting  that  the language  defined  in                                                              
paragraph  (3)  had  been  removed.   Paragraph  (4)  would  read,                                                              
"occupation  or profession"  because  the term,  "occupational  or                                                              
professional field"  would be removed.  She said  these constitute                                                              
the committee  substitute (CS)  [which was  currently en  route to                                                              
the HESS committee].                                                                                                            
                                                                                                                                
MR. JASON  HOOLEY, staff  to Senator  Dyson, informed CHAIR  DYSON                                                              
and members that CS would arrive during today's hearing.                                                                        
                                                                                                                                
CHAIR DYSON  said he  would suspend  the hearing  on SB 277  until                                                              
the arrival of the CS, later in the meeting.                                                                                    
                                                                                                                                
                   SB 277-STUDENT LOAN PROGRAMS                                                                             
                                                                                                                                
CHAIR DYSON  announced that  the proposed CS  had arrived  and the                                                              
committee would return to SB 277.                                                                                               
                                                                                                                                
SENATOR  WILKEN moved  to report  the CS  for SB  277 (version  D)                                                              
[labeled  23-GS2003\D,   Cook,  2/9/04]  out  of   committee  with                                                              
individual recommendations and the attached fiscal notes.                                                                       
                                                                                                                                
SENATOR GREEN brought  up a point of order regarding  adopting the                                                              
CS before moving the bill out.                                                                                                  
                                                                                                                                
SENATOR WILKEN  moved and asked  unanimous consent that  the prior                                                              
motion be withdrawn.                                                                                                            
                                                                                                                                
CHAIR DYSON  acknowledged that there  was no objection and  it was                                                              
so ordered.                                                                                                                     
                                                                                                                                
SENATOR WILKEN  moved and asked  unanimous consent that  version D                                                              
be adopted as the working document for SB 277.                                                                                  
                                                                                                                                
CHAIR  DYSON asked  if there  was  any objection.   Hearing  none,                                                              
version D was before the committee.                                                                                             
                                                                                                                                
MS.  BARRANS  informed  the  committee  that  she  had  previously                                                              
failed to  mention a change and  wanted members to be  apprised of                                                              
that change  before  proceeding with  the vote.   She referred  to                                                              
page 11,  line 24,  and said that  the prior  version of  the bill                                                              
had  established  a  severe  shortage  at a  vacancy  rate  of  10                                                              
percent or  greater.  She  said since the  scope of the  potential                                                              
prioritization  group was  being expanded,  raising  that rate  an                                                              
additional 5  percent would be  prudent; she had recommended  that                                                              
change as well.                                                                                                                 
                                                                                                                                
CHAIR DYSON noted that he had been alerted to that change.                                                                      
                                                                                                                                
SENATOR  WILKEN  moved  to  report   CSSB  277,  version  D,  from                                                              
committee  with  individual recommendations  and  attached  fiscal                                                              
notes.                                                                                                                          
                                                                                                                                
CHAIR  DYSON  asked  if  there was  any  objection.    Seeing  and                                                              
hearing none, it was so ordered.                                                                                                
                                                                                                                                
CHAIR DYSON  added that the purview  of the HESS committee  was to                                                              
evaluate  what SB  277  does for  education,  while the  financial                                                              
implications  - which  are significant  - would  be dealt with  in                                                              
the next committee of referral.