Legislature(2011 - 2012)BELTZ 105 (TSBldg)
04/14/2011 02:00 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB164 | |
| SB74 | |
| SB119 | |
| HB188 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 74 | TELECONFERENCED | |
| + | SB 119 | TELECONFERENCED | |
| += | HB 164 | TELECONFERENCED | |
| += | HB 188 | TELECONFERENCED | |
HB 188-INTEREST RATES
3:30:47 PM
CHAIR EGAN announced HB 188, sponsored by the House Labor and
Commerce Committee, to be up for consideration.
KONRAD JACKSON, staff to Representative Olson, chair of the
House Labor and Commerce Committee, explained that HB 188
addresses maximum interest allowed on private loans of $25,000
or less. AS 45.45.010 (b) sets the rate on these loans at 5
percent above the rate charged to banks by the 12th Federal
Reserve District. Currently that rate is .75 percent. When the
statute was written, people were not imagining that rates would
be as low as they are now. HB 188 would allow an individual
offering a loan of $25,000 or less to charge an interest rate
the greater of either 10 percent above the interest rate from
the Federal Reserve District or 10 percent. So, today the
maximum rate would be 10 percent.
The hope is that this bill will encourage more commerce and
allow individuals to finance small loans for real property and
basically carry the note and get a little bit of return as
opposed to 5.75 percent. This law is a default; so if it
conflicts with other statutes, those statutes take precedence.
3:33:03 PM
He said some questions were raised earlier and they have been
addressed and since then this bill had had no opposition. The
questions that have been asked are about whether this bill
applies to credit card interest rates, pay day loans or credit
unions and it doesn't; those are all covered under Title 6.
GLENDA SEEKEN, Alaska Association of Realtors, supported HB 188.
She said it would help realtors to be able to sell more land.
SENATOR PASKVAN moved to report HB 188 from committee with
individual recommendations and attached zero fiscal note. There
were no objections and it was so ordered.
3:35:08 PM
At ease from 3:35 PM to 3:36 PM.
3:37:25 PM
CHAIR EGAN thanked members of the committee and staff for their
hard work this year and adjourned the meeting at 3:37 PM.
| Document Name | Date/Time | Subjects |
|---|