04/26/2019 09:00 AM House FINANCE

HOUSE BILL NO. 32                                                                                                             
                                                                                                                                
     "An Act  making certain  entities that are  exempt from                                                                    
     federal taxation  under 26 U.S.C. 501(c)(3),  (4), (6),                                                                    
     (12),  or   (19)  (Internal  Revenue   Code),  regional                                                                    
     housing  authorities, and  federally recognized  tribes                                                                    
     eligible for  a loan from the  Alaska energy efficiency                                                                    
     revolving loan fund; relating to  loans from the Alaska                                                                    
     energy efficiency revolving loan fund; and relating to                                                                     
     the annual report published by the Alaska Housing                                                                          
     Finance Corporation."                                                                                                      
                                                                                                                                
9:06:17 AM                                                                                                                    
                                                                                                                                
Co-Chair   Wilson  reported   that   public  testimony   had                                                                    
previously  been  closed  and   the  fiscal  note  had  been                                                                    
reviewed.                                                                                                                       
                                                                                                                                
Representative   LeBon  noted   that  the   Alaska  Banker's                                                                    
Association had  issued an opinion  stating it  believed the                                                                    
bill  competed  with  the private  sector.  The  association                                                                    
believed its members (nine banks  operating in Alaska) could                                                                    
fill the need if asked.                                                                                                         
                                                                                                                                
Co-Chair Wilson asked if the  sponsor had reached out to the                                                                    
Alaska Banker's Association.                                                                                                    
                                                                                                                                
JOHN SCANLON, STAFF,  REPRESENTATIVE JONATHAN KREISS-TOMKINS                                                                    
replied that the  sponsor had repeatedly reached  out to the                                                                    
Alaska Banker's Association.                                                                                                    
                                                                                                                                
Co-Chair  Wilson  asked  if the  sponsor  had  received  any                                                                    
comments from the association.                                                                                                  
                                                                                                                                
Mr.  Scanlon replied  that the  sponsor had  been unable  to                                                                    
schedule  a  call  with  the  association  despite  multiple                                                                    
attempts.                                                                                                                       
                                                                                                                                
Co-Chair Wilson  remarked that the committee  could hold the                                                                    
bill  to hear  from the  association  at a  later time.  She                                                                    
asked Representative LeBon for his preference.                                                                                  
                                                                                                                                
Representative LeBon replied  that the association's opinion                                                                    
was  probably  not enough  to  hold  the bill.  His  earlier                                                                    
comment was based on a  written opinion from the association                                                                    
stating  that the  private  sector could  and  had made  the                                                                    
loans. He shared that he had  made the loans in the past. He                                                                    
stated,  "however designed,  it's not  a burning  necessity,                                                                    
maybe  it's more  luxury, but  the private  sector can  make                                                                    
these types of loans."                                                                                                          
                                                                                                                                
Co-Chair Wilson appreciated the  remarks and believed it was                                                                    
likely validated as the state  was still looking for someone                                                                    
that  wanted the  specific  kinds of  loans.  She asked  the                                                                    
sponsor to reach  out to the banking  association to receive                                                                    
an answer on  its comfort level before the  bill reached the                                                                    
House floor.                                                                                                                    
                                                                                                                                
9:08:51 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz  asked  if  a  denial  letter  had  to  be                                                                    
obtained  from a  commercial bank  before one  of the  loans                                                                    
could be made.                                                                                                                  
                                                                                                                                
Mr.  Scanlon deferred  the question  to  the Alaska  Housing                                                                    
Finance Corporation.                                                                                                            
                                                                                                                                
Co-Chair  Wilson  replied  that  a  denial  letter  was  not                                                                    
required.  She  elaborated  that   on  some  commercial  and                                                                    
agriculture  loans a  denial letter  was required;  however,                                                                    
that was not the case with  the loans addressed by the bill.                                                                    
She reminded the  committee that it had  heard from numerous                                                                    
boroughs that they  had done energy efficiency  work and had                                                                    
found  cheaper   loans  through  the  private   market.  She                                                                    
suggested  that if  the idea  [in the  legislation] did  not                                                                    
work  and  they found  the  same  thing was  happening  with                                                                    
nonprofits,  perhaps  it would  be  time  to shut  down  the                                                                    
specific  loan. She  hoped to  have the  answers prior  to a                                                                    
floor vote.                                                                                                                     
                                                                                                                                
Vice-Chair Johnston MOVED  to REPORT HB 32  out of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
Representative Carpenter OBJECTED.                                                                                              
                                                                                                                                
A roll call  vote was taken on the motion.  [Note: the first                                                                    
and second roll  calls were VOIDED. See 9:14  a.m. for final                                                                    
roll call.]                                                                                                                     
                                                                                                                                
9:12:04 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:14:45 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Wilson clarified  Vice-Chair Johnston would restate                                                                    
the motion.                                                                                                                     
                                                                                                                                
Vice-Chair Johnston MOVED  to REPORT HB 32  out of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
Representative Carpenter OBJECTED.                                                                                              
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Josephson, Johnston, Merrick, Ortiz, Wilson,                                                                          
Foster                                                                                                                          
OPPOSED: Knopp, LeBon, Sullivan-Leonard, Tilton, Carpenter                                                                      
                                                                                                                                
The MOTION PASSED (6/5).                                                                                                        
                                                                                                                                
There being NO further OBJECTION,  HB 32 was REPORTED out of                                                                    
committee  with three  "do pass"  recommendations, four  "do                                                                    
not   pass"   recommendations,  four   "no   recommendation"                                                                    
recommendations,  and  with  one previously  published  zero                                                                    
note: FN1 (REV).                                                                                                                
                                                                                                                                
9:16:22 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:17:14 AM                                                                                                                    
RECONVENED