Legislature(2009 - 2010)BARNES 124
03/08/2010 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB354 | |
| HJR51 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 354 | TELECONFERENCED | |
| *+ | HJR 51 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 8, 2010
3:21 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Mark Neuman, Vice Chair
Representative Mike Chenault
Representative Robert L. "Bob" Buch
MEMBERS ABSENT
Representative Bob Lynn
Representative Tammie Wilson
Representative Lindsey Holmes
COMMITTEE CALENDAR
HOUSE BILL NO. 354
"An Act relating to eligibility for loans from the Alaska
capstone avionics revolving loan fund."
- MOVED HB 354 OUT OF COMMITTEE
HOUSE JOINT RESOLUTION NO. 51
Supporting certain changes to proposed regulations to implement
the Secure and Fair Enforcement for Mortgage Licensing Act of
2008.
- MOVED HJR 51 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 354
SHORT TITLE: AK CAPSTONE AVIONICS REVOLVING LOAN FUND
SPONSOR(s): REPRESENTATIVE(s) KELLER
02/19/10 (H) READ THE FIRST TIME - REFERRALS
02/19/10 (H) L&C
02/23/10 (H) TRA REFERRAL ADDED AFTER L&C
03/08/10 (H) L&C AT 3:15 PM BARNES 124
BILL: HJR 51
SHORT TITLE: PROPOSED FED. MORTGAGE LICENSING REGS
SPONSOR(s): REPRESENTATIVE(s) KELLER
02/23/10 (H) READ THE FIRST TIME - REFERRALS
02/23/10 (H) L&C
03/08/10 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
MATTHEW JOHNSON, Staff
Representative Wes Keller
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 354 on behalf of the prime
sponsor, Representative Wes Keller.
CATHY JEANS, Systems Branch Manager
Division of Investments
Department of Commerce, Community, & Economic Development
(DCCED)
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 354.
MONTE GATES
Peninsula Airways
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 354.
CONSTANCE JOY JOURNEAY, Executive Director
Alaska Carriers Association
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HB 354.
JIM POUND, Staff
Representative Wes Keller
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HJR 51 on behalf of the prime
sponsor.
DAVID SOMERS, Political Chair
Alaska Association of Realtors
Fairbanks, Alaska
POSITION STATEMENT: Testified during the discussion of HJR 51.
ACTION NARRATIVE
3:21:12 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:21 p.m. Representatives Olson,
Chenault, Neuman, and Buch were present at the call to order.
HB 354-AK CAPSTONE AVIONICS REVOLVING LOAN FUND
3:21:16 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 354, "An Act relating to eligibility for loans
from the Alaska capstone avionics revolving loan fund."
3:21:42 PM
MATTHEW JOHNSON, Staff, Representative Wes Keller, Alaska State
Legislature, presented an overview of HB 354. In 2008, the
Capstone Avionics Loan Program was established in Alaska. The
impetus for the program was a Federal Aviation Administration
(FAA) pilot program that confirmed the substantial value and
effectiveness of the new avionics technology. The results of
the pilot program revealed that it reduced accident rates in the
trial area by 47 percent. The FAA estimates that full
implementation of the program will result in 33 percent fewer
fatalities statewide. The program was intended to provide loans
for in state operators and carriers to upgrade their avionics.
However, an unforeseen gap exists and those carriers who lease
their aircraft are not eligible for the program. This bill, HB
354, would correct that problem. It would amend the Alaska
Capstone Avionics Revolving Loan Fund program to allow a lessee
of an aircraft that logs a substantial percentage of flight
hours in the state to qualify to apply for loans to purchase
Capstone Avionics equipment. The effect of the change will be
to open up the program funds to lessees of aircraft.
3:23:46 PM
CATHY JEANS, Systems Branch Manager, Division of Investments,
Department of Commerce, Community, & Economic Development
(DCCED), stated that the division manages the Alaska Capstone
Avionics Revolving Loan Fund program. As Mr. Johnson mentioned,
the change would allow individuals that have leased an aircraft
to qualify for loans to purchase and install Capstone Avionics
equipment in aircraft operated in Alaska. The current law only
allows aircraft owners to qualify. Lessees of aircraft would
still need to meet all of the program requirements, including
collateral, credit, and capacity for repayment. The Division of
Investments (DOI) anticipates a small number of additional loan
requests with passage of HB 354. The Alaska Capstone Avionics
Revolving Loan Fund program has adequate resources to handle the
requests and will not need additional operating funds to
administer the change. The DOI supports the bill as it should
increase safety for the Alaskan flying public.
