Legislature(2009 - 2010)HOUSE FINANCE 519
04/13/2009 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB221 | |
| HB162 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 162 | TELECONFERENCED | |
| += | HB 212 | TELECONFERENCED | |
| + | HB 221 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 13, 2009
8:40 a.m.
8:40:49 AM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 8:40 a.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas, Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Richard Foster
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
None
ALSO PRESENT
Conrad Jackson, Staff, Representative Kurt Olson; Tyson
Fick, Legislative Liaison, Department of Commerce, Community
and Economic Development; Melanie Lesh, Legislative Liaison,
Department of Natural Resources (DNR)
PRESENT VIA TELECONFERENCE
Lorie Hovanec, Director, Divisions of Banking & Securities,
Department of Commerce, Community and Economic Development;
Patrice Walsh, Consumer Finance Chief, Division of Banking &
Securities, Department of Commerce, Community and Economic
Development; Chris Maisch, Director, Division of Forestry,
Department of Natural Resources
SUMMARY
HB 221 "An Act relating to the state's participation in
the federal Nationwide Mortgage Licensing System
and Registry, and to mortgage lending regulation
and licensing; and providing for an effective
date."
CSHB 221 (L&C) was REPORTED out of Committee with
"no recommendation" and with fiscal note #1 by the
Department of Commerce, Community and Economic
Development.
HB 162 "An Act establishing the Southeast State Forest
and relating to the Southeast State Forest; and
providing for an effective date."
HB 162 was REPORTED out of Committee with "no
recommendation" and with zero fiscal note #1 by
the Department of Natural Resources.
HB 212 "An Act modifying the Alaska unemployment
insurance statutes to comply with the requirements
of the federal economic stimulus bill by
redefining the base period for determining
eligibility for unemployment benefits; and
providing for an effective date."
HB 212 was scheduled but not heard.
8:42:10 AM
HOUSE BILL NO. 221
"An Act relating to the state's participation in the
federal Nationwide Mortgage Licensing System and
Registry, and to mortgage lending regulation and
licensing; and providing for an effective date."
CONRAD JACKSON, STAFF, REPRESENTATIVE KURT OLSON, SPONSOR,
introduced HB 221. He reported that the bill is a quick fix
at the request of the Department of Commerce, Community and
Economic Development so that Alaska can participate in the
National Mortgage Licensing System (NMLS).
8:42:49 AM
TYSON FICK, LEGISLATIVE LIAISON, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, related that shortly
after the state passed its own mortgage licensing law, the
federal government passed their own version called the
Secure and Fair Enforcement of Mortgage Licensing Act of
2008 (SAFE). This Act sets a floor level for compliance
made up of database, registry, and national background
check, as well as statutory changes. He explained that the
time sensitive piece of the bill is joining the database.
He drew attention to the fiscal note for $98,000 from
receipt supported services to pay for a $50,000 one-time
fee, $20,000 to update the computer system, and the
remainder for travel for training.
8:44:08 AM
Representative Austerman noticed that the bill was
introduced on April 8. He wondered when the federal act was
passed. Mr. Fick thought it was last July. He related that
HB 221 is part of a larger bill and deals only with the
time-sensitive piece.
Representative Austerman requested the bill number of the
larger bill. Mr. Fick said it was HB 145 and SB 149.
8:45:23 AM
Representative Fairclough asked how much research had been
done regarding the exchange of information when Alaska
provides information to a national database.
LORIE HOVANEC, DIRECTOR, DIVISIONS OF BANKING & SECURITIES,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
testifying via teleconference, requested clarification of
the question.
Representative Fairclough restated the question to ask how
data is shared with the rest of the nation. She was looking
for "strings attached".
Ms. Hovanek explained the purpose of the national data base
is to share information about mortgage professionals and
companies nationally, provide transparency, and streamline
the licensing process.
Representative Fairclough asked if the information would be
shared with other national organizations. Ms. Hovanek
assured that it was a closed, secure system.
