Legislature(2001 - 2002)

05/13/2002 08:37 PM RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                    
                     SENATE RULES COMMITTEE                                                                                   
                          May 13, 2002                                                                                          
                            8:37 p.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Randy Phillips, Chair                                                                                                   
Senator John Cowdery, Vice Chair                                                                                                
Senator Rick Halford                                                                                                            
Senator Gene Therriault                                                                                                         
Senator Johnny Ellis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All Members Present                                                                                                             
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
2d CS FOR HOUSE BILL NO. 303(RLS)                                                                                               
"An Act relating  to taxation of individual income;  and providing                                                              
for an effective date."                                                                                                         
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 27(FIN)                                                                                                   
"An Act  relating to the  registration of individuals  who perform                                                              
home inspections; relating to regulation  of contractors; relating                                                              
to registration  fees for specialty contractors,  home inspectors,                                                              
and  associate  home  inspectors;   relating  to  home  inspection                                                              
requirements for  residential loans  purchased or approved  by the                                                              
Alaska Housing  Finance Corporation; relating to  civil actions by                                                              
and  against home  inspectors and  to civil  actions arising  from                                                              
residential  unit  inspections;  and providing  for  an  effective                                                              
date."                                                                                                                          
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
HOUSE BILL NO. 131                                                                                                              
"An Act relating to standards for  forest resources and practices;                                                              
and providing for an effective date."                                                                                           
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 135(JUD) am                                                                                               
"An Act relating  to municipal fees for certain  police protection                                                              
services  and  to  a  tenant's  activities   that  result  in  the                                                              
imposition of those fees."                                                                                                      
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 152(RLS)                                                                                                  
"An  Act  relating  to brewpub  licenses;  and  providing  for  an                                                              
effective date."                                                                                                                
     SCHEDULED BUT NOT HEARD                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 182(FIN) am                                                                                               
"An Act  relating to certain  vehicles, including  motorcycles and                                                              
trailers;  relating  to  the  registration,   bonding,  and  other                                                              
regulation of motor vehicle dealers;  relating to the registration                                                              
and  other regulation  of certain  motor  vehicle buyers'  agents;                                                              
relating to  acts and transactions  involving vehicles,  including                                                              
trailers, and  to the  acts and practices  of certain  persons and                                                              
entities  involved  in  vehicle  transactions,  including  trailer                                                              
transactions;  relating to  consumer protection  for used  vehicle                                                              
buyers;  amending Rule  3, Alaska  Rules of  Civil Procedure;  and                                                              
providing for an effective date."                                                                                               
     SCHEDULED BUT NOT HEARD                                                                                                    
                                                                                                                                
