Legislature(2023 - 2024)BARNES 124
04/21/2023 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB145 | |
| HB126 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 137 | TELECONFERENCED | |
| *+ | HB 138 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | HB 150 | TELECONFERENCED | |
| += | HB 126 | TELECONFERENCED | |
| += | HB 145 | TELECONFERENCED | |
| += | HB 21 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 21, 2023
3:15 p.m.
MEMBERS PRESENT
Representative Justin Ruffridge, Vice Chair
Representative Mike Prax
Representative Dan Saddler
Representative Zack Fields
MEMBERS ABSENT
Representative Jesse Sumner, Chair
Representative Stanley Wright
Representative Ashley Carrick
COMMITTEE CALENDAR
HOUSE BILL NO. 145
"An Act relating to loans in an amount of $25,000 or less;
relating to deferred deposit advances; and providing for an
effective date."
- HEARD & HELD
HOUSE BILL NO. 126
"An Act relating to the Board of Professional Counselors; and
relating to licensing of associate counselors."
- HEARD & HELD
HOUSE BILL NO. 137
"An Act relating to an interstate physical therapy licensure
compact; relating to the licensure of physical therapists,
physical therapist assistants, occupational therapists, and
occupational therapy assistants; and providing for an effective
date."
- BILL HEARING CANCELED
HOUSE BILL NO. 138
"An Act relating to an audiology and speech-language interstate
compact; relating to the practice of audiology and the practice
of speech-language pathology; and providing for an effective
date."
- BILL HEARING CANCELED
HOUSE BILL NO. 150
"An Act relating to residential building codes; relating to
construction contractors and residential contractor
endorsements; and providing for an effective date."
- BILL HEARING CANCELED
HOUSE BILL NO. 21
"An Act relating to group insurance coverage and self-insurance
coverage for school district employees, employees of the
University of Alaska, and employees of other governmental units
in the state; and providing for an effective date."
- BILL HEARING RESCHEDULED TO 4/24/23
PREVIOUS COMMITTEE ACTION
BILL: HB 145
SHORT TITLE: LOANS UNDER $25,000; PAYDAY LOANS
SPONSOR(s): REPRESENTATIVE(s) WRIGHT
03/29/23 (H) READ THE FIRST TIME - REFERRALS
03/29/23 (H) L&C
04/14/23 (H) FIN REFERRAL ADDED AFTER L&C
04/14/23 (H) BILL REPRINTED
04/14/23 (H) L&C AT 3:15 PM BARNES 124
04/14/23 (H) Heard & Held
04/14/23 (H) MINUTE(L&C)
04/19/23 (H) L&C AT 3:15 PM BARNES 124
04/19/23 (H) -- MEETING CANCELED --
04/21/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 126
SHORT TITLE: ASSOCIATE AND PROFESSIONAL COUNSELORS
SPONSOR(s): REPRESENTATIVE(s) WRIGHT
03/22/23 (H) READ THE FIRST TIME - REFERRALS
03/22/23 (H) L&C
03/29/23 (H) L&C AT 3:15 PM BARNES 124
03/29/23 (H) Heard & Held
03/29/23 (H) MINUTE(L&C)
04/19/23 (H) L&C AT 3:15 PM BARNES 124
04/19/23 (H) -- MEETING CANCELED --
04/21/23 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
KRISTI MAGUIRE, representing self
Bivocational Pastor
Juneau, Alaska
POSITION STATEMENT: Gave public testimony during the hearing in
support of HB 145.
ALAN BUDAHL, Executive Director
Lutheran Social Services of Alaska
Anchorage, Alaska
POSITION STATEMENT: Gave public testimony during the hearing in
support of HB 145.
NOEL LOWE, Owner
Alaska Fast Cash
Wasilla, Alaska
POSITION STATEMENT: Gave public testimony during the hearing in
opposition to HB 145.
MARGE STONEKING, Advocacy Director
AARP
Anchorage, Alaska
POSITION STATEMENT: Gave public testimony during the hearing in
support of HB 145.
ELAINE BORDER, Owner
Border Counseling Services
Anchorage, Alaska
POSITION STATEMENT: Gave public testimony during the hearing in
support of HB 126.
RACHEL BUDDIN-YOUNG, Member
Professional Counselors Board
Eagle River, Alaska
POSITION STATEMENT: Gave public testimony during the hearing in
support of HB 126.
ACTION NARRATIVE
3:15:36 PM
VICE CHAIR JUSTIN RUFFRIDGE called the House Labor and Commerce
Standing Committee meeting to order at 3:15 p.m.
