SB 277-STUDENT LOAN PROGRAMS    MS. DIANE BARRANS, Executive Director, Alaska Commission on Postsecondary Education (ACPE, "Commission") spoke to the concerns that had been brought up by committee members at the previous meeting [meeting of 2/4/04]. She addressed the first concern by referencing Section 4, page 3, regarding Alaska Student Loan Corporation's (ASLC) authority to finance projects of the state with the proceeds of bond issues. This supports the Corporation's intent to, over a three-year period, return a substantial amount of the original capital that the state contributed to start up the Corporation. To remedy concern that language was overly broad and could lead to putting the Corporation in a financially untenable position in the future, Ms. Barrans recommended adding Subsection (g), [AS 14.42.220] to cap the aggregate amount; the total the Corporation could issue, with respect to (a)(3) would be $280 million. MS. BARRANS said the second concern expressed by committee members pertained to the Commission's limited authority to prioritize four occupation categories and how, in the event of an unforeseen emergency, the Commission would not have the authority to prioritize grant money to individuals pursuing careers outside of those categories. The remedy to this concern was to remove the limiting section, the language in Section 21, lines 28 - 29 [health, human services, education, or public safety]. She noted that conforming changes would need to be made to Section 24, reflecting that the language defined in paragraph (3) had been removed. Paragraph (4) would read, "occupation or profession" because the term, "occupational or professional field" would be removed. She said these constitute the committee substitute (CS) [which was currently en route to the HESS committee]. MR. JASON HOOLEY, staff to Senator Dyson, informed CHAIR DYSON and members that CS would arrive during today's hearing. CHAIR DYSON said he would suspend the hearing on SB 277 until the arrival of the CS, later in the meeting. SB 277-STUDENT LOAN PROGRAMS  CHAIR DYSON announced that the proposed CS had arrived and the committee would return to SB 277. SENATOR WILKEN moved to report the CS for SB 277 (version D) [labeled 23-GS2003\D, Cook, 2/9/04] out of committee with individual recommendations and the attached fiscal notes. SENATOR GREEN brought up a point of order regarding adopting the CS before moving the bill out. SENATOR WILKEN moved and asked unanimous consent that the prior motion be withdrawn. CHAIR DYSON acknowledged that there was no objection and it was so ordered. SENATOR WILKEN moved and asked unanimous consent that version D be adopted as the working document for SB 277. CHAIR DYSON asked if there was any objection. Hearing none, version D was before the committee. MS. BARRANS informed the committee that she had previously failed to mention a change and wanted members to be apprised of that change before proceeding with the vote. She referred to page 11, line 24, and said that the prior version of the bill had established a severe shortage at a vacancy rate of 10 percent or greater. She said since the scope of the potential prioritization group was being expanded, raising that rate an additional 5 percent would be prudent; she had recommended that change as well. CHAIR DYSON noted that he had been alerted to that change. SENATOR WILKEN moved to report CSSB 277, version D, from committee with individual recommendations and attached fiscal notes. CHAIR DYSON asked if there was any objection. Seeing and hearing none, it was so ordered. CHAIR DYSON added that the purview of the HESS committee was to evaluate what SB 277 does for education, while the financial implications - which are significant - would be dealt with in the next committee of referral.