Legislature(2009 - 2010)SENATE FINANCE 532
03/23/2010 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB279 | |
| HB300 || HB302 | |
| SB217 | |
| SB284 | |
| SB247 | |
| SB248 | |
| SB262 | |
| SB263 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 279 | TELECONFERENCED | |
| + | SB 217 | TELECONFERENCED | |
| + | SB 284 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 247 | TELECONFERENCED | |
| += | SB 248 | TELECONFERENCED | |
| += | SB 262 | TELECONFERENCED | |
| += | SB 263 | TELECONFERENCED | |
| = | HB 300 | ||
| = | HB 302 | ||
SENATE FINANCE COMMITTEE
March 23, 2010
1:34 p.m.
1:34:41 PM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 1:34 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Senator Joe Paskvan; Tyson Fick, Legislative Liaison,
DCCED; Patrice Walsh, Chief Examiner, DCCED; Bryan Butcher,
Director, Government Affairs and Public Relations, Alaska
Housing Finance Corporation, Department Of Revenue; Joe
Dubler, Director of Finance, Alaska Housing Finance
Corporation; Senator Hollis French.
PRESENT VIA TELECONFERENCE
Scott Smith, Alaska Broadcaster's Association; Alpheus
Bullard, Legislative Legal Services; Matt Wallace, Alaska
Public Interest Research Group; Jason Brune, Resource
Development Council.
SUMMARY
SB 217 GUARANTEED REVENUE BONDS FOR VETERANS
SB 217 was HEARD and HELD in Committee for
further consideration.
SB 247 EXTENDING BOARD OF PHARMACY
SB 247 was REPORTED out of Committee with a "do
pass" recommendation and with a new fiscal impact
note from the Department of Commerce, Community
and Economic Development.
SB 248 EXTEND BD OF MARITAL & FAMILY THERAPY
SB 248 was REPORTED out of Committee with a "do
pass" recommendation and with a new fiscal impact
note from the Department of Commerce, Community
and Economic Development.
SB 262 EXTEND BOARD OF SOCIAL WORK EXAMINERS
SB 262 was REPORTED out of Committee with a "do
pass" recommendation and with previously
published fiscal impact note: FN1 (DCCED).
SB 263 EXTEND BOARD OF PROFESSIONAL COUNSELORS
SB 263 was REPORTED out of Committee with a "do
pass" recommendation and with previously
published fiscal impact note: FN 1 (DCCED).
SB 279 MORTGAGE LENDING
SB 279 was HEARD and HELD in Committee for
further consideration.
SB 284 CAMPAIGN EXPENDITURES
SB 284 was HEARD and HELD in Committee for
further consideration
HB 300 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 300 was HEARD and HELD in Committee for
further consideration.
HB 302 APPROP: MENTAL HEALTH BUDGET
HB 302 was HEARD and HELD in Committee for
further consideration.
1:34:51 PM
SENATE BILL NO. 279
"An Act relating to regulation of residential mortgage
lending, including the licensing of mortgage lenders,
mortgage brokers, and mortgage loan originators, and
compliance with certain federal laws relating to
residential mortgage lending; and providing for an
effective date."
1:35:59 PM
SENATOR JOE PASKVAN stated that SB 279 is an act relating
to the regulation of residential mortgage lending including
the licensing of mortgage lenders, mortgage brokers, and
mortgage loan originators in compliance with certain
federal laws relating to residential mortgage lending. The
purpose of the legislation is to bring Alaska's mortgage
lending regulation act into compliance with federal law. He
mentioned the SAFE act which requires each state to license
mortgage loan originators through a nationwide database and
to amend its statutes to meet minimum licensing standards.
The Division of Banking and Securities will continue to
review the uniform application submitted, and state
regulators will continue to issue the licenses. This
legislation is supported by the National Conference of
State Legislators and the National Conference of Insurance
Legislators.
