05/10/2004 11:20 AM House FIN

CS FOR SENATE BILL NO. 393(FIN)                                                                                               
                                                                                                                                
     An Act relating  to default on tuition,  fees, and other                                                                   
     charges  of the University  of Alaska  and to  claims on                                                                   
     permanent  fund dividends for  tuition, fees,  and other                                                                   
     charges  of  the  University   of  Alaska  that  are  in                                                                   
     default.                                                                                                                   
                                                                                                                                
PETE KELLY, DIRECTOR, STATE RELATIONS,  UNIVERSITY OF ALASKA,                                                                   
stated that  SB 393 would add  the University to the  list of                                                                   
exemptions for  Permanent Fund  dividends when there  is debt                                                                   
owed to the  State.  Currently, criteria exist  in statute by                                                                   
which it can  be collected.  The bill clarifies  the purposes                                                                   
of collecting bad debt from tuition  and department fees.  In                                                                   
policy,  there  are  protections  built  in notice.    It  is                                                                   
anticipated that  the legislation  will allow the  University                                                                   
to collect  approximately  $400 thousand  dollars this  year.                                                                   
To implement the legislation,  the first year costs amount to                                                                   
approximately  $100 thousand dollars,  with $40 thousand  per                                                                   
year used to collect the fees after that.                                                                                       
                                                                                                                                
Representative  Stoltze  inquired  if the  only  other  State                                                                   
agency  that   has  the  authority  was  the   Child  Support                                                                   
Enforcement Agency  (CSEA).  Mr.  Kelly pointed  out language                                                                   
on Page 2, Line 22, indicating how broad that statute is.                                                                       
                                                                                                                                
Representative  Croft asked  why  it could  not be  collected                                                                   
under Section (5), Page 2, Lines  18-20.  He thought that the                                                                   
difference between Sections #5  & #6 was that they would have                                                                   
to go through the  expense of small claims action  to get the                                                                   
judgment  rather  than the  administrative  appeals  process.                                                                   
Mr. Kelly  agreed that  was correct  and that the  procedures                                                                   
are already in statute.                                                                                                         
                                                                                                                                
Co-Chair  Harris asked  if the  University's Student  Council                                                                   
had issued an opinion.   Mr. Kelly responded that  it had not                                                                   
yet been proposed to them.  Co-Chair  Harris recommended that                                                                   
discussion occur.                                                                                                               
                                                                                                                                
Representative Foster MOVED to  report CS SB 393 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS SB  393 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass"  recommendation   and  with  fiscal  note   #1  by  the                                                                   
University of Alaska and fiscal  note #2 by the Department of                                                                   
Revenue.