Representatives Saddler, Prax, and Ruffridge were present at the
call to order. Representative Fields arrived as the meeting was
in progress.
HB 145-LOANS UNDER $25,000; PAYDAY LOANS
3:16:22 PM
VICE CHAIR RUFFRIDGE announced that the first order of business
would be HB 145, "An Act relating to loans in an amount of
$25,000 or less; relating to deferred deposit advances; and
providing for an effective date."
3:16:32 PM
VICE CHAIR RUFFRIDGE opened public testimony on HB 145.
3:16:55 PM
KRISTI MAGUIRE, representing self, Bivocational Pastor, gave
public testimony in support of HB 145. She stated that she has
worked this past year with the Mutual Aid Network of Anchorage
to help members of the community pay back payday loans. She
said that people living paycheck to paycheck need these loans,
and she cannot think of an ethical reason for the interest rates
to be so high. She expressed praise for the generosity of
Alaskans and encouraged the legislature to create new solutions.
3:19:57 PM
ALAN BUDAHL, Executive Director, Lutheran Social Services of
Alaska, gave public testimony in support of HB 145. He stated
that Lutheran Social Services frequently receives calls from
people who are struggling to pay back payday loans. Oftentimes,
people use such loans to pay rent, and these high interest rates
disproportionately affect low-income individuals. He related a
story of a woman who went in to pay her loan shortly before the
lender closed; however, she was unable to do so and had to pay
significantly more interest.
3:22:11 PM
NOEL LOWE, Owner, Alaska Fast Cash, provided public testimony
during the hearing in opposition to HB 145. He stated that
payday loans are only a small part of his business, as these
loans are less profitable. He explained that payday loans are
meant for those with steady employment but no ties to
traditional lenders. He expressed the opinion that the examples
of predatory payday lending are coming from lenders outside of
Alaska, rather than the brick-and-mortar stores within the
state. He explained that stores in Alaska are highly regulated
by the state; however, online lenders outside of Alaska are not
concerned about regulations in the state. He expressed concern
that the proposed legislation would stop payday lenders in the
state; therefore, more people would have to turn to out of state
lenders. He argued that missing a mortgage or car payment often
has a higher interest rate than a payday loan. He added that
payday loan lenders are required to offer six-month payment
plans which stop more interest from accruing.
3:25:13 PM
REPRESENTATIVE FIELDS asked what percentage of profits come from
payday loans.
MR. LOWE answered approximately 10 percent. In response to a
follow-up question, he stated that the reason for payday loans
having such high interest rates is because the loans do not have
collateral.
REPRESENTATIVE FIELDS asked why there is a high rate of default
for payday loans, if the people taking them have steady
paychecks.
MR. LOWE answered that payday lenders do not want customers to
default, and the income guidelines are posted in the stores. He
added that each loan default is personal for each individual.
In response to a follow-up question, he expressed the belief
that traditional payday loan lenders would not offer this
service in states which have passed laws limiting interest
rates.
3:28:45 PM
REPRESENTATIVE PRAX asked whether payday loan lenders publish
their interest rates and whether they charge processing fees.
MR. LOWE answered that payday loans are short 14-day loans, and
the state allows a 15 percent interest to be charged, with a $5
fee late fee. In response to a follow-up question, he expressed
agreement that the fee is lower than the fee an individual would
be charged for over drafting a bank account.
3:32:08 PM
REPRESENTATIVE SADDLER asked how long the 15 percent interest
rate lasts.
MR. LOWE answered that the 15 percent interest rate is meant to
be for a short 14-day loan. He added that the interest rates
would accrue if it took an entire year to pay the loan posted in
the store. In response to a follow-up question, he said that
income guidelines are posted in the store. He added that the
terms in the agreement are reviewed with each customer, so each
customer understands the process.
REPRESENTATIVE SADDLER expressed doubt in his own ability to pay
back loans at the high interest rates he has seen.
MR. LOWE responded that the highest interest rates only apply to
loans which are not paid back in 365 days, when the loan is
meant to only cover 14 days. He compared this to renting a car
for a month, as the car would cost $50 for only one day, but it
would cost $1,500 for a month.
REPRESENTATIVE SADDLER asked whether a payday lender would
accrue additional costs if a payday loan were not paid back
within 14 days.
MR. LOWE answered that the state allows a borrower to extend the
interest two times. If that individual cannot pay back the
loan, the lender is required to offer a six-month payment plan.
In response to a follow-up question, he said that the only
additional cost is the lost opportunity cost of not being able
to loan the money to another individual.
