Legislature(2023 - 2024)BELTZ 105 (TSBldg)
04/30/2024 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB347 | |
| SB264 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 347 | TELECONFERENCED | |
| *+ | SB 264 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
April 30, 2024
1:32 p.m.
MEMBERS PRESENT
Senator Forrest Dunbar, Chair
Senator Elvi Gray-Jackson
Senator Jesse Bjorkman
MEMBERS ABSENT
Senator Donald Olson, Vice Chair
Senator Cathy Giessel
COMMITTEE CALENDAR
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 347(CRA) AM
"An Act relating to assessment of property, boards of
equalization, and certification of assessors; and providing for
an effective date."
- HEARD & HELD
SENATE BILL NO. 264
"An Act relating to loans in an amount of $25,000 or less;
relating to the Nationwide Multistate Licensing System and
Registry; relating to deferred deposit advances; and providing
for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 347
SHORT TITLE: PROPERTY ASSESSMENT
SPONSOR(s): REPRESENTATIVE(s) COULOMBE
02/20/24 (H) READ THE FIRST TIME - REFERRALS
02/20/24 (H) CRA
03/12/24 (H) CRA AT 8:00 AM BARNES 124
03/12/24 (H) Heard & Held
03/12/24 (H) MINUTE(CRA)
03/14/24 (H) CRA AT 8:00 AM BARNES 124
03/14/24 (H) Heard & Held
03/14/24 (H) MINUTE(CRA)
03/19/24 (H) CRA AT 8:00 AM BARNES 124
03/19/24 (H) Moved CSHB 347(CRA) Out of Committee
03/19/24 (H) MINUTE(CRA)
03/20/24 (H) CRA RPT CS(CRA) 4DP 2NR 1AM
03/20/24 (H) DP: MCCABE, BAKER, MCKAY, MCCORMICK
03/20/24 (H) NR: MEARS, HIMSCHOOT
03/20/24 (H) AM: RUFFRIDGE
04/08/24 (H) RLS AT 6:00 PM GRUENBERG 120
04/08/24 (H) -- MEETING CANCELED --
04/22/24 (H) BEFORE HOUSE IN SECOND READING
04/25/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
04/25/24 (S) <Pending Referral>
04/26/24 (H) TRANSMITTED TO (S)
04/26/24 (H) VERSION: CSHB 347(CRA) AM
04/29/24 (S) READ THE FIRST TIME - REFERRALS
04/29/24 (S) CRA, FIN
04/30/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 264
SHORT TITLE: LOANS UNDER $25,000; PAYDAY LOANS
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS
04/26/24 (S) READ THE FIRST TIME - REFERRALS
04/26/24 (S) CRA
04/30/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
REPRESENTATIVE JULIE COULOMBE, District 11
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 347.
EDRA MORLEDGE, Staff
Representative Julie Coulombe
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the summary of changes for HB 347.
DAN NELSON, State Assessor
Community and Regional Affairs Division
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the discussion of
HB 347.
ARIELLE WIGGIN, Staff
Senator Forrest Dunbar
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 264 on behalf of the Senate
Community and Regional Affairs Committee, Senator Dunbar, Chair,
and paraphrased the sectional analysis.
JEN GRIFFIS, Vice President of Policy and Advocacy
Alaska Children's Trust
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation in support of SB
264.
GRAHAM DOWNEY, Economic Justice League
Alaska Public Interest Research Group (AKPIRG)
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation in support of SB 264
and answered questions.
DAWN HANNASCH, Operations Manager
Division of Banking and Securities
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Presented the fiscal note on SB 264.
ACTION NARRATIVE
1:32:17 PM
CHAIR FORREST DUNBAR called the Senate Community and Regional
Affairs Standing Committee meeting to order at 1:32 p.m. Present
at the call to order were Senators Gray-Jackson, Bjorkman, and
Chair Dunbar.
HB 347-PROPERTY ASSESSMENT
1:33:14 PM
CHAIR DUNBAR announced the consideration of CS FOR HOUSE BILL
NO. 347(CRA) am "An Act relating to assessment of property,
boards of equalization, and certification of assessors; and
providing for an effective date."
