Sponsor Statement for HB 256

An Act relating to regulation of postsecondary educational institutions; and providing for an effective date.

HB 256 allows the Alaska Commission on Postsecondary Education to establish, in regulation, fees for the authorization of institutions to operate in the State of Alaska. Current statute imposes a fee structure which the Commission must charge for each application for authorization to operate ($100) or renewal for authorization to operate ($100). The current fee structure does not come close to recouping the cost of this function.

Research of 25 similar state approving agencies indicated that rates varied but Alaska had one of the lowest fee schedules of the states surveyed. Through this bill the Commission would have the authority to develop a different method of charging institutions to recover the cost of this program.

The authorization function is primarily to protect students by ensuring institutions operate within minimum standards. These standards are developed and maintained, complaints are investigated and technical assistance is provided to postsecondary schools. The Commission also administers the Alaska Student Loan Program. This bill supports the Legislature's goals and the Administration's directive for state agencies to move toward a "fee for service" basis to fund government operations.