3:25:25 PM
REPRESENTATIVE BUCH recalled that this proposed bill would have
a small impact in Alaska. He related his understanding that
enhancing the program would allow more people to qualify for the
program loans.
MS. JEANS agreed. This bill would allow lessees of aircraft to
apply for loans to install Capstone Avionics in leased aircraft.
Currently, this program is limited to owners of aircraft.
3:26:12 PM
REPRESENTATIVE CHENAULT asked whether any liability issues will
result with passage of HB 354.
MS. JEANS stated that she is unaware of any liability issues
created by installing Capstone Avionics equipment in aircraft.
She offered to check with the FAA and report back.
CHAIR OLSON remarked that one result would be to reduce
liability insurance premiums and hull coverage, as well.
3:27:06 PM
MONTE GATES, Peninsula Airways, stated that a large portion or 7
of 10 SAAB 340 aircraft Peninsula Airways are leased. Peninsula
Airways would like to install new equipment, but must install
the equipment in the whole fleet, which would mean they must
rewrite all the lease agreements for seven aircraft. The
alternate method of amending the statute would allow a more
direct approach for eligibility for the Capstone Avionics
Revolving Loan Program.
3:28:27 PM
CONSTANCE JOY JOURNEAY, Executive Director, stated that the
Alaska Air Carriers support this change. More than half of the
carriers lease portions of their fleet and this bill would allow
their aircraft to be eligible for the program.
3:29:24 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 354.
REPRESENTATIVE NEUMAN moved to report HB 354 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 354 was reported from the
House Labor and Commerce Standing Committee.
The committee took an at-ease from 3:29 p.m. to 3:31 p.m.
3:31:29 PM
HJR 51-PROPOSED FED. MORTGAGE LICENSING REGS
3:31:36 PM
CHAIR OLSON announced that the final order of business would be
HOUSE JOINT RESOLUTION NO. 51, Supporting certain changes to
proposed regulations to implement the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008.
3:31:41 PM
JIM POUND, Staff, Representative Wes Keller, Alaska State
Legislature, explained that in 2008, the Congress passed the
Secure and Fair Enforcement for Mortgage Licensing Act (SAFE).
This legislation was intended to bring standards to home lending
in a "one size fits all" fashion. However, the federal Act
imposes rules that make it more difficult to secure a loan for
certain types of property in Alaska. This resolution would
point out the need to create exemptions for the Alaska housing
market. Cabin properties are often bought and sold in Alaska
between the seller and the purchaser with the seller carrying
the note. The proposed Department of Housing and Urban
Development (HUD) regulations under consideration would not
allow financing by the seller for instances such as when selling
remote cabins used for hunting in Alaska. Licensing
requirements at the state level are tied to federal regulation
and statute, he stated. Of real concern is a mandate that would
require states to adopt this language in state law or lose the
right to license and regulate mortgage loan originators. Thus,
what are commonly known as "conventional loans" may also be at
risk. The proposed HUD regulations need to broaden the
exemptions for seller financing to exempt all sellers who
provide financing for property they own, and cover individuals
who sell property they have inherited, even though it is not
their residence. Additionally, Alaska needs specific examples
that define brokerage firms and allowable activities. He
related proposed legislation is still pending in the
legislature, which will also need to pass or the state may risk
federal government action. Additionally, the SAFE Act requires
all brokers to be fingerprinted for review by the U.S.
Department of Justice, which did not seem necessary.
3:34:36 PM
CHAIR OLSON recalled passing a portion of the legislation needed
to address this issue during the last legislative session. He
related that members are familiar with the issues.
3:34:48 PM
DAVID SOMERS, Political Chair, Alaska Association of Realtors,
stated that the SAFE Act makes a lot of sense in some areas, but
the fact that it excludes the ability to sell and finance a
person's land does not make sense in Alaska. In fact, it does
not make sense in other areas of the country, and some other
states are also concerned, he stated. He also surmised that if
this resolution passes, it will help point out the errors of the
SAFE ACT. It is important to allow people to sell their own
land, and if owners are forced to go through a lender on small
land transactions, the costs range an additional 10 - 20 percent
of the value of the property or higher. People often choose to
owner-finance their own property and they should be able to do
so, he said. He urged members to endorse this resolution.
3:36:26 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HJR 51.
3:36:32 PM
REPRESENTATIVE NEUMAN moved to report HJR 51 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HJR 51 was reported from the
House Labor and Commerce Standing Committee.
3:36:53 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:36 p.m.