Legislature(1995 - 1996)

02/13/1995 01:35 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL NO. 135                                                           
                                                                               
       "An Act relating to student loans; and providing for an                 
       effective date."                                                        
                                                                               
  Representative  Brown  provided  members  with  Amendment  1                 
  (Attachment 4).   Amendment 1  deletes "relating to  student                 
  loans"  from  the  title and  adds  "authorizing  the Alaska                 
  Commission on  Postsecondary Education to  adopt regulations                 
  necessary to determine  and set an interest  rate applicable                 
  to a student loan  for which money is disbursed on  or after                 
  July 1, 1995, and regulations necessary to implement certain                 
  loan default  sanctions and consolidation of loan provisions                 
  beginning July 1, 1995."                                                     
                                                                               
  JOE MCCORMICK, EXECUTIVE  DIRECTOR, POSTSECONDARY  EDUCATION                 
  COMMISSION  testified in  support of HB  135.   He explained                 
  that it provides  transition language  which will allow  the                 
  Commission to implement the provisions of HB 506, which were                 
  passed  by  the previous  legislature.   He  noted  that the                 
  transition language  which normally  accompanies a  statute,                 
  was inadvertently left out of HB 506.  The Department of Law                 
  notified the  Commission of  the problem  in November  1994.                 
  The  Department  of Law  advised  that  HB 135  needs  to be                 
  adopted before  the Commission  can  propose regulations  to                 
  implement HB 506 by July 1, 1995.  He emphasized that HB 506                 
  set forth a new method of calculating the interest in Alaska                 
  student loans, effective  July 1, 1995.   If regulations are                 
  not implemented before July 1, 1995 the Commission will have                 
                                                                               
                                8                                              
                                                                               
                                                                               
  13,000 loans that will not be dispersed.                                     
                                                                               
  Representative Martin  recalled that teachers  were excluded                 
  from the provisions of HB 506.                                               
                                                                               
  Mr.   Luck   agreed   that  section   2   would   allow  the                 
  implementation of provisions passed in  HB 506 which exclude                 
  teachers.  He observed it would not prevent  initial license                 
  holders to conduct their business.  Renewals would be denied                 
  if the holder's student  loan payments are not current.   If                 
  section 2  is not  adopted the  Commission would  be out  of                 
  compliance with the law.                                                     
                                                                               
  Co-Chair  Hanley MOVED  to adopt  Amendment 1, on  behalf of                 
  Representative Brown.   There being NO OBJECTION,  it was so                 
  ordered.                                                                     
                                                                               
  Representative  Navarre  MOVED  to report  CSHB  135  out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.                                                   

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