1:39:31 PM
TYSON FICK, LEGISLATIVE LIAISON, DEPARTMENT OF COMMERCE,
COMMUNITY, AND ECONOMIC DEVELOPMENT (DCCED), explained the
legislation further. He pointed out that abuses in the
industry led to the current financial crisis in the United
States. He explained the licensing regulation agency and
their responsibilities. The national licensing system and
registry increases consumer protection, enhances
supervision, and streamlines the licensing process for
licensees. He mentioned the passage of HB 221 which joined
Alaska with the national registry. He noted that SB 229
will bring the state into compliance with the federal SAFE
act by amending our statutes to reach the minimum
standards. The objectives of the amendments are to provide
increased accountability, education, and tracking of
mortgage lending professions, reduce fraud, and provide
consumers with free and accessible information.
PATRICE WALSH, CHEIF EXAMINER, DCCED, delivered a sectional
analysis. She explained that the changes were the minimum
standards required by the federal government. She pointed
out Page 5, Section 7, Line 9 and the reference to
"transfers of mortgage loan originators license" where
"mortgage loan" was added to "originator". She pointed out
Page 6, Section 11, Line 14 referencing an annual license
where the state requires renewal each year on December 31.
She continued with Section 11, Line 24 regarding permit
regulation to set application, examination, and license
fees. She detailed Page 6, Line 31, Section 12 which
requires 20 hours of pre licensing education. She continued
with Page 10, Section 18, Line 22 which is a new section
allowing for a provisional license while a background check
is performed.
1:45:58 PM
Ms. Walsh continued with Section 22, Page 12, Line 23
referring to paper licenses. The national registry has a
section of consumer access where a licensee's licensing
credentials can be accessed online.
1:47:18 PM
Co-Chair Stedman asked if licenses will be posted in the
licensee's office or would the public rely on the online
version. Ms. Walsh explained that the department is
striving to eliminate paper licenses. She commented that
many businesses operate online.
Ms. Walsh continued with Page 14, Section 29, Line 10 which
is an addition permitting a branch office to track
activity. She continued with Page 15, Section 35, Line 26
which modifies continuing education requirements. Currently
the law offers 24 hours of continuing education for a two
year time period. She pointed out Page 41, Section 85, Line
20 which includes the repealed sections.
1:50:15 PM
Co-Chair Stedman asked about a potential sales transaction
with an out of state licensee. Ms. Walsh answered that an
out of state licensee must apply for a license in Alaska.
Co-Chair Stedman asked if a licensee must be licensed in
Alaska to solicit mortgage business. Ms. Walsh concurred
that the person must have an Alaskan license to sell
Alaskan property.
Senator Huggins asked if the bill allows a person to handle
the mortgage on their neighbor's house. Ms. Walsh stated
that a person must have a license to sell a house that does
not belong to them.
Senator Thomas noted that real estate agents are not
considered mortgage loan originators. Ms. Walsh concurred.
Senator Olson asked about the education requirements listed
on Pages 6 and 15. He asked about potential changes. Ms.
Walsh responded that continuing education requirements
already exist and she noted the changes.
Senator Olson asked about classes. Ms. Walsh noted that
classes are offered through a national mortgage licensing
system. The classes are offered in a classroom, a classroom
equivalent, or an instructor led webinar.
1:54:23 PM
Senator Olson asked about Page 14 and the licensing of
branch offices. He asked how the Alaska branch might
address issues from the lower 48. Ms. Walsh responded that
the branch application process requires branch
identification although licensing and registration numbers
are not used. A formal process would include a separate
registration to allow observation of the branch activity.
Senator Olson did not understand how this would cut down on
fraud.
Co-Chair Stedman asked about potential reciprocity between
the states. Ms. Walsh noted that there is not reciprocity,
but many companies are licensed in multiple states. Co-
Chair Stedman asked why no reciprocity exists for the real
estate industry.
Ms. Walsh responded that the state has requirements about
obtaining a license. She added that the steps for obtaining
a license may be similar throughout various states.
Co-Chair Stedman asked if the steps in the statute refer to
the examination.
