Legislature(2025 - 2026)SENATE FINANCE 532
03/20/2025 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB31 | |
| SB39 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 31 | TELECONFERENCED | |
| + | SB 39 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
March 20, 2025
9:01 a.m.
9:01:36 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:01 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Mike Cronk
Senator James Kaufman
Senator Jesse Kiehl
Senator Kelly Merrick
MEMBERS ABSENT
None
ALSO PRESENT
Senator Jesse Kiehl, Sponsor; Lauree Morton, Deputy
Director, Alaska Network on Domestic Violence and Sexual
Assault (ANDVSA); Senator Forrest Dunbar, Sponsor; Cort
Walker, Vice President of Product and Risk, Check City and
Online Lending Alliance, Juneau.
PRESENT VIA TELECONFERENCE
Randy McLellan, President, Alaska Correctional Officers
Association; Claire Lubke, Alaska Public Interest Research
Group (AKPIRG); Andy Bartel, Reverend, Alaska United
Methodist Conference; Elora Rayhan, State Government
Affairs Analyst, American Finance Services Association, San
Diego; Cathy Brennan, Attorney, Hudson Cook Law Firm,
Maryland; Reverend Michael Burke, Rector, St. Mary
Episcopal Church, Anchorage; Teresa Wrobel, Program
Specialist for Policy and Advocacy, Alaska Children's
Trust, Anchorage; Joseph Rubin, Vice President of Public
Policy, Opportunity Financial, Chicago, Illinois; Robert
Schmidt, Director, Division of Banking and Securities,
Department of Commerce, Community, and Economic
Development; Daniel Rhea, Senior Director of Public
Affairs, Elevate Credit of Fort Worth, Texas; Chris Grimm,
Head of State Government Affairs, Innovative Lending
Platform Association, Virginia; Andrew Duke, Chief
Executive Officer, Online Lenders Alliance, Arlington,
Virginia; Nico Reijns, Reverend, Anchorage; Patrick
Brenner, President, Southwest Public Policy Institute, New
Mexico; Rachael Miller, Chief Advocacy Officer, Foodbank of
Alaska, Anchorage; Edward D'Alessio, Executive Director,
INFIN Financial Services Alliance, Washington D.C.; Marge
Stoneking, Advocacy Director, AARP Alaska, Anchorage.
SUMMARY
SB 31 ADDRESS CONFIDENTIALITY PROGRAM
SB 31 was HEARD and HELD in committee for further
consideration.
SB 39 LOANS UNDER $25,000; PAYDAY LOANS
SB 39 was HEARD and HELD in committee for further
consideration.
Co-Chair Hoffman reviewed the meeting agenda.
SENATE BILL NO. 31
"An Act relating to the duties of the Department of
Administration; creating an address confidentiality
program; and providing for an effective date."
9:02:24 AM
Co-Chair Hoffman invited Senator Kiehl and his staff to the
table to present the bill.
SENATOR JESSE KIEHL, SPONSOR, introduced the legislation.
The bill created an address of confidentiality program,
which would help individuals stay safe. Alaska was one of
six states without the program. He explained the details of
the proposed program. The bill did not allow anyone who was
a registered sex offender to participate in the program to
obscure their address. He thanked the Department of
Administration (DOA), with its reevaluated fiscal note that
significantly reduced the cost of running the program. He
noted that his staff could provide a more detailed
sectional if the committee wanted.
Senator Kaufman asked for further detail regarding the
reduction of the fiscal note.
Senator Kiehl replied that it was most important look at
the subscription rates. He stated that when one first
looked at the program it could seem that everyone would
sign up, but that was not the case. The option would not be
helpful to a person with a social media account. It was
limited application to people who feared for their lives
and the lives of their families. The program was based on
programs with many years of experience in other states.
Co-Chair Hoffman noted individuals available for questions.
9:08:58 AM
Co-Chair Hoffman moved to invited testimony.
RANDY MCLELLAN, PRESIDENT, ALASKA CORRECTIONAL OFFICERS
ASSOCIATION (via teleconference), noted he also worked for
the Department of Corrections. The correctional officer was
concerned about a potentially violent offender paying their
home a visit while the officer was at work, putting the
officer's family in danger. He shared a personal
experience. He had worked in a pretrial facility where an
offender had threatened him and his family on a daily
basis. The offender had stated he would bail out soon and
would pay the officer's family a visit. He relayed it was
something to take seriously and he had taken measures to
protect his personal information. He thanked the committee
for its time.
