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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled SB 195                                                                                                         
01 Relating to the membership and authority of the Alaska Commission on Postsecondary                                      
02 Education; relating to the Alaska Student Loan Corporation; relating to teacher education                               
03 loans; relating to interest on and consolidation of postsecondary education loans; relating to                          
04 Alaska supplemental education loans; relating to AlaskAdvantage grants; relating to the                                 
05 Alaska family education loan program; relating to postsecondary educational institutions; and                           
06 providing for an effective date.                                                                                        
07                           _______________                                                                               
08    * Section 1. AS 14.42.015(a) is amended to read:                                                                   
09            (a)  There is in the Department of Education and Early Development the                                       
10       Alaska Commission on Postsecondary Education consisting of                                                        
11                 (1)  two members of the Board of Regents of the University of Alaska                                    
12       designated by the members of that body;                                                                           
13                 (2)  one person representing private nonprofit higher education in the                              
01       state appointed by the governor [SELECTED BY THE BOARD OF TRUSTEES                                            
02       OF ALASKA PACIFIC UNIVERSITY FROM AMONG ITS MEMBERSHIP];                                                          
03                 (3)  one person representing the Department of Education and Early                                      
04       Development selected by the state Board of Education and Early Development;                                       
05                 (4)  four persons broadly and equitably representative of the general                                   
06       public appointed by the governor;                                                                                 
07                 (5)  one member of the Alaska Workforce Investment Board                                                
08       established by AS 23.15.550 designated by the members of that body;                                               
09                 (6)  one person from the members of the local community college                                         
10       advisory councils appointed by the governor;                                                                      
11                 (7)  two members from the legislature, one of whom shall be appointed                                   
12       by the president of the senate and one by the speaker of the house of representatives;                            
13                 (8)  one person appointed in accordance with (e) of this section who is                                 
14       a full-time student as defined in AS 14.43.160;                                                                   
15                 (9)  one administrator appointed by the governor from a proprietary                                     
16       institution of postsecondary education that has an authorization to operate in the state                          
17       issued under AS 14.48.                                                                                            
18    * Sec. 2. AS 14.42.015(d) is amended to read:                                                                      
19            (d)  A full-time postsecondary student shall be appointed to the Alaska                                      
20       Commission on Postsecondary Education from a list of nominees submitted to the                                    
21       governor. The governor shall make the appointment from the list within 60 days after                              
22       it is submitted. The list must consist of the names of two or more nominees from                              
23       private nonprofit institutions of higher education in the state [ALASKA PACIFIC                               
24       UNIVERSITY] and two nominees from each campus of the University of Alaska. The                                    
25       nominees shall be selected by the students at private nonprofit institutions of higher                        
26       education [ALASKA PACIFIC UNIVERSITY] and each campus of the University of                                    
27       Alaska by an election held on each campus. Elections under this subsection shall be                               
28       held concurrently with student regent elections required under AS 14.40.150(b) and                                
29       conducted under rules established by the Office of the Governor. If a private                                 
30       nonprofit institution of higher education in the state does not have an organized                             
31       student governance structure to hold elections, the institution's governing board                             
01       may nominate a full-time student and forward the name to the governor for                                     
02       consideration. The term of office of the student member of the commission is two                              
03       years and begins June 1 of the year in which the appointment is made. Membership on                               
04       the commission is immediately forfeited by a student member who ceases to be a full-                              
05       time student. Within 60 days after a vacancy occurs, the governor shall appoint a                                 
06       successor from those students appearing on the list of nominees to serve for the                                  
07       unexpired term of the original appointee. The term "campus" used in this subsection                               
08       means a portion of the University of Alaska designated as a "campus" by the Board of                              
09       Regents.                                                                                                          
10    * Sec. 3. AS 14.42.030(e) is amended to read:                                                                      
11            (e)  The commission may                                                                                      
12                 (1)  adopt regulations under AS 44.62 (Administrative Procedure Act)                                    
13       to                                                                                                                
14                      (A)  carry out the purposes of                                                                     
15                           (i)  AS 14.43.091 - 14.43.849, 14.43.990, AS 14.44, and                                       
16                 AS 14.48; and                                                                                           
17                           (ii)  AS 14.43.910 and 14.43.920 as they relate to the                                        
18                 purposes of AS 14.43.091 - 14.43.849, 14.43.990, AS 14.44, and                                          
19                 AS 14.48;                                                                                               
20                      (B)  ensure compliance with the requirements imposed by state                                      
21            and federal statutes and regulations governing the guaranty, insurance,                                      
22            purchase, or other dealings in eligible loans by federal agencies,                                           
23            instrumentalities, or corporations; and                                                                      
24                      (C)  establish standards for the                                                                   
25                           (i)  administration of hearings conducted under                                               
26                 AS 14.43.153; and                                                                                       
27                           (ii)  administrative enforcement of collection orders                                         
28                 under AS 14.43.151 - 14.43.155;                                                                         
29                 (2)  delegate to the executive director of the commission or a                                          
30       subcommittee of the commission any duty imposed on or power granted to the                                        
31       commission by this chapter, AS 14.43, AS 14.44, or AS 14.48, except its power to                                  
