04/29/2004 09:05 AM Senate FIN

                                                                                                                                
     SENATE BILL NO. 393                                                                                                        
     "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."                                                                                 
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken stated  that this bill would allow the University to                                                            
garnish an  individual's Permanent  Fund Dividend (PFD) for  tuition                                                            
and other University  of Alaska debts  owed by an individual.  A new                                                            
committee  substitute   has  been  developed  to  address   concerns                                                            
regarding  the ranking  of  the University's  claims  in regards  to                                                            
other claims against one's PFD.                                                                                                 
                                                                                                                                
Co-Chair  Green moved  to adopt  the Version  23-LS1945\D  committee                                                            
substitute as the working document.                                                                                             
                                                                                                                                
There being no  objection, the Version "D" committee  substitute was                                                            
adopted as the working document.                                                                                                
                                                                                                                                
Co-Chair Wilken  explained that the ranking concern  is addressed in                                                            
Section  2, on  page two  beginning  on line  ten  of the  committee                                                            
substitute. The University  is now ranked in sixth place rather than                                                            
in fourth  place as originally  presented.  Both the University  and                                                            
the Alaska Permanent Fund  Corporation are agreeable to this change.                                                            
                                                                                                                                
Co-Chair  Green  moved  to  report  the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There  being  no  objection,  CS SB  393  (FIN)  was  REPORTED  from                                                            
Committee a new $100,000  fiscal note, dated April 28, 2004 from the                                                            
University of Alaska and  a new $15,000 fiscal note, dated April 25,                                                            
2004 from the Department of Revenue.                                                                                            
                                                                                                                                
AT EASE: 3:12 PM / 3:13 PM