9:13:00 AM
LAUREE MORTON, DEPUTY DIRECTOR, ALASKA NETWORK ON DOMESTIC
VIOLENCE AND SEXUAL ASSAULT (ANDVSA), provided detail about
the organization, which supported the legislation. She read
from prepared remarks. She stated that violence frequently
escalated at one of the most dangerous times for victims
was when they attempted to leave and remarked on situations
where protective orders were not in the best interest of
the victim. She remarked that providing information through
the protective order put the victim at greater risk. She
believed the option under the bill would be used
occasionally. She relayed that 85 percent of completed
homicides were stalked. She thanked the committee.
9:16:27 AM
Co-Chair Hoffman OPENED public testimony.
Co-Chair Hoffman CLOSED public testimony.
Co-Chair Hoffman asked Co-Chair Stedman to review the
fiscal notes.
Co-Chair Stedman reviewed the fiscal note OMB component
2333 from the Department of Administration in the amount of
$203,000 in the first year and increasing to $206,000 in
the out years. The other fiscal notes were zero from
Department of Public Safety OMB component 521, 2325, 520.
Co-Chair Hoffman asked for any closing comments from the
sponsor.
Senator Kiehl thanked the committee for its time and looked
forward to advancing it in the future.
SB 31 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 39
"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."
9:18:49 AM
Co-Chair Hoffman asked Senator Dunbar to come to the table
and present the bill.
SENATOR FORREST DUNBAR, SPONSOR, introduced the
legislation. He noted that he supported the previous bill
SB 31. He introduced the legislation with prepared remarks.
He offered to have his staff review the sectional.
Co-Chair Hoffman listed individuals available for
questions.
9:23:23 AM
Co-Chair Hoffman moved to invited testimony.
CLAIRE LUBKE, ALASKA PUBLIC INTEREST RESEARCH GROUP
(AKPIRG) (via teleconference), testified in support of the
legislation. She relayed that payday loans were a debt trap
that made things worse. She remarked that it was common
knowledge that some payday lenders were charging up to 500
percent interest on loans. Veterans were frequently
targeted by payday lenders. She thanked the committee.
9:26:57 AM
ANDY BARTEL, REVEREND, ALASKA UNITED METHODIST CONFERENCE
(via teleconference), spoke in support of the bill. He
shared that the church members were struggling. He read
from prepared remarks. He implored the committee to pass
the bill.
9:29:30 AM
AT EASE
9:29:42 AM
RECONVENED
Co-Chair Hoffman OPENED public testimony. He limited
testimony to two minutes.
CORT WALKER, VICE PRESIDENT OF PRODUCT AND RISK, CHECK CITY
AND ONLINE LENDING ALLIANCE, JUNEAU, relayed that they were
based out of Provo, Utah, and spoke in opposition to the
bill. He relayed that if the bill passed it would limit the
credit options for individuals. He stated that the consumer
was not present saying they did not want the option. He did
not believe prohibition was a smart choice.
9:32:34 AM
ELORA RAYHAN, STATE GOVERNMENT AFFAIRS ANALYST, AMERICAN
FINANCE SERVICES ASSOCIATION, SAN DIEGO (via
teleconference), provided details about the association.
She stated the association's main concern with the bill was
its definition of interest. Current law provided a clear
nationally recognized definition of interest. She asked the
committee to reconsider the definition in the bill.
9:35:11 AM
CATHY BRENNAN, ATTORNEY, HUDSON COOK LAW FIRM, MARYLAND
(via teleconference), shared that the firm represented
banks and spoke against the bill. She stated that the bill
would impair the ability of banks to make loans to
Alaskans. She thanked the committee for its time.
9:37:38 AM
REVEREND MICHAEL BURKE, RECTOR, ST. MARY EPISCOPAL CHURCH,
ANCHORAGE (via teleconference), testified in strong support
of the bill. He shared that as a pastor of almost 30 years
he had seen the negative effects of payday loans on
everyday families. He relayed that families were often
drawn to the funds but then found themselves in debt. He
stated that the prior testimony about the fees was
completely disingenuous.
