HOUSE BILL NO. 65                                                            
                                                                               
       "An Act establishing a loan guarantee and interest rate                 
       subsidy program for assistive technology."                              
                                                                               
  REPRESENTATIVE  BRIAN PORTER,  sponsor HB  65, testified  in                 
  support of the legislation.   He explained that HB  65 would                 
  provide  a  mechanism  to  use  federal funding  to  provide                 
  assistive  technology  opportunities  to   individuals  with                 
  disabilities.  The  state would guarantee 90  percent of the                 
  federal loan.   He emphasized  that the  program will  allow                 
                                                                               
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  disabled persons  to  buy  items that  can  assist  them  in                 
  becoming productive members of society.   The legislation is                 
  pointed to those who cannot afford the  technologies but are                 
  not poor  enough to  qualify  for welfare  assistance.   The                 
  program  would  be  administered by  individual  banks.   He                 
  emphasized that other states that have initiated the program                 
  have had a default rate of 5 to 5.5 percent.                                 
                                                                               
  In response  to  a question  by  Representative  Therriault,                 
  Representative  Porter  clarified  that  federal funding  is                 
  anticipated  at  $100.0  thousand  dollars  to  initiate the                 
  program.   He  clarified that  the  report required  by  the                 
  legislation would not be annual.                                             
                                                                               
  JERRY WEAVER, SENIOR VICE-PRESIDENT, NATIONAL BANK OF ALASKA                 
  testified  via  the  teleconference network.    He  spoke in                 
  support of HB 65.  He  observed that there are approximately                 
  20,000 persons with disabilities in Alaska.                                  
                                                                               
  STAN  RIDGEWAY,  DEPUTY  DIRECTOR,  DIVISION  OF  VOCATIONAL                 
  REHABILITATION, DEPARTMENT OF EDUCATION testified in support                 
  of HB  65.  He  noted that  the legislation provides  a loan                 
  guarantee  and  an  interest  rate  subsidy for  those  that                 
  qualify.  He anticipated that the program would be funded at                 
  $100.0 thousand dollars a year for four years though federal                 
  assistive technology funding.                                                
                                                                               
  Representative Brown asked  who would manage the loans.  Mr.                 
  Ridgeway   explained  that   the   Director  of   Vocational                 
  Rehabilitation  would  set up  a  loan committee  that would                 
  establish the guidelines and assure that funds are not over-                 
  committed.   The banking institutions  will administer their                 
  own loan funds.                                                              
                                                                               
  Representative Brown noted  that the Department of  Commerce                 
  and Economic Development  manages most  of the state's  loan                 
  programs.    Mr.  Ridgeway  stated  that the  Department  of                 
  Commerce and  Economic Development  is not  involved in  the                 
  program at this  time.   Representative Brown observed  that                 
  most  state  loan functions  have  been consolidated  in the                 
  Department of Commerce and Economic Development.                             
                                                                               
  Mr. Ridgeway clarified  that state  funding would come  into                 
  effect if a loan was defaulted.                                              
                                                                               
  In response to a question  by Representative Therriault, Mr.                 
  Ridgeway explained that  there is no actual  cash outlay for                 
  the interest subsidy.   The interest subsidy  is established                 
  by the state and  bank.  He explained that a  portion of the                 
  funds could be used for the buy down of interest rates.                      
                                                                               
  Representative Foster MOVED to  report CSHB 65 (HES)  out of                 
                                                                               
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  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.                                                    
                                                                               
  CSHB 65 (HES) was reported out of Committee with a "do pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Education, dated 3/22/95.