04/05/2022 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 85(L&C)                                                                                                 
                                                                                                                                
     "An Act  relating to the Alaska  Banking Code; relating                                                                    
     to mutual  savings banks; relating to  interstate state                                                                    
     banks   and  international   banks;  relating   to  the                                                                    
     pledging  of  bank  assets as  collateral  security  to                                                                    
     tribal organizations; relating to  the pledging of bank                                                                    
     assets for interest swap  agreements; relating to state                                                                    
     business licenses;  relating to persons who  make loans                                                                    
     secured   by  interests   in  vessels   or  facilities;                                                                    
     relating  to liability  for the  release or  threatened                                                                    
     release of hazardous substances;  relating to the Model                                                                    
     Foreign Bank  Loan Act; and providing  for an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
9:19:56 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  shared that it  was the second  hearing for                                                                    
HB  85.  The  committee  had previously  opened  and  closed                                                                    
public  testimony   and  intended  to  hear   a  quick  bill                                                                    
reintroduction and look to the will of the committee.                                                                           
                                                                                                                                
9:20:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BART  LEBON, SPONSOR,  spoke to the  bill. He                                                                    
explained that  the bill proposed to  update several aspects                                                                    
of  Alaskas  outdated  banking statutes  found in  Title VI.                                                                    
The  bill  would  broadly bring  regulatory  parity  between                                                                    
national charter banks and state  charter banks and increase                                                                    
regulatory  efficiency.  The bill  had  the  support of  the                                                                    
Alaska   Bankers   Association   and   was   introduced   in                                                                    
collaboration with  the Division of Banking  and Securities.                                                                    
He referenced  a memo  to the  co-chairs dated  February 16,                                                                    
2022, in response the committees   questions (copy on file).                                                                    
He  noted  that  there  was   invited  testimony  and  staff                                                                    
available to answer questions.                                                                                                  
                                                                                                                                
Co-Chair Bishop  addressed a  zero fiscal  note (FN  5) from                                                                    
the Department of  Environmental Conservation, OMB Component                                                                    
3094. He read from the summary on page 2:                                                                                       
                                                                                                                                
     It is  unclear how many current  or future contaminated                                                                    
     sites  may  have  no  other party  able  to  cover  the                                                                    
     department's   costs   of  overseeing   or   conducting                                                                    
     response or remediation.                                                                                                   
                                                                                                                                
Co-Chair Bishop spoke to a zero  fiscal note (FN 6) from the                                                                    
Department of Commerce,  Community and Economic Development,                                                                    
OMB Component 2808. He read from the fiscal note analysis:                                                                      
                                                                                                                                
     HB  85 adjusts  statutory  requirements  for state  and                                                                    
     mutual savings  banks to modernize the  state's banking                                                                    
     laws.                                                                                                                      
                                                                                                                                
     Changes to  regulations will be  required, but  will be                                                                    
     combined with planned regulations projects.                                                                                
                                                                                                                                
Co-Chair Bishop  addressed a  zero fiscal  note (FN  7) from                                                                    
Department of Commerce,  Community and Economic Development,                                                                    
OMB Component 2360. The note  indicated that the Division of                                                                    
Corporations,  Business  and Professional  Licensing  (CBPL)                                                                    
did not expect fiscal impact from the legislation.                                                                              
                                                                                                                                
Co-Chair Stedman  MOVED to  report SCS  CSHB 85(L&C)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SCS CSHB  85(L&C) was  REPORTED out  of committee  with four                                                                    
"do    pass"   recommendations    and    with   three    "no                                                                    
recommendation" recommendations,  and with  three previously                                                                    
published zero  fiscal notes: FN  5(DEC), FN 6(CED),  and FN                                                                    
7(CED).                                                                                                                         
                                                                                                                                
9:23:46 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:24:59 AM                                                                                                                    
RECONVENED