1:57:36 PM
Ms. Walsh responded that an application for licensure
requires financial statements and fingerprints. Felonies or
bankruptcies can lead to denial of license.
Co-Chair Stedman asked if a person licensed in another
state is required to sit for an additional exam in Alaska.
Ms. Walsh noted that the mortgage loan originator is
required to take two tests. One test is a national test
recognized in every state. The second component of testing
is the Alaska state test.
Co-Chair Stedman asked if other states have similar
requirements. Ms. Walsh responded yes.
Senator Paskvan stressed that the intent of the bill is to
bring Alaska into conformance with the national SAFE act.
Alaska's laws with respect to real estate can differ from
other state's laws.
Co-Chair Stedman mention one fiscal impact note from the
Department of Commerce, Community and Economic Development
for $131 thousand.
SB 279 was HEARD and HELD in Committee for further
consideration.
2:01:34 PM AT EASE
2:02:36 PM RECONVENE
CS FOR HOUSE BILL NO. 300(FIN)
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; and providing for
an effective date."
CS FOR HOUSE BILL NO. 302(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
Co-Chair Hoffman explained the changes in the CS with the
incorporation of the subcommittee recommendations.
2:03:46 PM AT EASE
2:04:11 PM RECONVENED
Co-Chair Stedman proposed senate committee substitute for
committee substitute, work draft number 26-GH-2823\U. There
being NO OBJECTION, it was so ordered.
Co-Chair Stedman proposed senate committee substitute for
committee substitute, work draft number 26-GH-2825\T. There
being NO OBJECTION, it was so ordered.
CSHB 300 was HEARD and HELD in Committee for further
consideration.
CSHB 302 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 217
"An Act relating to the issuance of state-guaranteed
revenue bonds by the Alaska Housing Finance
Corporation to finance mortgages for qualifying
veterans; and providing for an effective date."
2:05:32 PM
BRYAN BUTCHER, DIRECTOR, GOVERNMENT AFFAIRS AND PUBLIC
RELATIONS, ALASKA HOUSING FINANCE CORPORATION, DEPARTMENT
OF REVENUE, reviewed the legislation. He explained that SB
217 requests approval through general election of bond
sales for Alaska Housing Finance Corporation's (AHFC)
veteran mortgage program. He provided history on the
veteran mortgage program, which provided a lower interest
rate to veterans. He explained that five states opted in;
Texas, California, Oregon, Wisconsin, and Alaska. Alaska
can sell up to $100 million in bonds for the program;
however, federal law requires a general obligation of the
state's citizens.
Co-Chair Stedman asked about the current number of veteran
loans outstanding.
JOE DUBLER, DIRECTOR OF FINANCE, ALASKA HOUSING FINANCE
CORPORATION, responded that $341 million of outstanding
veteran loans exist at an average rate of six percent. The
current interest rate is 4.625 percent. The bonds issued
are $2.6 million. Current outstanding bonds equal $338
million. The remaining authorization from prior voter
approvals is $95 million. He informed of $11 million in
delinquent loans.
Co-Chair Stedman asked if the corporation was seeking
authorization for the $600 million.
Co-Chair Stedman mentioned the one fiscal note from
Department of Revenue requesting authorization to use $150
thousand in AHFC receipts to cover the cost of voter
education. He asked about marketing or information
dissemination to encourage public participation.
Mr. Butcher spoke to the process in 2002, which involved
mailers for every Alaska household along with limited
television and radio advertising.
Senator Egan assumed that the funding would be used for
instruction and information. Mr. Butcher concurred.
SB 217 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 284
"An Act relating to state election campaigns, the
duties of the Alaska Public Offices Commission, the
reporting and disclosure of expenditures and
independent expenditures, the filing of reports, and
the identification of certain communications in state
election campaigns; and providing for an effective
date."
2:12:51 PM
SENATOR HOLLIS FRENCH discussed the legislation. The bill
addresses issues relating to corporations and unions and
the independent expenditures made for and against
candidates during an election. He pointed out Section 4 and
disclosure of expenditures made by unions and corporations
for and against candidates. He noted replacement of old
language on Page 2, Line 6 concerning dues of commission.