01       adopt regulations and its duty to consider appeals under AS 14.43.100(b) and                                      
02       AS 14.48.120;                                                                                                     
03                 (3)  establish task forces, committees, or subcommittees, not                                           
04       necessarily consisting of commission members, to advise and assist the commission in                              
05       carrying out its functions;                                                                                       
06                 (4)  contract with or use existing institutions of postsecondary                                        
07       education or other individuals or organizations to make studies, conduct surveys,                                 
08       submit recommendations, or otherwise contribute to the work of the commission;                                    
09                 (5)  establish fees for the review of an out-of-state institution that                                  
10                      (A)  requests approval for participation in the programs under                                     
11            AS 14.43.091 - 14.43.750, 14.43.990, and AS 14.44; and                                                       
12                      (B)  is not accredited by a national or regional accreditation                                     
13            association recognized by the Council for Higher Education Accreditation;                                    
14            [AND]                                                                                                        
15                 (6)  collect all fees and costs incurred in collection of the amount owed                               
16       on a loan or repayment obligation if the loan or repayment obligation becomes                                     
17       delinquent or in default; in this paragraph, fees and costs include attorney fees, court                          
18       costs, and collection fees charged by a collection agency; and                                                
19                 (7)  if approved by the department, receive and analyze                                             
20       performance data for students in grades kindergarten through 12 and enter into                                
21       contracts for the purpose of assessing education outcomes.                                                    
22    * Sec. 4. AS 14.42.035 is amended to read:                                                                         
23            Sec. 14.42.035. Collection of data. The commission may require the                                         
24       institutions of public and private higher education and other institutions of                                     
25       postsecondary education [,] in the state to submit data on costs, selection, and                              
26       retention of students, enrollments, education outcomes, plant capacities and use, and                         
27       other matters pertinent to effective planning and coordination, and shall furnish                                 
28       information concerning these matters to the governor, to the legislature, and to other                            
29       state and federal agencies as requested by them.                                                                  
30    * Sec. 5. AS 14.42.200 is amended to read:                                                                         
31            Sec. 14.42.200. General powers. In addition to other powers granted in this                                
01       chapter, the corporation may                                                                                      
02                 (1)  sue and be sued in its own name;                                                                   
03                 (2)  adopt an official seal;                                                                            
04                 (3)  adopt regulations under AS 44.62 (Administrative Procedure Act)                                    
05       to carry out the purposes of this chapter;                                                                        
06                 (4)  make and execute agreements, contracts, and other instruments                                      
07       necessary or convenient in the exercise of the powers and functions of the corporation,                           
08       including contracts with a person or governmental entity;                                                         
09                 (5)  receive, take, hold, and administer, on behalf of the corporation and                              
10       for any of its purposes, any appropriation, gift, grant, bequest, devise, or donation of                          
11       real property or personal property [IF THAT OBLIGATION OF THE                                                     
12       CORPORATION IS NOT A DEBT OF THE STATE]; in this paragraph, "property"                                            
13       includes                                                                                                          
14                      (A)  money; and                                                                                    
15                      (B)  life estates, leases, or other interests in property;                                         
16                 (6)  borrow money as provided in this chapter to carry out its corporate                                
17       purposes and issue its obligations as evidence of the borrowing, if that obligation of                        
18       the corporation is not a debt of the state;                                                                   
19                 (7)  include in a borrowing the amounts to pay financing charges,                                       
20       interest on the obligations for a period not exceeding one year after the date on which                           
21       the corporation estimates funds will otherwise be available to pay the interest,                                  
22       consultant, advisory, and legal fees, and other expenses necessary or incident to the                             
23       borrowing;                                                                                                        
24                 (8)  invest or reinvest, subject to its contracts with noteholders and                                  
25       bondholders, money held by the corporation as set out in AS 37.10.071;                                            
26                 (9)  set and collect interest, fees, and charges in connection with                                     
27       education loans or repayment obligations held by the corporation and its servicing                                
28       agents; in this paragraph, "charges" includes costs of financing by the corporation,                              
29       service charges, insurance premiums, and other costs incurred by the corporation in                               
30       carrying out its corporate purposes;                                                                              
31                 (10)  gather information on postsecondary education financial resources                                 
01       available to residents of this state and disseminate the information to reasonably assure                         
02       that qualified residents are aware of those financial resources;                                                  
03                 (11)  service education loans and repayment obligations held by the                                     
04       corporation;                                                                                                      
05                 (12)  finance, purchase, or participate in the financing or purchasing                      
06       [PURCHASE] of education loans;                                                                                    
07                 (13)  contract in advance for the financing, purchasing, [PURCHASE]                                 
08       or sale of education loans;                                                                                       
09                 (14)  sell or participate in the sale, either public or private and on terms                            
10       authorized by the board, of education loans to the Student Loan Marketing Association                             
11       or to other purchasers;                                                                                           
12                 (15)  collect and pay reasonable fees and charges in connection with the                                
13       financing, purchase, sale, and servicing of education loans and repayment obligations;                        
14                 (16)  enter into agreements with the federal government, including                                      
15       guaranty agreements and supplemental guaranty agreements as described in 20 U.S.C.                                
