Legislature(2019 - 2020)BELTZ 105 (TSBldg)

05/13/2019 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 104 MORTGAGE LOAN ORIGINATOR LICENSING TELECONFERENCED
Moved CSHB 104(L&C) AM Out of Committee
*+ HB 44 AUTOMATED TELLER MACHINES: FEES TELECONFERENCED
Moved HB 44 Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                          May 13, 2019                                                                                          
                           5:26 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lora Reinbold, Chair                                                                                                    
Senator Mia Costello, Vice Chair                                                                                                
Senator Click Bishop                                                                                                            
Senator Chris Birch                                                                                                             
Senator Elvi Gray-Jackson                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 104(L&C) AM                                                                             
"An Act relating to exemptions from mortgage lender, mortgage                                                                   
broker, and mortgage loan originator licensing requirements; and                                                                
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED CSHB 104(L&C) AM OUT OF COMMITTEE                                                                                  
                                                                                                                                
HOUSE BILL NO. 44                                                                                                               
"An Act relating to fees for using an automated teller machine;                                                                 
and providing for an effective date."                                                                                           
                                                                                                                                
     - MOVED HB 44 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 104                                                                                                                  
SHORT TITLE: MORTGAGE LOAN ORIGINATOR LICENSING                                                                                 
SPONSOR(s): REPRESENTATIVE(s) WILSON                                                                                            
                                                                                                                                
03/25/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/25/19       (H)       L&C                                                                                                    
04/10/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/10/19       (H)       -- MEETING CANCELED --                                                                                 
04/17/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/17/19       (H)       -- MEETING CANCELED --                                                                                 
04/26/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/26/19       (H)       Heard & Held                                                                                           
04/26/19       (H)       MINUTE(L&C)                                                                                            
04/29/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/29/19       (H)       Moved CSHB 104(L&C) Out of Committee                                                                   
04/29/19       (H)       MINUTE(L&C)                                                                                            
05/01/19       (H)       L&C RPT CS(L&C) NT 2DP 5NR                                                                             
05/01/19       (H)       DP: HANNAN, LEDOUX                                                                                     
05/01/19       (H)       NR: REVAK, STUTES, TALERICO, FIELDS,                                                                   
                         WOOL                                                                                                   
05/10/19       (H)       TRANSMITTED TO (S)                                                                                     
05/10/19       (H)       VERSION: CSHB 104(L&C) AM                                                                              
05/10/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/10/19       (S)       L&C                                                                                                    
05/10/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
05/10/19       (S)       Heard & Held                                                                                           
05/10/19       (S)       MINUTE(L&C)                                                                                            
05/13/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 44                                                                                                                   
SHORT TITLE: AUTOMATED TELLER MACHINES: FEES                                                                                    
SPONSOR(s): REPRESENTATIVE(s) ORTIZ                                                                                             
                                                                                                                                
02/20/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/20/19       (H)       L&C                                                                                                    
03/18/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/18/19       (H)       Heard & Held                                                                                           
03/18/19       (H)       MINUTE(L&C)                                                                                            
03/20/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/20/19       (H)       Moved HB 44 Out of Committee                                                                           
03/20/19       (H)       MINUTE(L&C)                                                                                            
03/22/19       (H)       L&C RPT 5DP 1NR                                                                                        
03/22/19       (H)       DP: REVAK, HANNAN, FIELDS, LEDOUX, WOOL                                                                
03/22/19       (H)       NR: TALERICO                                                                                           
03/22/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/22/19       (H)       <Bill Hearing Canceled>                                                                                
04/05/19       (H)       TRANSMITTED TO (S)                                                                                     
04/05/19       (H)       VERSION: HB 44                                                                                         
04/08/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/08/19       (S)       L&C                                                                                                    
05/13/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE TAMMIE WILSON                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 104, provided an overview of                                                                
the bill.                                                                                                                       
                                                                                                                                