CHAIR DUNBAR stated this is the introductory hearing of HB 347
in the Senate Community and Regional Affairs Committee. SB 242,
the Senate companion bill, was heard in committee on March 12,
2024, invited and public testimony were heard. He invited the
bill sponsor to introduce HB 347.
1:33:44 PM
REPRESENTATIVE JULIE COULOMBE, District 11, Alaska State
Legislature, Juneau, Alaska, sponsor of HB 347, said that HB 347
is the companion legislation to SB 242. HB 347 establishes
fairness in property tax assessments by setting guidelines for
municipalities while preserving local control. It directs the
Department of Commerce, Community, and Economic Development to
set clear assessment standards for Alaskans while allowing
municipalities to adopt their own to address specific needs. She
explained that HB 347 shifts tax appeals to an appointed board
of equalization instead of a local arraigned body, ensuring
separation between policymakers and quasi-judicial decision-
makers. Many Alaskans may hesitate to speak openly with an
elected official who could later rule on their appeal. HB 347
prohibits municipalities from increasing assessed property
values during an appeal, preventing punitive actions. It also
requires assessors to have the necessary professional experience
and credentials.
1:35:43 PM
CHAIR DUNBAR invited Ms. Morledge to put herself on the record
and present the summary of changes for HB 347.
1:35:49 PM
EDRA MORLEDGE, Staff, Representative Julie Coulombe, Alaska
State Legislature, Juneau, Alaska, presented the summary of
changes for HB 347 and introduced herself.
1:36:12 PM
At ease.
1:37:15 PM
CHAIR DUNBAR reconvened the meeting.
1:37:23 PM
MS. MORLEDGE continued the summary of changes for HB 347.
[Original punctuation provided.]
Summary of Changes CSHB 347(CRA)am
Version 33-LS1430\S.A.
4.25.2024
"An Act relating to assessment of property, boards of
equalization, and certification of assessors; and
providing for an effective date."
• Defined the full and true value of a property as
"the estimated price that the property would bring
in an open market and under the prevailing market
conditions in a sale between a willing seller and a
willing buyer both conversant with the property and
with prevailing general price levels."
1:37:46 PM
CHAIR DUNBAR asked where this change occurs in the bill.
1:37:54 PM
REPRESENTATIVE COULOMBE replied it occurs on page 1, lines 10-12
[lines 7-10].
1:38:01 PM
CHAIR DUNBAR sought confirmation those lines were added to the
bill.
1:38:10 PM
REPRESENTATIVE COULOMBE replied that those lines were
accidentally removed in drafting and were put back into the
bill.
1:38:20 PM
CHAIR DUNBAR asked if these lines were also in the version of
the Senate companion bill.
REPRESENTATIVE COULOMBE replied yes.
1:38:25 PM
MS. MORLEDGE continued the summary of changes, stating the next
change is in Section 3 on page 2, lines 15 -16 [lines 6-7]:
• Allows for a level 3 certification or higher, rather
than requiring only a level 3 certification of a
municipal assessor.
1:38:58 PM
REPRESENTATIVE COULOMBE said that assessors can go up to
level 5. The House did not want to restrict the certification to
a level 3, so it added the words or higher to include level 4
and level 5 assessor certifications.
1:39:16 PM
MS. MORLEDGE said the next change is on page 2, line 18[lines
12-14] and clarified that the change amends Section 4, which
begins on line 10.
• Requires the assessor to meet with a person who has
received an assessment notice they believe to be in
error to advise them of the methods used and to
answer questions of the property owner.
1:40:30 PM
CHAIR DUNBAR reiterated the change, reading the inserted, new
text aloud.
1:40:42 PM
MS. MORLEDGE continued the summary of changes with the final
bullet point, stating the effective date for when a municipality
shall engage a certified level 3 or higher was extended to
January 1, 2026, rather than 2025.
• Extended the effective date for municipalities to
employ or contract with a level 3 certified assessor
to January 1, 2026.
1:41:13 PM
CHAIR DUNBAR stated that some small communities in Alaska
contract assessors who may not live in the community. He asked
if Section 4 allows for a remote meeting with an assessor.