HOUSE BILL NO. 239                                                                                                              
"An  Act establishing  a  pilot program  for  a regional  learning                                                              
center."                                                                                                                        
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 252(RLS)                                                                                                  
"An Act relating to the construction  of certain statutes relating                                                              
to children;  relating to the scope  of duty and standard  of care                                                              
for  persons  who   provide  services  to  certain   children  and                                                              
families;  relating  to civil  liability  for damages  to  certain                                                              
children and their families resulting  from failure to comply with                                                              
certain  statutes;  relating  to   intensive  family  preservation                                                              
services; and providing for an effective date."                                                                                 
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
HOUSE BILL NO. 300                                                                                                              
"An Act relating to the procurement of certain travel services."                                                                
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 317(FIN)                                                                                                  
"An Act relating to stalking and  to violating a protective order;                                                              
and amending Rules 4 and 65, Alaska  Rules of Civil Procedure, and                                                              
Rule 9, Alaska Rules of Administration."                                                                                        
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 382(FIN)                                                                                                  
"An Act  relating to  the evaluation  and cleanup  of sites  where                                                              
certain  controlled  substances  may  have  been  manufactured  or                                                              
stored; and providing for an effective date."                                                                                   
     APPROVED FOR CALENDARING                                                                                                   
CS FOR HOUSE BILL NO. 489(JUD)                                                                                                  
"An Act relating to cruelty to animals."                                                                                        
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
HOUSE BILL NO. 510                                                                                                              
"An Act  relating to the  regulation of commercial  motor vehicles                                                              
to avoid  loss or  withholding of  federal highway  money,  and to                                                              
out-of-service  orders   concerning  commercial   motor  vehicles;                                                              
amending Rule 43.1, Alaska Rules  of Administration; and providing                                                              
for an effective date."                                                                                                         
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 35 am                                                                                                
Relating to  urging the  United States Congress  to amend  the tax                                                              
code to permanently repeal the estate tax.                                                                                      
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 51(FIN)                                                                                                   
"An Act  giving notice  of and  approving the  entry into  and the                                                              
issuance  of certificates  of participation  for a  lease-purchase                                                              
agreement  for  a seafood  and  food safety  laboratory  facility;                                                              
relating  to the  use  of certain  investment  income for  certain                                                              
construction costs; and providing for an effective date."                                                                       
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 393(JUD) am                                                                                               
"An Act  relating to unfair and  deceptive trade practices  and to                                                              
the  sale of  business  opportunities; amending  Rules  4 and  73,                                                              
Alaska Rules  of Civil Procedure;  and providing for  an effective                                                              
date."                                                                                                                          
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 330(FIN) am                                                                                               
"An  Act relating  to providing  alcoholic beverages  to a  person                                                              
under 21 years of age."                                                                                                         
     ADOPTED A SENATE RULES COMMITTEE SUBSTITUTE AND APPROVED FOR                                                               
     CALENDARING                                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 471(CRA)                                                                                                  
"An Act increasing the maximum amount  of loans from the bulk fuel                                                              
revolving  loan  fund operated  by  the Alaska  Energy  Authority;                                                              
relating to the definitions of 'net  income' and 'unrestricted net                                                              
income'  for purposes  of  determining the  amount  of the  Alaska                                                              
Industrial  Development  and Export  Authority's  dividend to  the                                                              
state;  relating to  communities  within which  rural  development                                                              
loans may be made by the Alaska Industrial  Development and Export                                                              
Authority; and providing for an effective date."                                                                                
     APPROVED FOR CALENDARING                                                                                                   
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                              
                                                                                                                                
HB 303 - See State Affairs minutes dated 5/9/02 and Finance                                                                     
minutes dated 5/12/02.                                                                                                          
                                                                                                                                
HB 27 -  See Labor and  Commerce minutes dated  4/30/02, Judiciary                                                              
minutes dated 5/10/02 and Finance minutes dated 5/12/02                                                                         
                                                                                                                                
HB  131 -  See  Resources minutes  dated  3/20/01  and 4/8/02  and                                                              
Finance minutes dated 5/12/02.                                                                                                  
                                                                                                                                
HB  135 -  See CRA  minutes dated  3/27/02  and Judiciary  minutes                                                              
dated 5/11/02.                                                                                                                  
                                                                                                                                
HB 239 - See HESS minutes dated 4/17/02.                                                                                        
                                                                                                                                
HB 252 - See  Judiciary minutes dated 5/10/02  and Finance minutes                                                              
dated 5/12/02.                                                                                                                  
                                                                                                                                
HB 317 - See  Judiciary minutes dated 5/10/02  and Finance minutes                                                              
5/12/02.                                                                                                                        
                                                                                                                                
HB  382 -  See  Resources minutes  dated  4/29/02  and 5/6/02  and                                                              
Finance minutes dated 5/11/02.                                                                                                  
                                                                                                                                
HB 489 - See  Judiciary minutes dated 5/10/02  and Finance minutes                                                              
dated 5/12/02.                                                                                                                  
                                                                                                                                
HB 510 - See Transportation minutes dated 5/11/02.                                                                              
                                                                                                                                
HJR  35  - See  State  Affairs  minutes  dated 3/21/02  and  Rules                                                              
minutes dated 4/11/02.                                                                                                          
                                                                                                                                
HB 51 -  See HESS minutes  dated 5/5/01 and Finance  minutes dated                                                              
5/13/02.                                                                                                                        
                                                                                                                                
HB  393  -  See Labor  and  Commerce  minutes  dated  4/30/02  and                                                              
5/4/02, Judiciary minutes dated 5/10/02  and Finance minutes dated                                                              
5/11/02.                                                                                                                        
                                                                                                                                
HB 330 - See Judiciary minutes dated 5/6/02.                                                                                    
                                                                                                                                
HB 471 -  See CRA minutes  dated 5/3/02 and Finance  minutes dated                                                              
5/10/02.                                                                                                                        
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Representative Gary Stevens                                                                                                     
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT:  Sponsor of HB 393                                                                                        
                                                                                                                                