3:37:10 PM
REPRESENTATIVE PRAX commented that payday loans are difficult to
collect, and the extension periods to pay back the loans have
the effect of reducing the actual posted interest rates.
3:37:44 PM
REPRESENTATIVE SADDLER asked how many borrowers use the six-
month payment plan.
MR. LOWE expressed uncertainty, as it varies seasonally. In
response to a follow-up question, he expressed the belief that
it is less than half. He added that only about 25 percent of
borrowers default.
3:39:29 PM
MARGE STONEKING, Advocacy Director, AARP, gave public testimony
in support of HB 145. She stated that AARP supports HB 145 in
order to protect the financial security of older Alaskans. She
expressed the opinion that older individuals have less options
to pay back debts, and short-term loans are more likely to harm
them than help them. She pointed out that there are small loans
available at banks, and these offer better options than payday
loans.
3:41:55 PM
VICE CHAIR RUFFRIDGE, after ascertaining there was no one else
who wished to testify, closed public testimony.
3:42:19 PM
REPRESENTATIVE PRAX commented that Mr. Lowe's testimony warrants
careful consideration. He said that in the retail business, bad
checks are often not collected because the cost of collecting is
not worthwhile. Although the costs may be high at a payday
lender, high costs and other consequences can occur if a payment
to a bank or credit card company is late. He expressed concern
that the bill would not work as intended and taking such steps
would be akin to putting warning labels on cigarettes.
3:45:15 PM
VICE CHAIR RUFFRIDGE announced that HB 145 was held over.
3:45:45 PM
The committee took an at-ease from 3:45 p.m. to 3:49 p.m.
HB 126-ASSOCIATE AND PROFESSIONAL COUNSELORS
3:49:35 PM
VICE CHAIR RUFFRIDGE announced that the final order of business
would be HB 126, "An Act relating to the Board of Professional
Counselors; and relating to licensing of associate counselors."
3:50:02 PM
VICE CHAIR RUFFRIDGE opened public testimony on HB 126.
3:50:23 PM
ELAINE BORDER, Owner, Border Counseling Services, provided
public testimony in support of HB 126. She shared that she has
been a counselor for 10 years, covering a wide variety of
disciplines. She said that she supports the bill because it
would improve care for Alaskans. She explained that the
proposed legislation would give counselors the ability to learn
a broader range of disciplines and have more accountability.
She stated that the way training hours are currently counted
creates confusion, and this can result in some associate
counselor training hours not being credited correctly. She
added that the bill would also reduce financial burdens on
counseling practices because associate counselors are not
currently covered by insurance companies.
3:54:42 PM
REPRESENTATIVE SADDLER asked whether a patient would face
greater risk if seen by an associate counselor.
MS. BORDER answered that an associate counselor would still
require supervision, so there would not be additional risk. In
response to a follow-up question, she said that many other
states have licenses for associate counselors. She added that
different professions have different levels of training
involved.
3:58:42 PM
REPRESENTATIVE PRAX asked whether Ms. Border is familiar with
malpractice insurance.
MS. BORDER answered yes. She added that even interns in her
field require malpractice insurance. In response to a follow-up
question, she said that malpractice insurance varies by
practice.
4:01:56 PM
RACHEL BUDDIN-YOUNG, Member, Professional Counselors Board, gave
public testimony in support of HB 126. She shared that she is a
licensed counselor and stated that the bill would improve
professionalism by providing a clearer path for those recently
receiving a master's degree. She reiterated previous testimony
in that training hours can be done with the wrong supervision
and cause training hours not to be counted. She expressed the
opinion that creating an associate license would allow those who
have earned master's degrees to receive guidance and the proper
training. She stated that approximately 60 percent of the
country has a similar type of license.
4:06:09 PM
REPRESENTATIVE PRAX asked whether it is correct that individuals
with a master's degree who work at a government agency can use
those hours to earn their license.
MS. BUDDIN-YOUNG answered that earning hours towards receiving a
license requires supervision by a state board approved
individual. She added that the supervisor does not have to be
part of any government agency. In response to a follow-up
question, she said it is correct that insurance companies will
not cover unlicensed trainees.
4:09:46 PM
VICE CHAIR RUFFRIDGE, after ascertaining there was no one else
who wished to testify, closed public testimony.
4:09:58 PM
VICE CHAIR RUFFRIDGE announced that HB 126 was held over.
4:10:03 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:10 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB0021A.PDF |
HL&C 4/21/2023 3:15:00 PM |
HB 21 |