Legislature(2013 - 2014)HOUSE FINANCE 519

04/10/2014 08:30 AM FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 56 RECLASSIFYING CERTAIN DRUG OFFENSES TELECONFERENCED
Heard & Held
+ SB 64 OMNIBUS CRIME/CORRECTIONS/RECIDIVISM BILL TELECONFERENCED
Scheduled But Not Heard
+ SB 173 SYNTHETIC DRUGS TELECONFERENCED
<Pending Referral>
+ HB 160 LICENSING OF ATHLETIC TRAINERS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 121 COMMERCIAL FISHING & AGRICULTURE BANK
Moved CSHB 121(FIN) Out of Committee
HOUSE BILL NO. 121                                                                                                            
                                                                                                                                
     "An  Act relating  to the  examinations, board,  loans,                                                                    
     records,   and  lobbying   contracts   of  the   Alaska                                                                    
     Commercial Fishing and  Agriculture Bank; and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
8:38:09 AM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  discussed the CS before  the committee. He                                                                    
reported one minor change  replacing language regarding loan                                                                    
qualifications.  The  language  was  much  softer  than  the                                                                    
earlier version and mirrored language  from the Alaska State                                                                    
Constitution regarding sustainability.                                                                                          
                                                                                                                                
Vice-Chair  Neuman MOVED  to  ADOPT  the proposed  committee                                                                    
substitute for HB 121(FIN),  Work Draft (28-LS0491\O). There                                                                    
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment 1.                                                                                 
                                                                                                                                
     Page 5, following line 10:                                                                                                 
     Insert a new bill section to read:                                                                                         
     "* Sec. 2. AS 44.81.215 is amended by adding a new                                                                         
     subsection to read:                                                                                                        
     (b) Before making a loan  under this section, the board                                                                    
     must  find  that  the  loan  will  not  result  in  the                                                                    
     displacement  of an  existing or  planned Alaskan-owned                                                                    
     business."                                                                                                                 
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 7, line 26:                                                                                                           
     Delete "sec. 7"                                                                                                            
     Insert "sec. 8"                                                                                                            
                                                                                                                                
     Page 7, line 28:                                                                                                           
     Delete "sec. 7"                                                                                                            
     Insert "sec. 8"                                                                                                            
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative   Gara  explained   that   HB  121   expanded                                                                    
Commercial  Fishing and  Agricultural Bank's  (CFAB) ability                                                                    
to  loan to  businesses  owned by  persons and  corporations                                                                    
outside of  Alaska. Much of  CFAB's activity was  related to                                                                    
Alaskan-owned  businesses.  He  stressed the  importance  of                                                                    
Amendment 1 which would require  the CFAB board to determine                                                                    
whether or not a loan  would displace an existing or planned                                                                    
Alaskan-owned businesses prior to making a loan.                                                                                
                                                                                                                                
8:42:08 AM                                                                                                                    
                                                                                                                                
LELA  KLINGERT,  COMMERCIAL  FISHING  AND  AGRICULTURE  BANK                                                                    
(CFAB),   ANCHORAGE   (via    teleconference),   asked   for                                                                    
clarification about the amendment.                                                                                              
                                                                                                                                
Representative Gara  read his  amendment and  indicated that                                                                    
it addressed the new sections on non-Alaskan businesses.                                                                        
                                                                                                                                
Ms.  Klingert  replied  that the  board  was  not  typically                                                                    
involved  in  the  credit process.  She  expressed  logistic                                                                    
concerns reporting that the board  only met about five times                                                                    
a year. She also stated  her uncertainty about how the board                                                                    
would make appropriate determinations.                                                                                          
                                                                                                                                
8:43:57 AM                                                                                                                    
                                                                                                                                
Representative Holmes commented that  although she liked the                                                                    
intent of  the amendment she  did not  think it set  forth a                                                                    
feasible   standard  from   which  a   bank  could   make  a                                                                    
determination. She opposed the amendment.                                                                                       
                                                                                                                                
Vice-Chair Neuman  stated that many  lodges up and  down the                                                                    
Susitna River were owned  by out-of-state and out-of-country                                                                    
owners.  He  liked  the  amendment  and  believed  CFAB  was                                                                    
supported under Alaska Statute as the original intent.                                                                          
                                                                                                                                
Representative Thompson  liked the intent of  the amendment,                                                                    
but did not understand how  to define "planned" and apply it                                                                    
in the loan approval process.                                                                                                   
                                                                                                                                
8:45:40 AM                                                                                                                    
                                                                                                                                
Representative Gara  MOVED to AMEND  Amendment 1.  He wanted                                                                    
to remove  the words "or  planned" from line 5.  There being                                                                    
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
A roll call vote was taken  on the motion to adopt Amendment                                                                    
1 as amended.                                                                                                                   
                                                                                                                                