1:41:47 PM
REPRESENTATIVE COULOMBE replied that public testifiers mentioned
difficulty meeting with the assessor. She noted that the
language remains general to allow meetings in person, online, or
by phone. Some public testifiers wanted the assessor to visit
their property. Section 4 does not require an in-person visit
but ensures availability to speak with an assessor.
1:42:46 PM
CHAIR DUNBAR stated that Anchorage has thousands of properties,
making it possible for a group to exploit the system by
organizing hundreds of meeting requests. He noted that the
assessor has a small staff but would still be required to attend
the meetings. This could create a filibuster of the assessor's
office. He asked if this concern was considered during the
drafting of HB 347.
1:43:25 PM
REPRESENTATIVE COULOMBE stated that the issue was not discussed
because 90 percent of problems are resolved through
conversations within the assessor's office. She noted that it is
standard practice to attempt resolution before the Board of
Equalization (BOE) process. Complaints about difficulties
meeting with the assessor came from smaller communities.
1:44:15 PM
SENATOR GRAY-JACKSON stated that in the Municipality of
Anchorage, assessments are typically 10 percent or more below
market value. She asked if the amendment would require
assessments to be at market value.
1:44:36 PM
REPRESENTATIVE COULOMBE asked if the reference was to line 10,
which states, "the full and true value as provided in
standards." She noted that this language was inadvertently
removed from the original bill and does not create a change.
1:45:29 PM
SENATOR GRAY-JACKSON stated that she asked the question because
the Summary of Changes for HB 347 reads, "the estimated price
that the property would bring in an open market and under the
prevailing market conditions," goes further than the language
used in statute.
1:45:56 PM
CHAIR DUNBAR directed the question to Mr. Nelson and asked if he
sees the language in Section 1 as a change in policy or as a
restatement of existing state and local tax policy.
1:46:34 PM
DAN NELSON, State Assessor, Community and Regional Affairs
Division, Department of Commerce, Community and Economic
Development (DCCED), Anchorage, Alaska, answered he sees it as
the same policy.
1:46:54 PM
CHAIR DUNBAR noted that although there is no fiscal note,
municipalities may incur costs if required to have Level 3
assessors. He asked how much it would cost municipalities to
train assessors.
1:47:23 PM
MR. NELSON stated that he was unfamiliar with the costs but was
familiar with Level 3 certification requirements. He described
the point system.
1:49:09 PM
SENATOR GRAY-JACKSON asked how many assessors hold Level 3
certification.
MR. NELSON replied that he does not know the qualification of
each assessor. He stated he would find out the number of
assessors with Level 3 certification.
1:49:54 PM
SENATOR GRAY-JACKSON thanked Mr. Nelson for his offer.
1:50:05 PM
CHAIR DUNBAR asked if the sponsor has a sense of whether Level 3
is a new level of qualification for assessors.
1:50:10 PM
REPRESENTATIVE COULOMBE replied that this discussion was well
vetted among colleagues from small communities. She pointed out
that HB 347 allows Level 3 assessors to oversee lower-level
assessors. She noted that assessor turnover is an issue, and the
[state] will grant Level 3 certification to assessors from the
lower 48 if they have similar qualifications. Small communities
can contract rather than hire a Level 3 assessor. She added that
problems in Haines and Juneau were the result of uncertified
assessors.
1:51:49 PM
CHAIR DUNBAR opened public testimony on HB 347; finding none, he
closed public testimony.
CHAIR DUNBAR held HB 347 in committee.
1:52:20 PM
At ease.
SB 264-LOANS UNDER $25,000; PAYDAY LOANS
1:55:04 PM
CHAIR DUNBAR reconvened the meeting and announced the
consideration of SENATE BILL NO. 264 "An Act relating to loans
in an amount of $25,000 or less; relating to the Nationwide
Multistate Licensing System and Registry; relating to deferred
deposit advances; and providing for an effective date."
CHAIR DUNBAR said this is the introductory hearing of SB 264 in
the Senate Community and Regional Affairs Standing Committee.
The House companion bill is HB 145. He invited Ms. Wiggin to
introduce the bill and present the sectional analysis.
