HB  27-GRADUATE STUDENT LOANS                                                                                                   
                                                                                                                                
CO-CHAIRMAN DYSON introduced the first order of business as HB                                                                  
27, "An Act relating to graduate student loans; and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
REPRESENTATIVE ELDON MULDER, Alaska State Legislature, sponsor of                                                               
HB 27, presented a proposed committee substitute for HB 27 which                                                                
took care of the technical and housekeeping items.  Sections 1, 2                                                               
and 3 of the proposed committee substitute pertain to the                                                                       
technical corrections relating to the Washington, Alaska,                                                                       
Montana, Idaho Medical Education Program (WAMI) discussed                                                                       
earlier.  The changes to the original bill are on page 4,                                                                       
sections 4, 5 and 6.                                                                                                            
                                                                                                                                
DIANE BARRANS, Executive Director, Postsecondary Education                                                                      
Commission, Department of Education, explained the changes on the                                                               
work draft, which removes the WAMI Program from the Western                                                                     
Interstate Commission on Higher Education (WICHE) Compact                                                                       
statute, where it didn't belong.  Section 2 allows for the                                                                      
relocation of that language to the Scholarship, Loans and Grant                                                                 
section of AS 14.43.  Section 3 provides the regulatory authority                                                               
needed by the commission.                                                                                                       
                                                                                                                                
REPRESENTATIVE MULDER pointed out page 4 of the work draft, where                                                               
the drafters reworded it to alleviate prior concern over                                                                        
terminology.  Section 5, Applicability, specifies that it applies                                                               
to WICHE on or after July 1, 1999.  Section 6, Transition                                                                       
Regulations states that "the Alaska Commission on Postsecondary                                                                 
Education may immediately proceed to adopt regulations necessary                                                                
to implement this Act" once this passes.                                                                                        
                                                                                                                                
Number 391                                                                                                                      
                                                                                                                                
TERESA WILLIAMS, Assistant Attorney General, Fair Business                                                                      
Practices, Civil Division (Anchorage), Department of Law,                                                                       
commented that she hadn't actually seen the committee substitute                                                                
but assumed the draft is comparable to what she sent to Mike                                                                    
Ford.                                                                                                                           
                                                                                                                                
REPRESENTATIVE MULDER acknowledged that information she sent was                                                                
put into bill form.                                                                                                             
                                                                                                                                
REPRESENTATIVE WHITAKER made a motion to adopt the proposed                                                                     
committee substitute (CS) for HB 27, version 1-LSO207\D, Ford,                                                                  
2/4/99, as a work draft.  There being no objection, it was                                                                      
adopted.                                                                                                                        
                                                                                                                                
REPRESENTATIVE KEMPLEN made a motion to move CSHB 27, version                                                                   
1-LS0207\D, Ford, 2/4/99, from committee with individual                                                                        
recommendations.  There being no objection, CSHB 27(HES) moved                                                                  
from the House Health, Education and Social Services Standing                                                                   
Committee.