IN  FAVOR:  Wilson,   Costello,  Edgmon,  Gara,  Guttenberg,                                                                    
Neuman, Thompson, Austerman, Stoltze                                                                                            
OPPOSED: Holmes, Munoz                                                                                                          
                                                                                                                                
The  MOTION  PASSED  (9/2).  Amendment   1  as  AMENDED  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
8:47:44 AM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment 2.                                                                                 
                                                                                                                                
     Page 1, following line 4:                                                                                                  
     Insert a new bill section to read:                                                                                         
     "* Section 1. AS 44.81.020(a) is amended to read:                                                                          
     (a) The bank shall be  governed by a board of directors                                                                    
     consisting  of  seven  to  nine  natural  persons.  The                                                                    
     number is  determined by the  bank's bylaws.  Two board                                                                    
     members  shall  be appointed  by  the  governor of  the                                                                    
     state. The other board members  shall be elected by the                                                                    
     members of the  bank as provided in  the bank's bylaws,                                                                    
     except that at  least one of the  elected board members                                                                    
     must be a resident  farmer. The board members appointed                                                                    
     under this section  must be residents of  the state and                                                                    
     meet the requirements of AS 39.05.100."                                                                                    
                                                                                                                                
     Page 1, line 5:                                                                                                            
     Delete "Section 1"                                                                                                         
     Insert "Sec. 2"                                                                                                            
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 7, line 26:                                                                                                           
     Delete "sec. 7"                                                                                                            
     Insert "sec. 8"                                                                                                            
                                                                                                                                
     Page 7, line 28:                                                                                                           
     Delete "sec. 7"                                                                                                            
     Insert "sec. 8"                                                                                                            
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
Representative  Gara reported  that there  was a  statute on                                                                    
the books that required board  members on state boards to be                                                                    
Alaska  residents. He  furthered  that  there was  ambiguity                                                                    
whether or not CFAB was a  state bank. He explained that the                                                                    
purpose  of the  amendment was  to clarify  that CFAB  board                                                                    
members were required to be residents of Alaska.                                                                                
                                                                                                                                
8:48:39 AM                                                                                                                    
                                                                                                                                
Ms. Klingert stated  that she did not see an  issue with the                                                                    
amendment.  She  reported that  when  CFAB  made a  loan  it                                                                    
adhered  to   the  statutes  by   lending  only   to  Alaska                                                                    
residents. She indicated  that members who moved  out of the                                                                    
state  after the  fact  maintained  their membership.  Given                                                                    
that  CFAB  was a  cooperative  she  suggested that  it  was                                                                    
appropriate for members to be  able to elect who they wanted                                                                    
to  represent  them  and  that  they  would  potentially  be                                                                    
impaired to  do so by having  less of a selection  to choose                                                                    
from with the amendment.                                                                                                        
                                                                                                                                
Co-Chair  Austerman  suggested  that if  the  amendment  was                                                                    
incorporated  into the  Alaska  Statutes it  would be  clear                                                                    
that only  Alaska residents would  be eligible  for election                                                                    
to CFAB's  board of  directors. He  asserted that  the issue                                                                    
was not complicated.                                                                                                            
                                                                                                                                
Co-Chair Stoltze  remarked that  fishermen who had  moved to                                                                    
Seattle   rationalized  the   expansion  in   the  bill   by                                                                    
expressing that  they were still  Alaskans in  their hearts.                                                                    
He  noted approval  from other  committee members.  He asked                                                                    
Ms. Klingert  whether or not  she was advocating  moving out                                                                    
of state.                                                                                                                       
                                                                                                                                
8:51:32 AM                                                                                                                    
                                                                                                                                
Ms.  Klingert  replied  that other  permit  holders  resided                                                                    
outside of Alaska. She agreed with the statement.                                                                               
                                                                                                                                
Representative Guttenberg clarified that  a board member had                                                                    
to be an  Alaska resident at the time  of their appointment.                                                                    
He remarked that it was pretty clear and simple.                                                                                
                                                                                                                                
Co-Chair  Stoltze stated  that he  initially thought  he was                                                                    
going  to  vote against  the  bill  but after  talking  with                                                                    
commercial fishermen he did not see it as deleterious.                                                                          
                                                                                                                                
Co-Chair Austerman  interjected that  the bill did  not just                                                                    
apply  to   commercial  fishermen.   He  stressed   that  it                                                                    
pertained to all people making applications with CFAB.                                                                          
                                                                                                                                
Co-Chair  Stoltze  acknowledged  Representative  Austerman's                                                                    
point.                                                                                                                          
                                                                                                                                
