Legislature(2001 - 2002)
2001-02-05 House JournalFull Journal pdf
2001-02-05 House Journal Page 0236 HB 106 HOUSE BILL NO. 106 by the House Rules Committee by request of the Governor, entitled: "An Act relating to the authorizations for state financial institutions; relating to confidential financial records of depositors and customers of certain financial institutions; relating to the Alaska Banking Code, Mutual Savings Bank Act, Alaska Small Loans Act, and Alaska Credit Union Act; and providing for an effective date." 2001-02-05 House Journal Page 0237 was read the first time and referred to the Labor & Commerce Committee. The following fiscal note(s) apply: 1. Zero, Dept. of Community & Economic Development The Governor's transmittal letter dated February 2, 2001, appears below: "Dear Speaker Porter: This bill I transmit today allows state financial institutions to compete on equal terms with their federal counterparts by removing current restraints on the state's financial industry. These changes are encouraged under the federal Gramm-Leach-Bliley Act which permits the combining of banking institutions with insurance and securities businesses. Previous federal law prohibited this practice. This bill allows the Department of Community and Economic Development to grant state banks those powers enjoyed by national banks in a simplified, efficient process. The bill is patterned after federal law, but offers greater protection to depositor and consumer financial records. The state would use the more stringent practice of asking depositors and consumers to choose to allow specific disclosure of their records. Conversely, federal law and many other states allow disclosure unless the depositor or consumer specifically requests confidentiality. The bill also clarifies and updates existing statutes, partly in response to discussions with the financial industry. For example, the bill allows state banks to publish their financial reports in electronic form or in a local newspaper, and simplifies the procedure by which state banks obtain authority to install off-premises automated teller machines. The bill also removes the statutory limitation on the interest rate and fees state banks may charge on credit cards and grants credit unions the authority to issue credit cards. These provisions will keep Alaska banks competitive with out-of-state banks. 2001-02-05 House Journal Page 0238 As a means of modernizing Alaska's financial institutions, I urge your prompt and favorable action on this measure. Sincerely, /s/ Tony Knowles Governor"