REPRESENTATIVE DAN ORTIZ                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified as sponsor of HB 44.                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
5:26:27 PM                                                                                                                    
CHAIR  LORA  REINBOLD  called  the   Senate  Labor  and  Commerce                                                             
Standing Committee meeting  to order at 5:26 p.m.  Present at the                                                               
call to  order were Senators  Costello, Birch,  Gray-Jackson, and                                                               
Chair Reinbold. Senator Bishop arrived shortly thereafter.                                                                      
                                                                                                                                
           HB 104-MORTGAGE LOAN ORIGINATOR LICENSING                                                                        
                                                                                                                                
5:27:28 PM                                                                                                                    
CHAIR  REINBOLD announced  the consideration  of HB  104, CS  FOR                                                               
HOUSE BILL NO.  104(L&C) am, "An Act relating  to exemptions from                                                               
mortgage lender,  mortgage broker,  and mortgage  loan originator                                                               
licensing requirements; and providing for an effective date."                                                                   
                                                                                                                                
5:27:55 PM                                                                                                                    
REPRESENTATIVE TAMMIE  WILSON, Alaska State  Legislature, Juneau,                                                               
paraphrased from the sponsor statement for CSHB 104(L&C)AM:                                                                     
                                                                                                                                
     The current Alaska SAFE Act  allows a seller to finance                                                                    
     his or  her residence.  If a person  had more  than one                                                                    
     residence (a  second home for example)  they could sell                                                                    
     and finance  it themselves  without a license  under AS                                                                    
     06.60.015(b)(3). If the second home  had been rented it                                                                    
     would be  considered an income property  and the seller                                                                    
     would be  required to have  a mortgage  loan originator                                                                    
     license in order to seller-finance it.                                                                                     
                                                                                                                                
     CSHB104(L&C) would allow a  person to seller-finance up                                                                    
     to 5  of their  own properties which  are secured  by a                                                                    
     dwelling, whether they are an income property or not.                                                                      
                                                                                                                                
     Interior and more rural  community property owners have                                                                    
     parcels  with trailers  or cabins  on  them; some  with                                                                    
     water  and  electric,  some  without.  These  types  of                                                                    
     properties  are   historically  difficult   to  finance                                                                    
     through  the  traditional  mortgage  process  and  many                                                                    
     times  lenders require  more money  down, shorter  loan                                                                    
     terms, higher  interest rates, and in  some cases, will                                                                    
     not finance them at all.                                                                                                   
                                                                                                                                
     Those  wishing to  take on  the responsibility  of home                                                                    
     ownership  and establish  roots  in  the community  may                                                                    
     find, for many reasons, that  they do not qualify for a                                                                    
     traditional mortgage. Seller  financing is another tool                                                                    
     that can be  utilized to make it affordable  for one to                                                                    
     realize their dream of having  a place they can finally                                                                    
     call their home.                                                                                                           
                                                                                                                                
     Seller financing  is a reasonable and  practical option                                                                    
     for both sellers and buyers of these type properties.                                                                      
                                                                                                                                
     CSHB 104 would  give more opportunity for  the dream of                                                                    
     home  ownership  to  those   who  might  not  otherwise                                                                    
     realize it  and would  relieve the financial  burden of                                                                    
     bona fide  non-profit organizations  assisting Alaskans                                                                    
     in making their dream come true.                                                                                           
                                                                                                                                
5:29:02 PM                                                                                                                    
SENATOR  COSTELLO  asked  if  there  were  any  issues  with  the                                                               
retroactivity  clause. She  asked  for  further clarification  on                                                               
whether there was  a timeframe and if this  allowed for financing                                                               
up to five homes per year.                                                                                                      
                                                                                                                                
5:29:26 PM                                                                                                                    
REPRESENTATIVE  WILSON agreed  the  program allowed  a person  to                                                               
seller-finance  up to  five homes  per year  under the  bill. She                                                               
stated that an  amendment was adopted on the House  floor to make                                                               
it retroactive. She clarified that  many people in Alaska thought                                                               
it was possible for sellers to finance properties.                                                                              
                                                                                                                                
5:30:08 PM                                                                                                                    
SENATOR BISHOP  reviewed the fiscal  note from the  Department of                                                               
Commerce,  Community and  Economic  Development (DCCED),  Banking                                                               
and Securities for HB 104.                                                                                                      
                                                                                                                                