16       1001 - 1155, as amended, as necessary to provide for the receipt by the corporation of                            
17       administrative allowances and other benefits available under 20 U.S.C. 1001 - 1155,                               
18       as amended;                                                                                                       
19                 (17)  administer federal money allotted to the state involving insured                                  
20       education loans and related administrative costs and other matters;                                               
21                 (18)  enter into agreements with the commission relating to education                                   
22       loans and repayment obligations, the administration of the financial aid and loan                                 
23       programs under AS 14.43.091 - 14.43.750, 14.43.990, and AS 14.44, and the payment                                 
24       of and security for bonds of the corporation;                                                                     
25                 (19)  to the extent permitted under contracts with bondholders, consent                                 
26       to the modification of the rate of interest, time of payment of an installment of                                 
27       principal or interest, or other terms of an education loan or repayment obligation held                           
28       by the corporation;                                                                                               
29                 (20)  procure insurance against any loss in connection with the                                         
30       operation of its programs;                                                                                        
31                 (21)  provide advisory services to borrowers and other participants in                                  
01       the corporation's programs;                                                                                       
02                 (22)  enter into credit facility agreements and make pledges, covenants,                                
03       and agreements with respect to the repayment of borrowings under the credit facility                              
04       agreements;                                                                                                       
05                 (23)  develop and implement education financing programs; in this                                       
06       paragraph, "programs" includes                                                                                    
07                      (A)  programs listed in AS 14.42.030(b)(1);                                                        
08                      (B)  programs for the guaranteeing, servicing, originating, and                                    
09            financing of education loans for borrowers located both inside and outside the                               
10            state; and                                                                                                   
11                      (C)  federal financial aid programs made under federal law; and                                    
12                 (24)  perform acts that may be necessary or appropriate to carry out                                    
13       effectively the general objectives and purposes of the corporation under AS 14.42.100                             
14       - 14.42.990.                                                                                                      
15    * Sec. 6. AS 14.42.205(a) is amended to read:                                                                      
16            (a)  The purpose of this section is to provide for supplemental education loan                               
17       [PROGRAM] financing to assist qualified borrowers with unmet costs of attendance                              
18       at a postsecondary institution approved by the commission [IN MEETING                                         
19       POSTSECONDARY EDUCATION COSTS FOR WHICH FEDERAL AND                                                               
20       PRIVATE FINANCIAL AID MAY BE INSUFFICIENT].                                                                       
21    * Sec. 7. AS 14.42.205(b) is amended to read:                                                                      
22            (b)  The corporation may develop and establish a financing program for the                                   
23       Alaska supplemental education loan [PROGRAM] administered by the commission                                       
24       under AS 14.43.170 - 14.43.175.                                                                                   
25    * Sec. 8. AS 14.42.205(c) is amended to read:                                                                      
26            (c)  The financing program established under (b) of this section                                             
27                 (1)  shall                                                                                              
28                      (A)  provide that loans under the Alaska supplemental education                                    
29            loan program are                                                                                             
30                           [(i)]  medium-range and long-range fixed-rate and                                             
31                 variable-rate loans; [AND                                                                               
01                           (ii)  STRUCTURED TO OPERATE AS LINES OF                                                       
02                 CREDIT;]                                                                                                
03                      (B)  require terms and conditions for loans under the Alaska                                       
04            supplemental education loan program as the corporation determines are useful                                 
05            and feasible;                                                                                                
06                      (C)  be designed to                                                                                
07                           (i)  assist postsecondary institutions in this state in                                       
08                 attracting and retaining students;                                                                      
09                           (ii)  maximize the amount of financing available by                                           
10                 using private activity tax-exempt bond capacity as may be allocated by                                  
11                 the state; and                                                                                          
12                 (2)  except as limited by (1)(B) of this subsection, may provide for                                    
13       terms and conditions that are more attractive than prevailing terms and conditions                                
14       available to students from other supplemental education lenders.                                                  
15    * Sec. 9. AS 14.42.210(a) is amended to read:                                                                      
16            (a)  The education loan fund is established in the corporation. The education                                
17       loan fund is a trust fund to be used to carry out the purposes of AS 14.42.100 -                                  
18       14.42.990, AS 14.43.091 - 14.43.175, [14.43.400 - 14.43.420,] 14.43.600 - 14.43.700,                              
19       14.43.710 - 14.43.750, 14.43.990, and AS 14.44.025. The fund consists of money or                                 
20       assets appropriated or transferred to the corporation for the fund and money or assets                            
21       deposited in it by the corporation. The corporation may establish separate accounts in                            
22       the fund.                                                                                                         
23    * Sec. 10. AS 14.42.210(b) is amended to read:                                                                     
24            (b)  Money and other assets of the education loan fund may be used to                                        
25                 (1)  secure bonds of the corporation;                                                                   
26                 (2)  pay the costs of administration of the fund;                                                       
27                 (3)  invest in education loans and investments under AS 37.10.071;                                      
28                 (4)  finance programs approved under AS 14.43.091 - 14.43.175,                                          
29       [14.43.400 - 14.43.420,] 14.43.600 - 14.43.700, 14.43.710 - 14.43.750, or                                         
30       AS 14.44.040; and                                                                                                 
31                 (5)  pay the costs of administering and collecting the loans and                                        
01       repayment obligations under the financial aid programs listed in (4) of this subsection.                          