1:55:26 PM
ARIELLE WIGGIN, Staff, Senator Forrest Dunbar, Alaska State
Legislature, Juneau, Alaska, introduced SB 264 on behalf of the
Senate Community and Regional Affairs Committee, Senator Dunbar,
Chair, and paraphrased the sectional analysis. She stated that
invited testimony would address the impact of payday loans. Each
year, approximately 15,000 Alaskans take out payday loans, which
have significant effects. SB 264 aims to remove a special
exception and hold all lenders to the same standards when
issuing loan contracts. General lending institutions are capped
at a 36 percent annual percentage rate (APR), but payday loans
are exempt, drawing vulnerable individuals into a cycle of
financial hardship. She described the 16 sections of SB 264:
Section 1: Simplifies bill wording for clarity, replacing
several phrases with the word "on."
Section 2: Modifies AS 06.01.050(3) to eliminate mentions of the
Deferred Deposit Advances Act in definitions.
Section 3: Broadens the definition of lenders in AS 06.20.010
for loans up to $25,000 insuring it includes various financial
arrangements and practices. It states that a loan occurs in
Alaska if it is completed in Alaska by a resident of Alaska.
This is an issue because several of these organizations are out
of state.
Section 4: Amends AS 06.20.025. It integrates Alaska's licensing
system with a nationwide multistate licensing system registry.
This employes many administrative processes.
Section 5: Allows the collection of investigation fees through
the new system. This amends AS 06.20.030(a).
Section 6: Amends [AS 06.20.030(b)] to collect the licensing
fees through the new system, adjust the licensing structures
without increasing costs for the licensees.
Section 7: Repeals and reenacts AS 06.02.090 updating these
requirements for small loan business licenses to match current
regulator standards. It was partially a cleanup made in the
other body.
Section 8: Eliminates AS 06.20.170 changing the mandatory
inspection period for small loan businesses from fixed 18-month
intervals to as needed for regulatory compliance.
Section 9: Revises AS 06.20.230 to standardize the interest rate
at 3 percent per month for loans up to $25,000, whether they are
closed or open ended to make this loan rate simplified and
consistent.
Section 10: Adds AS 06.20.310 and introduces rules against
interest rate evasion on small loans.
Section 11: Introduces AS 06.20.325 and prevents small
businesses from threatening criminal action against borrowers
who are in default.
Section 12: Amends AS 06.20.900 specify and define registry as
the previously mentioned nationwide multi-state licensing
systems and registry.
Section 13: Adjust AS 08.76.500 to no longer exempt deferred
deposit advanced licensees from certain regulations applying
consistent standards across similar institutions.
Section 14: Amends AS 45.45.020 to ensure that all service
charges are included in the interest rate calculations.
Section 15: Removes multiple sections within the section of law
to clean up financial regulations.
Section 16: The bill will take effect July 1, 2024.
2:00:26 PM
CHAIR DUNBAR announced invited testimony on SB 264.
2:00:57 PM
JEN GRIFFIS, Vice President of Policy and Advocacy, Alaska
Children's Trust, Anchorage, Alaska, testified by invitation in
support of SB 264, which aims to establish reasonable consumer
protections for payday lending practices in Alaska. She
emphasized that economic hardship and poverty significantly
increased the risk of child abuse and neglect, as financial
strain amplifies household stress, anxiety, and frustration. She
explained that payday loans, while offering quick cash, often
trap Alaskans in cycles of debt and poverty, further
exacerbating family instability. She noted that in 2020, neglect
and medical neglect accounted for 75 percent of substantiated
child maltreatment cases in Alaska, highlighting the connection
between economic hardship and child welfare, and urged the
passage of SB 264 to ensure rational safeguards for low-income
families.
2:04:11 PM
GRAHAM DOWNEY, Economic Justice League, Alaska Public Interest
Research Group (AKPIRG), Anchorage, Alaska, testified by
invitation in support of SB 264 and answered questions. He
stated that SB 264 had three core aspects. First, the bill
updated the Small Loans Act (AS 06.20) with requested changes
from the Division of Banking and Securities, which strongly
supported the bill. Second, it simplified Alaska's tiered
interest rate structure by implementing a flat 36 percent cap
for loans under $25,000 while maintaining the default usury rate
for loans above that amount. Third, it established an anti-
evasion provision modeled after laws in New Mexico and Maine to
ensure online, out-of-state lenders complied with Alaska law,
while also providing a safe harbor for lenders operating below
the 36 percent cap, which had received broad industry support.