He described many instances in the bill where similar
changes occur. He stated that "person" refers to everyone
with a broad definition. He mentioned added provisions that
require that the expenditures be made from an independent
account as shown in Section 8. Section 10 prohibits
expenditures by foreign nationals.
2:16:15 PM
Senator French referred to Section 13, the disclaimer
section. He mentioned that the disclaimer refers to the
"paid for by" section of campaign advertising. He noted
that the disclaimer necessary in radio ads was shortened.
2:18:16 PM
Co-Chair Stedman asked about Page 9, Section 18. Senator
French explained the Section describes a current provision
that replaces the phrase "candidate, group, or individual"
with "person" to bring in the corporations and unions
working with elections.
Co-Chair Stedman asked about punishment for unscrupulous
behavior. Senator French responded that campaign misconduct
in the second degree is a Class B misdemeanor punishable by
a $1000 fine and 90 days in jail.
Senator Huggins asked about the $100 plateau. He noted that
many candidates receive $99 contributions. He asked why all
contributions are not reportable. Senator French responded
that all contributions are reportable; the $100 plateau
requires information such as the contributor's occupation
and employer. He expressed comfort in total disclosure of
contributions to corporations and unions.
Senator Huggins asked how this provision applies to the
Pebble Mine. Senator French answered that those
expenditures would not be immediately identified by this
bill.
Senator Huggins asked how the bill affects a phone bank.
Senator French responded that if the phone bank was
sponsored by a candidate, this bill would have no impact.
He supposed that the phone bank communication transmitted
by auto media must be accompanied by a disclaimer as shown
on Page 8, Lines 4, 5, 6, and 7.
2:22:29 PM
Co-Chair Stedman mentioned one zero fiscal note from the
Office of the Governor and one fiscal impact note from the
Department of Administration requesting one additional
staff person for the Alaska Public Offices Commission for
the amount of $131,200.
2:23:02 PM
SCOTT SMITH, ALASKA BROADCASTER'S ASSOCIATION (via
teleconference) requested clarification of Page 1, Line 11
specifying the effect of the legislation on ballot
propositions. Senator French noted that the mentioned piece
exists already in statute. The change on Page 1, Lines 9,
10, 11 is the elimination of qualifiers. The chapter now
applies to any person making a communication for or against
a ballot proposition.
Mr. Smith communicated that the broadcasters agree with the
need for transparent elections and full disclaimer of
messages for the general population. He expressed a small
concern about the percent of a given message required for
multiple contributors. He suggested that an alternative
dimension of the commercial message communicate the
additional contributors. The clarification would then allow
the limit of the disclaimer not to exceed 33 percent of any
given 30 second message.
2:26:10 PM
MATT WALLACE, ALASKA PUBLIC INTEREST RESEARCH GROUP (via
teleconference) testified in support of the legislation.
2:28:11 PM
JASON BRUNE, RESOURCE DEVELOPMENT COUNCIL (via
teleconference), testified in support of the legislation.
He pointed out Section 15, Page 5 appears to potentially
impact an investor's ability to fight an initiative that
targets them because they are a domestic subsidiary of a
foreign corporation. The Resources Development Council
(RDC) supports open disclosure and transparency in election
campaigns, however are opposed to a law prohibiting
contributions that allow RDC members to fight initiatives
that target their industries.
2:30:08 PM
Senator Huggins discussed Mr. Brune's testimony and asked
if Alaska is in compliance with the Federal Government's
process.
ALPHEUS BULLARD, LEGISLATIVE LEGAL SERVICES responded that
Paragraph 5 applies to a domestic subsidiary of an entity
described in Paragraph 2 of 4. The entity described is a
foreign national. The paragraph does not prohibit domestic
subsidiaries or corporations.
Senator Huggins requested further clarification. Senator
French stressed the importance of creating a bill that can
be easily understood. He offered to provide further
assistance and explanation for Senator Huggins.