02    * Sec. 11. AS 14.42.210 is amended by adding a new subsection to read:                                             
03            (d)  The corporation may provide for terms and conditions for use of the                                     
04       education loan fund that are more favorable than prevailing terms and conditions                                  
05       available to students from other education lenders.                                                               
06    * Sec. 12. AS 14.42 is amended by adding a new section to read:                                                    
07            Sec. 14.42.215. Interest. (a) The corporation shall set the interest rate on a                             
08       loan financed by the corporation under AS 14.43.091 - 14.43.160, 14.43.170 -                                      
09       14.43.175, 14.43.710 - 14.43.750, and AS 14.44.040. Interest on a loan accrues from                               
10       the time the loan is disbursed.                                                                                   
11            (b)  A borrower may elect to make payments of interest that accrues during the                               
12       borrower's term of attendance at the postsecondary institution or during authorized                               
13       deferment periods; however, any unpaid interest shall be capitalized as part of the                               
14       principal to be repaid as agreed, or upon graduation, withdrawal, or completion of the                            
15       deferment period.                                                                                                 
16    * Sec. 13. AS 14.42.240(c) is amended to read:                                                                     
17            (c)  In computing the amount of a capital reserve fund for the purpose of this                               
18       section, securities in which all or a portion of the fund is invested and credit facilities                       
19       deposited in or credited to a capital reserve fund under (f) of this section shall be                             
20       valued by a reasonable method established by the board by resolution or by trust                              
21       indenture. Valuation shall include the amount of interest earned or accrued as of the                         
22       date of valuation.                                                                                                
23    * Sec. 14. AS 14.42.240(g) is amended to read:                                                                     
24            (g)  In this section, "capital reserve fund requirement" means the amount                                    
25       required to be on deposit in the capital reserve fund as of the date of computation as                            
26       determined by resolution of the board or by trust indenture.                                                  
27    * Sec. 15. AS 14.42.250 is amended to read:                                                                        
28            Sec. 14.42.250. Validity of pledge. It is the intention of the legislature that a                          
29       pledge made in respect to bonds of the corporation shall be valid, perfected, and                             
30       binding from the time the pledge is made; that the money or property so pledged and                               
31       thereafter received by the corporation shall immediately be subject to the lien of the                            
01       pledge without physical delivery or further act; and that the lien of the pledge shall be                         
02       valid and binding as against all parties having claims of any kind in tort, contract, or                          
03       otherwise against the corporation irrespective of whether the parties have notice.                                
04       Neither the resolution, trust agreement, nor other instrument by which a pledge is                                
05       created need be recorded or filed under the provisions of AS 45.01 - AS 45.08,                                    
06       AS 45.12, AS 45.14, and AS 45.29 (Uniform Commercial Code) to be valid,                                           
07       perfected, binding, or effective.                                                                             
08    * Sec. 16. AS 14.43.120(b) is amended to read:                                                                     
09            (b)  Education loans may only be used to attend a                                                            
10                 (1)  career education program operating on a sound fiscal basis that has                                
11                      (A)  operated for two years before the borrower attends; and                                       
12                      (B)  submitted an executed program participation agreement as                                      
13            required by the commission; or                                                                               
14                 (2)  [A] college or university that                                                                     
15                      (A)  has operated for at least two years before the borrower                                       
16            attends;                                                                                                     
17                      (B)  is accredited by a national or regional accreditation                                         
18            association recognized by the Council for Higher Education [ON                                           
19            RECOGNITION OF POSTSECONDARY] Accreditation or is approved by                                                
20            the commission;                                                                                              
21                      (C)  if the loans are federally insured, is approved by the United                                 
22            States Secretary of Education;                                                                               
23                      (D)  is a degree granting institution; and                                                         
24                      (E)  has submitted an executed program participation agreement                                     
25            as required by the commission.                                                                               
26    * Sec. 17. AS 14.43.122 is repealed and reenacted to read:                                                         
27            Sec. 14.43.122. Consolidation of loans. (a) The corporation may offer a                                    
28       borrower who has received more than one education loan the option of consolidating                                
29       the multiple loans into a single loan as provided in this section.                                                
30            (b)  For a borrower to be eligible for consolidation of a loan under this section,                           
31       the borrower must apply on a form approved by the corporation and provide proof                                   
01       satisfactory to the corporation that the borrower                                                                 
02                 (1)  physically resides in the state and has maintained a domicile in the                               
03       state for not less than 12 consecutive months before submitting an application for                                
04       consolidation;                                                                                                    