5:30:36 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
5:31:07 PM                                                                                                                    
CHAIR REINBOLD called the committee back to order.                                                                              
                                                                                                                                
SENATOR  BISHOP continued.  The Office  of Management  and Budget                                                               
component number 2808. He read the bill analysis:                                                                               
                                                                                                                                
     This bill  will allow a natural  person, estate, trust,                                                                    
     corporation,  or  another   entity  to  self-finance  a                                                                    
     mortgage loan  on five or fewer  residential properties                                                                    
     owned  by  the seller  during  a  12-month period.  The                                                                    
     mortgage  loan  must  have an  interest  rate  that  is                                                                    
     fixed,  payments   that  do  not  result   in  negative                                                                    
     amortization, and  cannot impose a  prepayment penalty.                                                                    
     The  seller   determines  that  the  purchaser   has  a                                                                    
     reasonable  ability  to  repay  the  loan.  The  seller                                                                    
     cannot  have constructed  the dwelling  or  acted as  a                                                                    
     contractor for  the construction  of the  dwelling that                                                                    
     secures the  loan. The bill  does not require  a change                                                                    
     to regulations. The Division  of Banking and Securities                                                                    
     does  not  anticipate  any  fiscal  impacts  from  this                                                                    
     legislation.                                                                                                               
                                                                                                                                
SENATOR BISHOP said the fiscal note was a zero-fiscal note.                                                                     
                                                                                                                                
5:32:21 PM                                                                                                                    
CHAIR REINBOLD removed her objection.  She reaffirmed that public                                                               
testimony was closed on HB  104. She remarked that she previously                                                               
held  the bill  to allow  Senator  Bishop to  participate in  the                                                               
hearing since Fairbanks  residents expressed significant interest                                                               
in the bill.                                                                                                                    
                                                                                                                                
5:33:16 PM                                                                                                                    
SENATOR COSTELLO  moved to report  CSHB 104(L&C) AM,  version 31-                                                               
LS0257\S.A.  from committee  with individual  recommendations and                                                               
attached fiscal note.                                                                                                           
                                                                                                                                
There being no objection, the motion carried.                                                                                   
                                                                                                                                
5:33:32 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
             HB 44-AUTOMATED TELLER MACHINES: FEES                                                                          
                                                                                                                                
5:34:51 PM                                                                                                                    
CHAIR  REINBOLD   reconvened  the  meeting.  She   announced  the                                                               
consideration of  HB 44. HOUSE BILL  NO. 44, "An Act  relating to                                                               
fees for using an automated  teller machine; and providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
5:35:08 PM                                                                                                                    
REPRESENTATIVE  DAN  ORTIZ,  Alaska  State  Legislature,  Juneau,                                                               
paraphrased from the sponsor's statement.                                                                                       
                                                                                                                                
     The intent  of this bill  is to allow  retail automatic                                                                    
     teller  machines (ATMs)  to charge  a  withdraw fee  on                                                                    
     transactions made by international bank card holders.                                                                      
                                                                                                                                
     Currently,  independently owned  ATMs are  not able  to                                                                    
     charge  a fee  on  transactions  made by  international                                                                    
     card  holders. Our  current law  only pertains  to ATMs                                                                    
     owned by  state-sponsored banks  or credit  unions, and                                                                    
     does not  include retail  and individually  owned ATMs.                                                                    
     Because  of  this  gap, retail  ATMs  cannot  charge  a                                                                    
     withdraw fee  on transactions  from bank  cards outside                                                                    
     of the United States.                                                                                                      
                                                                                                                                
     Alaska welcomes millions of visitors  each year, with a                                                                    
     large  percentage of  those visitors  from  out of  the                                                                    
     country. In  the summer of  2016 alone,  nearly 300,000                                                                    
     international  visitors  came  to  Alaska.  Retail  ATM                                                                    
     owners   cannot   charge   fees  on   these   tourists'                                                                    
     transactions.                                                                                                              
                                                                                                                                