SB 284 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 247
"An Act extending the termination date of the Board of
Pharmacy; and providing for an effective date."
2:33:14 PM
Senator Olson spoke to the necessity of the legislation. He
noted that the Board of Pharmacy is a necessary component
of the health care delivery system.
2:34:04 PM AT EASE
2:35:09 PM RECONVENED
Co-Chair Stedman mentioned one fiscal note from the
Department of Commerce, Community and Economic Development
showing the cost of $130,300 in receipt supported services
for the continuation of the board. Funding is included in
the FY11 operating budget.
Co-Chair Hoffman MOVED to report CSSB 247 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 247 was REPORTED out of Committee with a "do pass"
recommendation and with a new fiscal impact note from the
Department of Commerce, Community and Economic Development.
SENATE BILL NO. 248
"An Act extending the termination date of the Board of
Marital and Family Therapy; and providing for an
effective date."
2:36:30 PM
Co-Chair Stedman mentioned one fiscal note from the
Department of Commerce, Community and Economic Development
showing the cost of continuing the board at $23,200 in
receipt supported services.
Co-Chair Hoffman MOVED to report CSSB 248 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 248 was REPORTED out of Committee with a "do pass"
recommendation and with a new fiscal impact note from the
Department of Commerce, Community and Economic Development.
2:37:23 PM
SENATE BILL NO. 262
"An Act extending the termination date of the Board of
Social Work Examiners; and providing for an effective
date."
2:37:36 PM
Co-Chair Stedman mentioned one fiscal note from the
Department of Commerce, Community and Economic Development
showing the cost of continuing the board at $58,800 in
receipt supported services.
Co-Chair Hoffman MOVED to report CSSB 262 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 262 was REPORTED out of Committee with a "do pass"
recommendation and with previously published fiscal impact
note: FN1 (DCCED).
SENATE BILL NO. 263
"An Act extending the termination date of the Board of
Professional Counselors; and providing for an
effective date."
2:38:52 PM
Co-Chair Stedman noted that this is the second hearing on
the bill. He noted the fiscal impact note from the
Department of Commerce, Community and Economic Development
with the cost of $50,900 in receipt supported services.
Co-Chair Hoffman MOVED to report SB 263 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 263 was REPORTED out of Committee with a "do pass"
recommendation and with previously published fiscal impact
note: FN 1 (DCCED).
2:40:10 PM
ADJOURNMENT
The meeting was adjourned at 2:40 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AHFC Vets Loan Activity.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 217 |
| SB217 AHFC Vets Sec Analysis.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 217 |
| SB 217 Vets Bonds Sponsor Statement.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 217 |
| SB 279 About the SAFE Act by HUD.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 279 |
| SB 279 Back-Up.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 279 |
| SB 279 Letters of Support.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 279 |
| SB 279 SAFE Mortgage Licensing Act.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 279 |
| SB 279 Sectional Analysis.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 279 |
| SB 279 Sponsor Statement.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 279 |
| SB 279 Talking Points by Lorie Hovanec.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 279 |
| AG Opinion 02.19.10.PDF |
SFIN 3/23/2010 1:30:00 PM |
SB 284 |
| CSSB284(JUD) Sectional Analysis.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 284 |
| Explanation of Changes CSSB284 JUD.doc |
SFIN 3/23/2010 1:30:00 PM |
SB 284 |
| Leg. Legal Opinion 01.25.10.PDF |
SFIN 3/23/2010 1:30:00 PM |
SB 284 |
| Leg. Legal Opinion 03.17.10.PDF |
SFIN 3/23/2010 1:30:00 PM |
SB 284 |
| SB284 Sponsor Statement.doc |
SFIN 3/23/2010 1:30:00 PM |
SB 284 |
| Statutes Revised by SB284.docx |
SFIN 3/23/2010 1:30:00 PM |
SB 284 |
| SB 300 CS FIN 032310 Version U.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 300 |
| SB 302 CS FIN 032310 Version T.pdf |
SFIN 3/23/2010 1:30:00 PM |
SB 302 |