9:39:22 AM
TERESA WROBEL, PROGRAM SPECIALIST FOR POLICY AND ADVOCACY,
ALASKA CHILDREN'S TRUST, ANCHORAGE (via teleconference),
spoke in strong support of the legislation. She stated that
the bill was important because of the payday loan's
negative impacts on Alaskan families. She shared that in
recent years credit unions had begun to offer alternative
options from payday loans to families. She thanked the
committee.
9:41:20 AM
JOSEPH RUBIN, VICE PRESIDENT OF PUBLIC POLICY, OPPORTUNITY
FINANCIAL, CHICAGO, ILLINOIS (via teleconference),
testified against the bill. He shared that there was almost
4,000 loans to consumers in Alaska in 2022 and 2023. He
stated that the bill had far greater impacts on loans
outside of payday loans. He thought the information was
being kept from the committee. He stated that 67 percent of
consumers lived paycheck to paycheck. He stated that the
consumers would have little access to credit if the bill
passed.
9:43:19 AM
ROBERT SCHMIDT, DIRECTOR, DIVISION OF BANKING AND
SECURITIES, DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC
DEVELOPMENT (via teleconference), was available for
questions only.
9:43:48 AM
DANIEL RHEA, SENIOR DIRECTOR OF PUBLIC AFFAIRS, ELEVATE
CREDIT OF FORT WORTH, TEXAS (via teleconference), spoke
against the bill. He shared that the average consumer
needed online access to credit, so consumers were able to
build credit while keeping emergencies at bay.
9:45:43 AM
CHRIS GRIMM, HEAD OF STATE GOVERNMENT AFFAIRS, INNOVATIVE
LENDING PLATFORM ASSOCIATION, VIRGINIA (via
teleconference), testified in opposition to the bill. He
shared that the association opposed the bill that went far
beyond the reach of the state. He shared that it would also
impact the financial system, and impact the Alaska small
loan lender. He shared that the credit crunch caused by new
barriers could have a disastrous impact on the economy. He
thanked the committee.
Co-Chair Hoffman recognized Representative Ted Eischeid in
the room.
9:47:58 AM
ANDREW DUKE, CHIEF EXECUTIVE OFFICER, ONLINE LENDERS
ALLIANCE, ARLINGTON, VIRGINIA (via teleconference), spoke
against the legislation. He noted that most loans had a
credit constraint. Conventional loans came with high
eligibility requirements, they did not come close to
meeting demand. The bill would reduce credit options and
restrict options available for Alaskans.
9:50:13 AM
NICO REIJNS, REVEREND, ANCHORAGE (via teleconference),
testified in support of the legislation. He stated that
payday loan companies were offering credits to desperate
people, but was not helping individuals to navigate
resources, but rather would further entrap them. He
provided an example of a mother who opted for payday loans,
but was not able to finally pay it in full. He stressed
that story after story showed there was a need for active
credit, but reform was needed.
9:52:26 AM
PATRICK BRENNER, PRESIDENT, SOUTHWEST PUBLIC POLICY
INSTITUTE, NEW MEXICO (via teleconference), spoke against
the legislation. He shared that he was a consumer advocate,
and felt that credit unions had not filled the void of the
availability of loans. He had personally applied for small
dollar loans, but he had been rejected by all banks. He
stated that accessing loans was nearly impossible for most
consumers. He did not support the bill.
9:54:40 AM
RACHAEL MILLER, CHIEF ADVOCACY OFFICER, FOODBANK OF ALASKA,
ANCHORAGE (via teleconference), testified in support of the
legislation. She stressed that when a family was hungry,
they were already in a vulnerable situation, and payday
loans capitalized on the situation, resulting in getting
caught in a debt spiral. She thanked the committee.
9:56:55 AM
EDWARD D'ALESSIO, EXECUTIVE DIRECTOR, INFIN FINANCIAL
SERVICES ALLIANCE, WASHINGTON D.C. (via teleconference),
testified against the bill. He stated that the bill would
eliminate the ability for Alaskans to operate as small
lenders. relied on by thousands of Alaskans. He felt that
the bill would prevent consumers from over borrowing and
getting trapped in a cycle of debt. The bill would
eliminate a product consumers had come to rely. He stated
that the interest rate was very reasonable all things
considered. He urged the committee against passing the
bill.