     Multiple  other  states  have already  passed  laws  to                                                                    
     close this gap and allow  retail ATM owners to charge a                                                                    
     transaction fee to international card holders                                                                              
                                                                                                                                
5:36:48 PM                                                                                                                    
SENATOR COSTELLO asked if she has seen the bill previously.                                                                     
                                                                                                                                
REPRESENTATIVE ORTIZ answered yes. He  said that the bill did not                                                               
quite make it through the process during the last legislature.                                                                  
                                                                                                                                
5:37:08 PM                                                                                                                    
SENATOR BIRCH recalled  the bill. He characterized the  bill as a                                                               
good bill. He thanked Representative  Ortiz for bringing the bill                                                               
forward.                                                                                                                        
                                                                                                                                
He remarked  on a mid-air  crash that happened in  Ketchikan that                                                               
resulted   in   loss  of   life.   He   offered  condolences   to                                                               
Representative Ortiz and members of the family and community.                                                                   
                                                                                                                                
REPRESENTATIVE ORTIZ replied that  he appreciated the support and                                                               
condolences.                                                                                                                    
                                                                                                                                
5:37:56 PM                                                                                                                    
CHAIR   REINBOLD  opened   public  testimony   and  after   first                                                               
determining no one wished to  testify, closed public testimony on                                                               
HB 44.                                                                                                                          
                                                                                                                                
5:39:36 PM                                                                                                                    
SENATOR BISHOP reviewed the fiscal note for HB 44 as follows:                                                                   
                                                                                                                                
The Department  of Commerce,  Community and  Economic Development                                                               
(DCCED),  Banking and  Securities prepared  the fiscal  note. The                                                               
Office of Management and Budget component number was 2808.                                                                      
                                                                                                                                
5:40:04 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
5:40:12 PM                                                                                                                    
CHAIR REINBOLD called the committee back to order.                                                                              
                                                                                                                                
SENATOR  BISHOP continued  to  review the  fiscal  note from  the                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), Banking and Securities for HB 44 as follows:                                                                           
                                                                                                                                
He read the zero fiscal note bill analysis, as follows:                                                                         
                                                                                                                                
     The bill  will allow an  individual or entity  who owns                                                                    
     an automated  teller machine (ATM)  to charge a  fee to                                                                    
     conduct  a transaction  accessing  an  account from  an                                                                    
     international financial institution.  The division does                                                                    
     not  currently regulate  ATM fees.  The  bill does  not                                                                    
     require a change to regulations.                                                                                           
                                                                                                                                
        The Division of Banking and Securities does not                                                                         
     anticipate fiscal impact from this legislation.                                                                            
                                                                                                                                
SENATOR BISHOP reiterated that this is a zero fiscal note.                                                                      
                                                                                                                                
5:41:19 PM                                                                                                                    
SENATOR COSTELLO moved to report  HB 44, version 31-LS0223\A from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note.                                                                                                                           
                                                                                                                                
There  being no  objection, HB  44 was  reported from  the Senate                                                               
Labor and Commerce Standing Committee.                                                                                          
                                                                                                                                
5:42:11 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Reinbold  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 5:42 p.m.                                                                                                  

Document Name Date/Time Subjects
HB 44 VER. A.PDF SL&C 5/13/2019 1:30:00 PM
HB 44
HB 44 Sponsor Statement.pdf SL&C 5/13/2019 1:30:00 PM
HB 44
HB 44 Sectional Analysis VER. A.pdf SL&C 5/13/2019 1:30:00 PM
HB 44
HB 44 Fiscal Note DCCED-DBS 3.20.19.pdf SL&C 5/13/2019 1:30:00 PM
HB 44
HB 44 Additional Document-ATM Location Study 3.15.19.pdf SL&C 5/13/2019 1:30:00 PM
HB 44
HB 44 Supporting Document-Support Letter National ATM Council.pdf SL&C 5/13/2019 1:30:00 PM
HB 44
HB 44 Supporting Document-Support Letters.pdf SL&C 5/13/2019 1:30:00 PM
HB 44