Representative Joe Green                                                                                                        
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT:  Sponsor of HB 471                                                                                        
                                                                                                                                
Mr. Bob Poe                                                                                                                     
Alaska Industrial Development and                                                                                               
 Export Authority and Alaska Energy                                                                                             
  Authority                                                                                                                     
813 W Northern Lights Blvd.                                                                                                     
Anchorage, AK  99503                                                                                                            
POSITION STATEMENT:  Answered questions about HB 471.                                                                         
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 02-15, SIDE A                                                                                                            
Number 001                                                                                                                      
                                                                                                                                
                                                                                                                                
CHAIRMAN RANDY PHILLIPS called the  Senate Rules Committee meeting                                                            
to  order  at  8:37  p.m.  Senators  Halford,  Ellis,  Therriault,                                                              
Cowdery and Phillips were present.  The first order of business to                                                              
come before the committee was HB 303.                                                                                           
                                                                                                                                
SENATOR  HALFORD moved  to  calendar 2d  CSHB  303(RLS)-INDIVIDUAL                                                          
INCOME TAX at the Chairman's discretion.                                                                                    
                                                                                                                                
SENATOR ELLIS objected.                                                                                                         
                                                                                                                                
CHAIRMAN PHILLIPS announced that  the motion carried with Senators                                                              
Therriault,  Halford, Cowdery  and Phillips  in favor and  Senator                                                              
Ellis opposed.                                                                                                                  
                                                                                                                                
SENATOR   HALFORD    moved   to    calendar   CSHB    27(FIN)-HOME                                                          
INSPECTORS/CONTRACTORS at the Chairman's discretion.                                                                        
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
CHAIRMAN PHILLIPS  announced that HB  51 was placed at  the bottom                                                              
of the calendar.                                                                                                                
                                                                                                                                
SENATOR  HALFORD  moved  to calendar  HB  131-FOREST  RESOURCES  &                                                          
PRACTICES STANDARDS at the Chairman's discretion.                                                                           
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
SENATOR  HALFORD  moved  to  calendar   CSHB  135(JUD)am-EXCESSIVE                                                          
POLICE SERVICES:FEES/ TENANCY at the Chairman's discretion.                                                                 
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
CHAIRMAN PHILLIPS noted that HB 152  would be placed at the bottom                                                              
of the calendar.                                                                                                                
                                                                                                                                
SENATOR  HALFORD moved  to  calendar HB  239-VOCATIONAL  EDUCATION                                                          
PILOT PROGRAM at the Chairman's discretion.                                                                                 
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
SENATOR HALFORD  moved to calendar CSHB 252(RLS)-CHILDREN  IN NEED                                                          
OF AID: SERVICES & LIAB. at the Chairman's discretion.                                                                      
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
SENATOR  HALFORD moved  to calendar HB  300-PROCUREMENT OF  TRAVEL                                                          
SERVICES at the Chairman's discretion.                                                                                      
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
SENATOR  HALFORD  moved  to  calendar   CSHB  317(FIN)-STALKING  &                                                          
PROTECTIVE ORDERS at the Chairman's discretion.                                                                             
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
CHAIRMAN PHILLIPS  announced that  HB 330 would  be placed  at the                                                              
bottom of the calendar.                                                                                                         
                                                                                                                                
SENATOR  HALFORD  moved  to  calendar   CSHB  382(FIN)-CLEANUP  OF                                                          
ILLEGAL DRUG SITES at the Chairman's discretion.                                                                            
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that  HB  393 and  HB  471 would  be                                                              
placed at the bottom of the calendar.                                                                                           
                                                                                                                                
SENATOR  HALFORD  moved  to  calendar   CSHB  489(JUD)-CRUELTY  TO                                                          
ANIMALS at the Chairman's discretion.                                                                                       
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
SENATOR  COWDERY   moved  to  calendar  HB   510-COMMERCIAL  MOTOR                                                          
VEHICLES:REGULATIONS at the Chairman's discretion.                                                                          
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
SENATOR HALFORD moved  to calendar HJR 35am -REPEAL  ESTATE TAX at                                                          
the Chairman's discretion.                                                                                                      
                                                                                                                                
SENATOR ELLIS noted  that HJR 35am was referred  back to committee                                                              
when it was scheduled  on the Senate floor because  Senator Donley                                                              
had a concern. He asked if that concern has been addressed.                                                                     
                                                                                                                                