10:01:01 AM
MARGE STONEKING, ADVOCACY DIRECTOR, AARP ALASKA, ANCHORAGE
(via teleconference), testified in support of the bill. She
supported the 36 percent maximum interest rate in the bill.
She relayed that high costs of loans were likely to impact
older Alaskans, and stressed that borrowers were often
unable to work or return to work.
10:03:03 AM
Co-Chair Hoffman CLOSED public testimony.
Co-Chair Hoffman asked Co-Chair Stedman to review the
fiscal notes.
Co-Chair Stedman reviewed the previously published FN1 from
the Department of Commerce, Community and Economic
Development in the amount of -$19,500 general funds.
Co-Chair Stedman asked for any comments from the bill
sponsor.
Senator Dunbar thought the public testimony reflected the
greed of online lenders, and specifically spoke to the
comments from opposition. He thanked the committee for
hearing the bill.
Senator Kiehl was interested in the opinion of the Division
of Banking and Securities. He referenced states that had
implemented the cap. He asked what happened to bankruptcy
rates in other states.
Senator Dunbar deferred to Andrew Kushner with the Center
for Responsible Lending.
Co-Chair Hoffman asked to receive a written response to the
question.
10:07:04 AM
Senator Kaufman heard some dissonance that he would like to
hear more about pertaining to the flat fee. He asked about
the relationship with pawnshop loans. He wondered about the
black market. He wondered if the bill closed the
opportunity whether it would mean the black market would
step in. He asked if they would be creating a predatory
lending situation.
Senator Dunbar did felt that the issue was more related to
regulations about legalized gambling because there were
predatory business owners. He remarked that the there was a
collateral nature to the pawn shop issue.
Senator Kaufman asked about the disconnect about whether it
was a flat fee, and the perpetuation of the loan.
Senator Dunbar stressed that the key fact was the rolling
over of the loan, which resulted in the compounding loans.
10:10:16 AM
Senator Kaufman asked about the number of complaints. He
noted one testifier stated there was only one complaint
since 1993. He asked if there were more complaints and
where he could find them.
Senator Dunbar answered that the complaints went through
the Department of Law. People who used the loans were often
not in a circumstance to contact the state to complain.
Co-Chair Hoffman asked for any closing comments.
Senator Dunbar thanked the committee.
SB 39 was HEARD and HELD in committee for further
consideration.
Co-Chair Hoffman reviewed the schedule for the following
meeting.
ADJOURNMENT
10:12:20 AM
The meeting was adjourned at 10:12 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 31 APOA Letter of Support.pdf |
SFIN 3/20/2025 9:00:00 AM |
SB 31 |
| SB 31 NEW DOA - SSOA - 03042025.pdf |
SFIN 3/20/2025 9:00:00 AM |
SB 31 |
| SB 31 Letters of Support version N 2.18.25.pdf |
SFIN 3/20/2025 9:00:00 AM |
SB 31 |
| SB 31 Sectional Analysis version N 2.18.25.pdf |
SFIN 3/20/2025 9:00:00 AM |
SB 31 |
| SB 31 Sponsor Statement version N 2.18.25.pdf |
SFIN 3/20/2025 9:00:00 AM |
SB 31 |
| SB 39 Letters of Opposition 2.25.2025.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |
| SB 39 Comment Letter OMF 03.17.2025.pdf |
SFIN 3/20/2025 9:00:00 AM |
SB 39 |
| SB 39 Letters of Support 2.25.2025.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |
| SB 39 Sectional Analysis version N 2.25.2025.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |
| SB 39 Sponsor Statement Version N 2.25.2025.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |
| SB 39 Summary of Changes Version N 2.25.2025.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |
| SB 39 Supporting Documents.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |
| SB 39 OLA - Alaska Comment Letter.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |
| SB 39 Opposition Testimony ILPA AK.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |
| SB 39 Hudson Cook Testimony.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |
| SB 39 Miller Testimony 2025.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |
| SB 39 AFSA comment letter - AK SB 39 rate caps 03.20.2025.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |
| SB 31 Address Confidentiality Program Testimony Hope.pdf |
SFIN 3/20/2025 9:00:00 AM |
SB 31 |
| SB 39 03.26.25 SFIN Follow-Up to 03.20.25 Hearing.pdf |
SFIN 3/20/2025 9:00:00 AM SFIN 4/9/2025 9:00:00 AM |
SB 39 |