2:06:45 PM
CHAIR DUNBAR asked about the origin of the 36 percent cap and
whether the 3 percent per month mentioned in the Sectional
Analysis was related to it.
2:07:03 PM
MR. DOWNEY confirmed that the 3 percent per month equated to the
36 percent cap. He stated that the 36 percent rate aligns with
the Military Lending Act, which protects active-duty military
but does not cover veterans or other citizens. He noted that 36
percent is a national standard, with approximately 20 states
adopting similar rate caps.
CHAIR DUNBAR stated that he believed protections already existed
for active-duty military members. He noted his experience as an
officer interacting with junior enlisted personnel and
recognized efforts to exploit service members as they moved
between states. He asked if there was information on how these
laws had been used to protect service members. He also inquired
about the origin of the 36 percent cap and whether there was a
specific policy rationale behind that figure.
MR. DOWNEY stated that the 36 percent cap emerged as a
compromise between consumer groups, like Alaska Public Interest
Research Group (AKPIRG) and mainstream financial institutions.
He explained that 36 percent was considered the upper limit of
reasonable credit, with anything higher seen as wealth
extraction rather than access to credit. He noted that the cap
had broad public and bipartisan support, with most opposition
arguing it was too high rather than too low. He described 36
percent as a balanced upper limit, acknowledging that an ideal
rate might be lower but emphasizing its role as a compromise.
2:09:25 PM
DAWN HANNASCH, Operations Manager, Division of Banking and
Securities, Juneau, Alaska, stated that SB 264, a companion bill
to HB 145, has a simple fiscal note. She explained that the bill
would eliminate Alaska's 19 Deferred Deposit Advance (DDA)
licenses, though those licensees could apply for a Small Loan
Act license instead. She noted that for the 19 DDA licenses the
Division receives a $3,000 biannual renewal fee. She estimated a
fiscal year revenue loss of approximately $28,000, which she
described as not a significant change.
2:11:13 PM
CHAIR DUNBAR opened public testimony on SB 264; finding none, he
closed public testimony.
CHAIR DUNBAR held SB 264 in committee.
2:12:12 PM
There being no further business to come before the committee,
Chair Dunbar adjourned the Senate Community and Regional Affairs
Standing Committee meeting at 2:12 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 347-DCCED-DCRA-03-08-24.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| CSHB 347(CRA)am Sectional Analysis vS.A 4.25.24.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| CSHB 347(CRA)am Summary of Changes vS.A 4.25.24.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| CSHB347 Public Testimony Michael Jones.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| HB 347 Supporting Doc - Support Kreig.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| SB 264 LOS.pdf |
SCRA 4/30/2024 1:30:00 PM |
SB 264 |
| SPPI-Testimony-Alaska-SB264.pdf |
SCRA 4/30/2024 1:30:00 PM |
SB 264 |
| HB 347 Supporting Doc - Support Moriarty.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| SPPI-No-Loan-For-You-Too.pdf |
SCRA 4/30/2024 1:30:00 PM |
SB 264 |
| HB 347 Public Comment 4-25-2024.doc |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| CSHB 347(CRA)am 4.24.24.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| CSHB347A.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| CSHB347 Sponsor Statement (CR&A).pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| CSHB347B.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| OLA Comments - Alaska SB 264.pdf |
SCRA 4/30/2024 1:30:00 PM |
SB 264 |
| Miller AK House Testimony - HB 145.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 145 |
| Alaska VSO Letter - SB264.pdf |
SCRA 4/30/2024 1:30:00 PM |
SB 264 |
| CSHB 347(CRA)am Summary of Changes vS.A 4.30.24 - Corrected.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |
| CSHB 347(CRA)am SCRA Q&A 5.1.24.pdf |
SCRA 4/30/2024 1:30:00 PM |
HB 347 |