MR. PHELAN STRAUBE, Senate Rules  Committee aide, informed Senator                                                              
Ellis  that  HJR  35am  was not  amended  by  the  Senate  Finance                                                              
Committee  so the same  House version  will be  calendared  on the                                                              
floor.                                                                                                                          
                                                                                                                                
SENATOR ELLIS objected to calendaring HJR 35am.                                                                                 
                                                                                                                                
CHAIRMAN PHILLIPS announced that  the motion carried with Senators                                                              
Therriault, Halford,  Cowdery and  Phillips in favor,  and Senator                                                              
Ellis opposed.                                                                                                                  
                                                                                                                                
CHAIRMAN PHILLIPS  informed members that  HB 51 has a  fiscal note                                                              
and that the committee  does not yet have possession  of HB 182 so                                                              
those two bills will be heard later.                                                                                            
                                                                                                                                
SENATOR  HALFORD  moved  to  calendar   CSHB  330(FIN)am-PROVIDING                                                          
ALCOHOL TO MINORS/ BREWPUB LIC. at the Chairman's discretion.                                                               
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
CHAIRMAN PHILLIPS  informed members that  he would not take  up HB
393 or  HB 471  at this  meeting and  that HB  152 would be  heard                                                              
later.                                                                                                                          
                                                                                                                                
SENATOR ELLIS asked the Chairman's intention regarding HB 152.                                                                  
                                                                                                                                
CHAIRMAN PHILLIPS said  he planned to recess the  meeting and meet                                                              
again later.                                                                                                                    
                                                                                                                                
SENATOR  ELLIS moved to  calendar CSHB  51(FIN)-LEGIS APPROVAL  OF                                                          
SEAFOOD/FOOD SAFETY  LAB and its accompanying fiscal  notes at the                                                          
Chairman's discretion.                                                                                                          
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
The   committee  took   up  CSHB   393(JUD)am-SALES  OF   BUSINESS                                                          
OPPORTUNITIES.                                                                                                              
                                                                                                                                
REPRESENTATIVE  GARY STEVENS,  sponsor of  HB 393, explained  that                                                              
the measure  is considered to be  a consumer protection  bill from                                                              
"biz-ops"  or   business  opportunities  that   impact  vulnerable                                                              
Alaskans.  Biz-ops come  in  the form  of  infomercials and  other                                                              
advertisements. Some  are legitimate while others are  not. HB 393                                                              
will have  no impact on the  legitimate businesses. The  bill will                                                              
require these businesses to register  with the state, establish an                                                              
escrow account, and  provide a 30-day cancellation  period for the                                                              
buyer.                                                                                                                          
                                                                                                                                
SENATOR COWDERY  recounted a newspaper  story about a  credit card                                                              
scam  and asked  if this  bill would  offer protection  in such  a                                                              
situation.                                                                                                                      
                                                                                                                                
REPRESENTATIVE STEVENS said he was not aware of that story.                                                                     
                                                                                                                                
SENATOR  HALFORD   moved  to  calendar  CSHB  393(JUD)am   at  the                                                              
Chairman's discretion.                                                                                                          
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
SENATOR  HALFORD  moved  to  bring  up  CSHB  330(FIN)am-PROVIDING                                                          
ALCOHOL TO MINORS/ BREWPUB LIC. again.                                                                                      
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
SENATOR  HALFORD said  he  had a  piece  of legislation  that  the                                                              
Senate Judiciary Committee worked  out with representatives of the                                                              
brewpub industry. He believes the  agreement had strong support in                                                              
the committee.  Adopting that  legislation as  an amendment  to HB
330  will  require  a conceptual  title  amendment.  He  moved  to                                                              
incorporate that amendment  into HB 330 thereby  adopting a Senate                                                              
Rules  Committee substitute  and the  appropriate title  amendment                                                              
and resolution.                                                                                                                 
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
SENATOR HALFORD then moved to calendar SCS HB 330(RLS).                                                                         
                                                                                                                                
CHAIRMAN  PHILLIPS  announced  that   without  objection,  SCS  HB
330(RLS) would be calendared.                                                                                                   
                                                                                                                                