05                 (2)  has not been physically absent from the state for more than 60 days                                
06       in the 12 months before submitting an application for consolidation;                                              
07                 (3)  has not declared residency in another state;                                                       
08                 (4)  has not received a benefit of residency in another state.                                          
09            (c)  In this section, "education loan" means a loan to finance the cost of                                   
10       attendance at a postsecondary institution in or outside the state.                                                
11    * Sec. 18. AS 14.43.160(4) is amended to read:                                                                     
12                 (4)  "half-time student" means an undergraduate, graduate, or career                                    
13       education student who, during the semester, is enrolled and is in regular attendance at                   
14       classes at one or more public or private institutions of higher education for [AT                                 
15       LEAST A TOTAL OF] six to 11 semester credit hours or an equivalent of six to 11                           
16       semester credit hours, and includes a career education student enrolled and in regular                            
17       attendance in classes for [AT LEAST] 15 hours a week or a graduate student who is                             
18       enrolled and is in regular attendance at classes for the equivalent of six to eight                           
19       semester hours of credit or the equivalent;                                                                   
20    * Sec. 19. AS 14.43.160(5) is amended to read:                                                                     
21                 (5)  "school year" means an academic period that is a minimum of 30                                     
22       weeks of instructional time that begins between July [SEPTEMBER] 1 of one year                                
23       and June 30 [AUGUST 31] of the following year;                                                                
24    * Sec. 20. AS 14.43.170 is amended to read:                                                                        
25            Sec. 14.43.170. Creation; purpose. There is created the Alaska supplemental                                
26       education loan program to provide postsecondary educational supplemental financial                                
27       assistance. Supplemental financial assistance is available to qualified borrowers to                          
28       assist with unmet costs of attendance at a postsecondary institution approved by                              
29       the commission [ONLY IF THE FINANCIAL AID AVAILABLE THROUGH THE                                               
30       ALASKADVANTAGE LOAN PROGRAM IS INSUFFICIENT TO COVER THE                                                          
31       COSTS OF ATTENDANCE AT A POSTSECONDARY INSTITUTION OR IF THE                                                      
01       BORROWER DOES NOT QUALIFY FOR FINANCIAL AID UNDER THE                                                             
02       FEDERAL GUARANTEED STUDENT LOAN PROGRAM]. The commission shall                                                    
03       make the public aware of the Alaska supplemental education loan program to facilitate                             
04       providing loans to as many eligible borrowers as possible.                                                        
05    * Sec. 21. AS 14.43.171 is amended to read:                                                                        
06            Sec. 14.43.171. Applicability of other laws. The provisions of                                             
07       AS 14.43.120(b), 14.43.120(d)(4) [AS 14.43.120(d)(4), 14.43.122], 14.43.135,                                  
08       14.43.140, and 14.43.145 - 14.43.160 [, 14.43.164, 14.43.166, AND 14.43.168] apply                            
09       to the loans made under AS 14.43.170 - 14.43.175 as if the loans were made under                                  
10       those applicable provisions.                                                                                      
11    * Sec. 22. AS 14.43.172(a) is amended to read:                                                                     
12            (a)  For a borrower to be eligible for a loan under AS 14.43.170 - 14.43.175,                                
13       the borrower must be, or be about to be, enrolled in a postsecondary institution on at                            
14       least a half-time basis and must be                                                                               
15                 (1)  a resident of this state                                                                           
16                      (A)  attending or about to attend a postsecondary institution that                                 
17            has been approved by and has executed a program participation agreement                                      
18            with the commission; or                                                                                      
19                      (B)  attending or about to attend an approved federal                                              
20            guaranteed student [FAMILY EDUCATION] loan institution; or                                               
21                 (2)  physically present in this state and attending or about to attend a                            
22       federal guaranteed student [AN APPROVED FEDERAL FAMILY EDUCATION]                                             
23       loan institution located in this state.                                                                           
24    * Sec. 23. AS 14.43.172(g) is amended to read:                                                                     
25            (g)  A borrower who is attending a postsecondary institution in this state that                              
26       has been approved by the commission but is not an approved federal guaranteed                                 
27       student [FEDERAL FAMILY EDUCATION] loan institution must also comply with                                     
28       and meet any other requirements established by the commission.                                                    
29    * Sec. 24. AS 14.43.173(a) is amended to read:                                                                     
30            (a)  In a school year, the corporation may finance [COMMISSION MAY                                       
31       MAKE] a loan to an eligible borrower under AS 14.43.170 - 14.43.175 attending an                                  
01       eligible postsecondary institution not to exceed                                                                  
02                 (1)  $14,000 [$8,500] to an eligible undergraduate student attending a                              
03       college or university;                                                                                            
04                 (2)  $15,000 [$9,500] to an eligible graduate student attending a college                           
05       or university;                                                                                                    
06                 (3)  $10,000 [$6,500] to an eligible student attending a career education                           
07       program.                                                                                                          
08    * Sec. 25. AS 14.43.173(b) is amended to read:                                                                     
