HB  28-TEACHER/STATE EMPLOYEE STUDENT LOAN PRGRM                                                                    
                                                                                                                                
8:04:21 AM                                                                                                                    
                                                                                                                                
CO-CHAIR STORY announced  that the first order  of business would                                                               
be  HOUSE  BILL NO.  28,  "An  Act  establishing a  student  loan                                                               
repayment pilot program; and providing for an effective date."                                                                  
                                                                                                                                
8:06:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHWANKE asked if  similar types of loan repayment                                                               
programs have occurred in the past.                                                                                             
                                                                                                                                
CO-CHAIR  STORY answered  that the  Alaska State  Legislature has                                                               
used funds  like this for  Washington, Wyoming,  Alaska, Montana,                                                               
and  Idaho (WWAMI)  regional medical  programs  and directed  the                                                               
rest of  her answer  to Ms.  Thomas of  the Alaska  Commission on                                                               
Postsecondary Education.                                                                                                        
                                                                                                                                
8:07:31 AM                                                                                                                    
                                                                                                                                
KERRY THOMAS,  Acting Executive Director, Gave  invited testimony                                                               
on HB  28.  She said  that the Alaska State  Legislature has used                                                               
the  higher  education  investment   fund  to  supplement  Public                                                               
Employee's Retirement System (PERS) indebtedness in the past.                                                                   
                                                                                                                                
8:09:58 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HIMSCHOOT asked if the  State of Alaska has historically                                                               
offered a  loan forgiveness program  and further  questioned what                                                               
the parameters of such a loan forgiveness program were.                                                                         
                                                                                                                                
MS.  THOMAS  answered  that  the  state  of  Alaska  did  have  a                                                               
postsecondary  loan  forgiveness program  that  was  axed in  the                                                               
1980's.  She said that  the original loan forgiveness program was                                                               
not sustainable  due to the amount  of people who took  the loan,                                                               
left Alaska, and never repaid the loan.                                                                                         
                                                                                                                                
8:12:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  UNDERWOOD asked  why  HB 28  has an  out-of-state                                                               
residency requirement and emphasized  that Alaska residents often                                                               
do  not  claim residency  out-of-state  while  they are  studying                                                               
outside of Alaska.                                                                                                              
                                                                                                                                
CO-CHAIR  STORY answered  that the  purpose HB  28's out-of-state                                                               
residency requirement is to keep  original residents in Alaska or                                                               
bring those people back home.                                                                                                   
                                                                                                                                
8:15:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE UNDERWOOD asked if  someone wanting to receive the                                                               
proposed benefits of HB 28 could  rely on their continual flow if                                                               
they  are   meant  to  be   appropriated  by  the   Alaska  State                                                               
Legislature and asked how the  Alaska Commission on Postsecondary                                                               
Education (ACPE) would  judge the efficacy of a  pilot program of                                                               
HB 28.                                                                                                                          
                                                                                                                                
MS. THOMAS answered that the  ACPE had not yet established policy                                                               
guidelines for a pilot program of  the proposed policies of HB 28                                                               
and said  that the  ACPE would  develop a  method of  judging the                                                               
efficacy of the proposed policies of HB 28.                                                                                     
                                                                                                                                
8:19:32 AM                                                                                                                    
                                                                                                                                
CO-CHAIR STORY announced that HB 28 would be held over.