CHAIRMAN PHILLIPS  announced the committee would recess  to a call                                                              
of the  chair at  8:55 p.m.  He then  called the  meeting back  to                                                              
order at  8:56 p.m. and  announced that CSHB 471(CRA)-AIDEA  LOANS                                                          
AND DIVIDEND/AEA LOANS was before the committee.                                                                            
                                                                                                                                
REPRESENTATIVE   JOE  GREEN,   sponsor  of   HB  471,  said   this                                                              
legislation  addresses a  concern of  the Governmental  Accounting                                                              
Standards  Board  (GASB). GASB  has  changed  the way  the  Alaska                                                              
Industrial  Development and  Export  Authority (AIDEA)  calculates                                                              
net income. Alaska's current statute  uses the common practice for                                                              
determining net income  to determine how much can  be deposited in                                                              
the  general  fund.  Unless  Alaska's  accounting  procedures  are                                                              
altered  to follow  the  GASB rules,  AIDEA  will not  be able  to                                                              
calculate its  net income and allow  money to be deposited  in the                                                              
general  fund. The  issues surround  AIDEA's  rules for  financing                                                              
loans to small communities that cannot  secure financing in common                                                              
ways and on the amount of money that is loaned for bulk fuel.                                                                   
                                                                                                                                
SENATOR  HALFORD asked  if Section  4 will  exclude any  community                                                              
connected by  road or rail to  Anchorage or Fairbanks  from having                                                              
access to the fund.                                                                                                             
                                                                                                                                
REPRESENTATIVE  GREEN   clarified  that  if  a   community  has  a                                                              
population  of 5,000 or  less and  is not connected  to a  road or                                                              
rail  system,  or  has  a  population  of 2,000  or  less  and  is                                                              
connected by  a road or rail  to Anchorage or Fairbanks,  there is                                                              
no change.                                                                                                                      
                                                                                                                                
SENATOR HALFORD  asked if the previous  rule was that  a community                                                              
could be connected  by road or rail and have a  population of less                                                              
than 5,000 but now the population must be less than 2,000.                                                                      
                                                                                                                                
MR. BOB POE, Executive Director of  AIDEA, explained the intent of                                                              
that change is to "dial in" the Rural  Development Initiative Fund                                                              
(RDIF) to  those communities that  cannot get participation  loans                                                              
through AIDEA. This is an attempt  to segment out the RDIF program                                                              
for communities that cannot get alternative financing.                                                                          
                                                                                                                                
SENATOR  HALFORD  asked  if  Houston would  qualify  for  the  new                                                              
program.                                                                                                                        
                                                                                                                                
MR. POE said that  Houston is on the road system  and could easily                                                              
get loan financing because it has banks nearby.                                                                                 
                                                                                                                                
SENATOR  HALFORD asked  how  a community  of  10,000 in  Southeast                                                              
Alaska would be classified.                                                                                                     
                                                                                                                                
MR. POE  said it  would have  to have  a population  of less  than                                                              
5,000 as the Marine Highway System does not qualify as a road.                                                                  
                                                                                                                                
SENATOR HALFORD  noted that some  of those communities  have banks                                                              
and that he is not sure that definition is equitable.                                                                           
                                                                                                                                
MR. POE  indicated the  definition  has been a  challenge but  the                                                              
intent is  to make the program  work as originally  intended, that                                                              
being to  target lodges  and other kinds  of truly rural  business                                                              
enterprises  that might  find it  hard to  get any  other kind  of                                                              
financing.                                                                                                                      
                                                                                                                                
SENATOR HALFORD asked about the interest rate.                                                                                  
                                                                                                                                
MR. POE  said the  loan rate is  between 7  and 9.5 percent  right                                                              
now. The RDIF loans are in the 7 percent range.                                                                                 
                                                                                                                                
SENATOR HALFORD  asked if  the interest rate  exceeds the  cost of                                                              
funds.                                                                                                                          
                                                                                                                                
MR. POE said it does.                                                                                                           
                                                                                                                                
SENATOR  HALFORD   moved  to  calendar   CSHB  471(CRA)   and  its                                                              
accompanying fiscal notes at the Chairman's discretion.                                                                         
                                                                                                                                
CHAIRMAN  PHILLIPS announced  that without  objection, the  motion                                                              
carried.                                                                                                                        
                                                                                                                                
There  being no  further business  to come  before the  committee,                                                              
CHAIRMAN PHILLIPS recessed the meeting at 9:04 p.m.                                                                             

Document Name Date/Time Subjects