09            (b)  The corporation may finance [COMMISSION MAY NOT AWARD]                                              
10       loans made under AS 14.43.170 - 14.43.175 to a borrower in an amount that is not                              
11       [FOR] more than                                                                                                   
12                 (1)  a total of $56,000 [$42,500] for undergraduate study;                                          
13                 (2)  a total of $60,000 [$47,500] for graduate study; or                                            
14                 (3)  a combined total of $87,000 [$60,000] for undergraduate and                                    
15       graduate study.                                                                                                   
16    * Sec. 26. AS 14.43.173 is amended by adding a new subsection to read:                                             
17            (d)  The commission shall determine a borrower's loan award amount for a                                     
18       specific school year based on a student's on-time, half-time, and full-time student                               
19       status and may not exceed the limits established in this section or the borrower's costs                          
20       of attendance.                                                                                                    
21    * Sec. 27. AS 14.43.175 is amended to read:                                                                        
22            Sec. 14.43.175. Repayment of loans. A borrower's obligation to commence                                    
23       repayment of the principal of and interest on a loan under AS 14.43.170 - 14.43.175                           
24       begins not more than six months following the borrower's completion or other                                  
25       termination of the postsecondary program or the date that the borrower ceases to be                               
26       enrolled on at least a half-time basis. [THE COMMISSION SHALL SET THE                                             
27       REPAYMENT TERMS OF A LOAN UNDER AS 14.43.170 - 14.43.175.]                                                        
28    * Sec. 28. AS 14.43.400 is amended to read:                                                                        
29            Sec. 14.43.400. Purpose; creation. There is created the Alaska                                         
30       [ALASKADVANTAGE] education grant program to provide financial assistance to                                       
31       eligible students to enable them to attend, or continue their attendance at,                                      
01       postsecondary educational institutions. Funds designated by the corporation or                                    
02       appropriated for this program may be used as matching funds for the state's                                       
03       participation in the federal grant program under 20 U.S.C. 1070c - 1070c-4.                                       
04    * Sec. 29. AS 14.43.405(a) is amended to read:                                                                     
05            (a)  The Alaska [ALASKADVANTAGE] education grant program created                                         
06       under AS 14.43.400 - 14.43.420 shall be administered by the executive director of the                             
07       commission.                                                                                                       
08    * Sec. 30. AS 14.43.410(a) is amended to read:                                                                     
09            (a)  The funds for the Alaska [ALASKADVANTAGE] education grant                                           
10       program may be allocated to eligible students in accordance with [THE PROVISIONS                                  
11       OF THE FEDERAL GRANT PROGRAM UNDER 20 U.S.C. 1070c - 1070c-4 AND]                                                 
12       regulations adopted under AS 14.42.030(e), AS 14.43.105, [AND] 14.43.405, and                         
13       14.43.415.                                                                                                    
14    * Sec. 31. AS 14.43.415(c) is amended to read:                                                                     
15            (c)  The commission shall adopt regulations to establish terms and conditions                            
16       [A PRIORITIZATION PROCESS] for awarding grants under AS 14.43.400 -                                               
17       14.43.420 and to establish the amounts to be awarded for on-time, full-time, and                              
18       half-time student status.                                                                                     
19    * Sec. 32. AS 14.43.420(a) is amended to read:                                                                     
20            (a)  A grant made under AS 14.43.400 - 14.43.420 may not be in an amount                                     
21       that exceeds $4,000 [LESS THAN $500 NOR MORE THAN $3,000] for each school                                     
22       year.                                                                                                             
23    * Sec. 33. AS 14.43.420(c) is amended to read:                                                                     
24            (c)  A student may receive not more than a total of $16,000 [$12,000] in grants                          
25       awarded under AS 14.43.400 - 14.43.420.                                                                           
26    * Sec. 34. AS 14.43.420 is amended by adding a new subsection to read:                                             
27            (d)  The commission may apply the amounts awarded under AS 14.43.400 -                                       
28       14.43.420 to a state match required by federal grant programs under 20 U.S.C.                                     
29       1070c-2.                                                                                                          
30    * Sec. 35. AS 14.43.620(a) is repealed and reenacted to read:                                                      
31            (a)  The teacher education revolving loan fund is created for the purpose of                                 
01       making education loans to students selected under AS 14.43.600 - 14.43.700. The fund                              
02       consists of money or assets appropriated or transferred to the commission for deposit                             
03       into the fund, money or assets deposited into the fund by the commission, and                                     
04       earnings on investments of money held in the fund.                                                                
05    * Sec. 36. AS 14.43.620 is amended by adding a new subsection to read:                                             
06            (c)  The commission may make a new loan under this section only if sufficient                                
07       money or assets are available in the fund established under (a) of this section. If no                            
08       new loans are issued in a fiscal year under this subsection, the commission shall use                             
09       deposits for the year in the succeeding year.                                                                     
10    * Sec. 37. AS 14.43.640 is amended by adding a new subsection to read:                                             
11            (g)  The commission shall set the interest rate on a teacher education loan                                  
12       made from the teacher education revolving loan fund established under AS 14.43.620.                               