8:53:21 AM                                                                                                                    
                                                                                                                                
Vice-Chair Neuman asked if the  intent was for board members                                                                    
to be Alaska  residents. He further inquired  whether or not                                                                    
members who  moved out  of state  would remain  eligible for                                                                    
reappointment.                                                                                                                  
                                                                                                                                
Ms. Klingert  replied that  the terms  were three  years for                                                                    
both the  board members  elected by  the membership  and two                                                                    
governor-appointed delegates.                                                                                                   
                                                                                                                                
8:54:16 AM                                                                                                                    
                                                                                                                                
Vice-Chair Neuman  asked whether  or not board  members were                                                                    
subject  to legislative  approval. Ms.  Klingert replied  in                                                                    
the negative.                                                                                                                   
                                                                                                                                
Vice-Chair Neuman  assumed that board members  who moved out                                                                    
of state would not be eligible for reappointment.                                                                               
                                                                                                                                
Representative  Munoz asked  about the  current requirements                                                                    
for  board  membership  and  about   how  many  were  Alaska                                                                    
residents.                                                                                                                      
                                                                                                                                
Ms. Klingert replied that  aside from the governor-appointed                                                                    
seats, one  board seat  had to  be filled  by a  farmer, the                                                                    
other two seats had to be  filled with bank members who were                                                                    
not involved in litigation with the bank.                                                                                       
                                                                                                                                
Representative  Munoz asked  whether or  not there  were any                                                                    
non-residents on the board currently.                                                                                           
                                                                                                                                
Ms. Klingert  stated that  to her  knowledge the  board only                                                                    
consisted of Alaska residents.                                                                                                  
                                                                                                                                
8:55:56 AM                                                                                                                    
                                                                                                                                
Representative  Gara  remarked that  the  law  would not  be                                                                    
interpreted  any  differently  from  the  law  that  already                                                                    
existed for all  other boards. He believed  that the current                                                                    
law was  interpreted to  mean that board  members had  to be                                                                    
Alaska  residents and  if their  status  changed they  would                                                                    
lose  their eligibility.  He reiterated  that the  amendment                                                                    
guaranteed  clarity  that  the  law applied  to  CFAB  board                                                                    
members.                                                                                                                        
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO further OBJECTION, Amendment 2 was ADOPTED.                                                                      
                                                                                                                                
Representative Costello  pointed to  the fiscal  impact note                                                                    
from   Department  of   Commerce,  Community   and  Economic                                                                    
Development including $5.7  thousand in FY 16 and  FY 19 for                                                                    
travel and  a change in revenue  of $23.5 thousand in  FY 15                                                                    
and FY 19.                                                                                                                      
                                                                                                                                
8:57:59 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Neuman  MOVED to  REPORT  CSHB  121(FIN) out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  121(FIN)  was  REPORTED  out  of  committee  with  "no                                                                    
recommendation"  and with  one new  fiscal impact  note from                                                                    
the   Department  of   Commerce,   Community  and   Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
8:58:29 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:59:10 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB160 Sectional Analysis - Legal.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Sectional Analysis.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Sponsor Statement.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Supporting Documents- Athletic Trainer Profession Sheet.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Supporting Documents- Athletic Trainers Fact Sheet.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Supporting Documents- Letter ASAA 2-21-14.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Supporting Documents- Letter Daniel Esparza 2-21-14.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Supporting Documents- Letter Dennis Sorenson 2-21-14.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Supporting Documents- Letter John Jessen 2-21-14.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Supporting Documents- Letter John Snead 2-21-14.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Supporting Documents- Letter Ryan Theuer 2-21-14.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Supporting Documents- Letter Kathleen Navarre 2-20-14.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB160 Supporting Documents- Letter Michael Vincent 2-21-14.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB 160 Email Repsonse from Div CorpBusi Prof Licensing.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB 160 Legal Opinion.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB Athletic Trainer Personal Trainer Comparison.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
HB 121 - CS(FIN) Ver O - 4.4.14.pdf HFIN 4/10/2014 8:30:00 AM
HB 121
table_5_crime_in_the_united_states_by_state_2012 (1).xls HFIN 4/10/2014 8:30:00 AM
SB 56
SB 56 Prisoners in 2012.pdf HFIN 4/10/2014 8:30:00 AM
SB 56
SB 56 Reclassification Presentation Edited 04_10_14.pdf HFIN 4/10/2014 8:30:00 AM
SB 56
HB 160 Letter McKee.pdf HFIN 4/10/2014 8:30:00 AM
HB 160
04.10.14 DPS Testimony to H FIN on SB 56.pdf HFIN 4/10/2014 8:30:00 AM
SB 56