13    * Sec. 38. AS 14.43.740(a) is amended to read:                                                                     
14            (a)  The provisions of AS 14.43.100, 14.43.120(a) - (c), (m), and (r) - (u),                                 
15       14.43.122, 14.43.135, 14.43.145 - 14.43.155, 14.43.173, and 14.43.910 - 14.43.990                             
16       apply to a loan made under AS 14.43.710 - 14.43.750.                                                              
17    * Sec. 39. AS 14.43.750(a) is amended to read:                                                                     
18            (a)  A person may apply for and obtain a family education loan on behalf of a                                
19       family member if                                                                                                  
20                 (1)  the borrower and the family member                                                             
21                      (A)  are residents [IS A RESIDENT] of the state at the time of                                 
22            application for the loan; for purposes of this paragraph, a borrower and family                          
23            member qualify [QUALIFIES] as residents [A RESIDENT] of the state if the                             
24            borrower and the family member have [HAS] been physically present in the                                 
25            state for at least one year immediately before the time of application for the                               
26            loan with the intent to remain indefinitely or, if not physically present in the                             
27            state, the borrower and family member have [HAS] not declared or                                         
28            established residency in another state, intend [INTENDS] to return                                       
29            permanently to the state, and the absence meets the requirements imposed                                     
30            under AS 14.43.125(a)(3)(C)(i) - (vi);                                                                       
31                      (B)  satisfy [SATISFIES] the requirements of                                                   
01            AS 14.43.125(a)(6) - (9);                                                                                    
02                 (2)  the family member                                                                                  
03                      (A)  is enrolled as a full-time student in a career education,                                     
04            associate, baccalaureate, or graduate degree program; or                                                     
05                      (B)  is a graduate of a high school or the equivalent, or                                          
06            scheduled for graduation from a high school within six months, who, at the                                   
07            time of loan disbursement, will be enrolled in compliance with (A) of this                                   
08            paragraph; and                                                                                               
09                 (3)  neither the borrower nor the family member                                                         
10                      (A)  is delinquent or has ever been in default on a loan                                           
11            previously awarded by the commission unless the defaulted loan has been                                  
12            voluntarily paid in full;                                                                                
13                      (B)  is past due on a child support obligation established by                                      
14            court order or by the child support services agency under AS 25.27.160 -                                     
15            25.27.220 at the time of application or loan disbursement;                                                   
16                      (C)  has, within the previous five years, had a loan discharged                                    
17            or written off by the commission for any reason.                                                             
18    * Sec. 40. AS 14.43.915(a) is amended to read:                                                                     
19            (a)  The Alaska [ALASKADVANTAGE] education grant account is created                                      
20       as an account in the general fund. Money may be appropriated to the account from the                              
21       Alaska higher education investment fund under AS 37.14.750 and from other sources.                                
22       The commission may use the money in the account to pay grants awarded under                                       
23       AS 14.43.400 - 14.43.420 and to pay the cost of administration of the Alaska                                  
24       education grant program created under AS 14.43.400.                                                           
25    * Sec. 41. AS 14.43.990 is amended by adding a new paragraph to read:                                              
26                 (7)  "on-time student" means an undergraduate who is enrolled and is in                                 
27       regular attendance at classes for 15 or more semester hours of credit or the equivalent                           
28       during the semester; any combination of semester hours of credit or the equivalent                                
29       aggregating to the requisite number of semester hours and undertaken during a                                     
30       semester at two or more public or private institutions of higher education constitutes                            
31       on-time student status.                                                                                           
01    * Sec. 42. AS 14.48.030(b) is amended to read:                                                                     
02            (b)  Except as provided under AS 14.48.165, the commission may exempt the                                    
03       following educational programs, and educational institutions only providing programs                              
04       exempt under (a) of this section and this subsection, from some or all of the provisions                          
05       of this chapter:                                                                                                  
06                 (1)  a program operated by a state or a political subdivision of a state;                               
07                 (2)  instruction sponsored by a bona fide trade, business, labor,                                       
08       professional, or fraternal association or organization, recognized by the commission,                             
09       and conducted only for that association's or organization's membership;                                           
10                 (3)  nonprofit postsecondary educational institutions offering                                          
11       undergraduate or graduate educational programs, from a facility in this state, that are                           
12       acceptable for credit toward an associate, bachelor's, or graduate degree;                                        
13                 (4)  a program that is provided without a fee, other than the actual cost                               
14       of materials, to students;                                                                                        
15                 (5)  a program that does not offer education credentials;                                               
16                 (6)  a short course of study that is not more than 15 [10] days or 120                          
17       [80] hours in duration;                                                                                           
18                 (7)  a program offered within the state by an out-of-state institution that                             
19       is authorized to operate by the state in which it is located and is nationally or                                 
20       regionally accredited;                                                                                            
21                 (8)  a program or institution that is regulated by another agency or                                    
22       political subdivision of the state regarding the quality of course contents, facilities, and                      
23       operation.                                                                                                        
24    * Sec. 43. AS 14.48.050 is amended to read:                                                                        
25            Sec. 14.48.050. Powers and duties of commission. The commission shall                                      
26                 (1)  establish minimum criteria consistent with AS 14.48.060 including                                  
27       quality of education, ethical and business practices, health and safety, and fiscal                               
28       responsibility that applicants for authorization to operate, or for an agent's permit,                            
29       must meet before the authorization or permit is issued;                                                           
30                 (2)  receive, investigate, and act upon applications for authorization to                               
31       operate postsecondary educational institutions and applications for agent's permits;                              
01                 (3)  maintain a list of postsecondary educational institutions and agents                               
02       authorized to operate in the state under this chapter;                                                            
03                 (4)  keep current and make available as public information the list of                                  
04       institutions and agents;                                                                                          
05                 (5)  enter into interstate reciprocity agreements [WITH SIMILAR                                         
06       AGENCIES IN OTHER STATES,] if, in the judgment of the commission, the                                     
07       agreements will be helpful in carrying out the purposes of this chapter;                                          
08                 (6)  receive and maintain as a permanent file, copies of academic                                       
09       records maintained in accordance with AS 14.48.060(b)(6);                                                         
10                 (7)  adopt regulations and procedures necessary or appropriate for the                                  
11       conduct of its work and the implementation of this chapter under AS 44.62                                         
12       (Administrative Procedure Act);                                                                                   
13                 (8)  investigate on its own initiative or in response to a complaint                                    
14       lodged with it, persons subject to, or reasonably believed by the commission to be                                
15       subject to, the jurisdiction of this chapter; and in connection with the investigation                            
16       subpoena persons, books, records, or documents related to the investigation; require                              
17       answers in writing under oath to questions propounded by the commission and                                       
18       administer oaths or affirmations to persons in connection with the investigation; and,                            
19       for the purpose of examination at all reasonable times, shall have access to, and the                             
20       right to copy, documentary evidence of a corporation that is under investigation or                               
21       being proceeded against;                                                                                          
22                 (9)  exercise other necessary powers and duties in conformity with the                                  
23       provisions of this chapter that, in the judgment of the commission, are necessary to                              
24       carry out the provisions of this chapter.                                                                         
25    * Sec. 44. AS 14.48.165(b) is amended to read:                                                                     
26            (b)  A student attending a postsecondary educational institution and who is                              
27       physically present on the campus of the postsecondary educational institution                                 
28       shall sign a document provided by the institution indicating that the student has                                 
29       received                                                                                                          
30                 (1)  an immunization against meningococcal disease; or                                                  
31                 (2)  the notice described under (a) of this section.                                                    
01    * Sec. 45. AS 14.43.120(f), 14.43.120(v), 14.43.174, 14.43.410, 14.43.415(b), 14.43.620(b),                        
02 and 14.43.740(g) are repealed.                                                                                          
03    * Sec. 46. The uncodified law of the State of Alaska is amended by adding a new section to                         
04 read:                                                                                                                   
05       TEACHER EDUCATION LOAN INTEREST RATE; TRANSITION;                                                                 
06 APPLICABILITY. (a) AS 14.43.640(g), added by sec. 37 of this Act, applies to loans made                                 
07 under AS 14.43.640 on or after the effective date of this Act.                                                          
08       (b) The Alaska Student Loan Corporation shall set the interest rate on a loan made                                
09 under AS 14.43.640 before the effective date of this Act and on loans made to a borrower who                            
10 was issued a loan before the effective date of this Act under AS 14.43.640 that are financed                            
11 by the corporation and are not funded from the teacher education revolving loan fund under                              
12 AS 14.43.620.                                                                                                           
13    * Sec. 47. The uncodified law of the State of Alaska is amended by adding a new section to                         
14 read:                                                                                                                   
15       ALASKADVANTAGE GRANT PROGRAM; REGULATIONS. To the extent                                                          
16 current regulations are consistent with this Act, the regulations previously adopted by the                             
17 Alaska Commission on Postsecondary Education implementing the AlaskAdvantage                                            
18 education grant program created under AS 14.43.400, as that section read before the                                     
19 amendment in sec. 28 of this Act, shall be construed to apply to the Alaska education grant                             
20 program under AS 14.43.400 - 14.43.420, as amended by secs. 28 - 34 of this Act, until the                              
21 regulations are amended to change the name as provided in this Act.                                                     
22    * Sec. 48. This Act takes effect immediately under AS 01.10.070(c).                                                
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