8:47:42 AM
Co-Chair Stoltze asked if there were any questions of policy
concern.
Representative Fairclough pointed out a letter of good faith
from the Alaska Association of Mortgage Brokers which noted
that HUD has the authority to grant an extension to the
states. She wondered where the bill was held up.
Representative Olson related that HB 145, a thirty-six page
bill, was in Labor and Commerce. It was felt that the
smaller bill would have an easier time moving through the
system and would show a good faith effort to the federal
government.
Representative Fairclough wondered if there was a back out
clause. Mr. Fick did not know.
8:50:29 AM
Ms. Hovanec stated that there is no choice whether to join
or not. Alaska is scheduled to join the national licensing
system on August 1, which is very close to the July 30
deadline.
Representative Fairclough voiced concerns about the
consequences of not thoroughly understanding the issues
related to mortgage lending. Ms. Hovanec opined that it is
a great system. The intent is to handle all licensing
through the national data base, but the state can still
issue the license. The mortgage companies and professionals
will submit their license information and their fingerprint
cards to the national database. The FBI will do the
background check, and then the information is passed back to
the state. Current state statutes apply until the state
comes into compliance with the SAFE Act. It is a federal
requirement that the applicant submit the license
information to the national database.
8:53:11 AM
Representative Kelly asked what happens if the state does
not join. Ms. Hovanec explained that if the state does not
join, the US Department of Housing and Urban Development
(HUD) will set up its own requirements, which would not be
good for the industry.
8:53:57 AM
Representative Austerman spoke of the issue of dealing with
rogue companies. He wondered what options the state has to
turn a company down.
8:54:29 AM
PATRICE WALSH, CONSUMER FINANCE CHIEF, DIVISION OF BANKING &
SECURITIES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT, testified via teleconference, and explained the
way suitability for licensing is determined. She related
that the same criteria found in current mortgage statutes
would be used to screen applicants. If an applicant has had
a banking-related felony the license is denied. The
national database will provide information about problems an
applicant may have had in another state.
Representative Fairclough noted that Representative Olson
agrees with the bill.
8:56:24 AM
Representative Fairclough MOVED to report CSHB 221 (L&C) out
of Committee with individual recommendations and the
accompanying fiscal note.
Representative Austerman OBJECTED to comment. He spoke
against the idea of "nationalization one step at a time".
Representative Austerman WITHDREW his objection.
There being NO OBJECTION, it was so ordered.
CSHB 221 (L&C) was REPORTED out of Committee with "no
recommendation" and with fiscal note #1 by the Department of
Commerce, Community and Economic Development.
AT-EASE: 8:57:53 AM
RECONVENED: 8:59:27 AM
HOUSE BILL NO. 162
"An Act establishing the Southeast State Forest and
relating to the Southeast State Forest; and providing
for an effective date."
MELANIE LESH, LEGISLATIVE LIAISON, DEPARTMENT OF NATURAL
RESOURCES (DNR), introduced HB 162, which would establish a
new Southeast State Forest (SESF). The bill is the state's
effort to ensure that timber processing continues to be part
of the economy in Southeast Alaska. She noted a zero fiscal
note by DNR. There was a very thorough hearing of the bill
previously in the House Resources Committee and in the
Senate Community and Regional Affairs Committee.
Ms. Lesh reported that the majority of timber in southern
Southeast is on federal land, but federal timber sales have
been in decline. Local mills now depend heavily on state
timber for survival. Demand for Southeast timber for wood
energy is also increasing, further raising the need for
securing a timber base for this region.
Ms. Lesh explained that the proposed bill consists of 20
parcels that are currently classified as general use state
land. She referred to maps of those parcels contained in
the members' packets. Regarding this proposal, DNR has
briefed many statewide groups. Letters of support are also
included in the packet.
9:01:55 AM
Co-Chair Stoltze inquired about the major harvesting and
processing forestry projects. Ms. Lesh deferred to Mr.
Maisch.
CHRIS MAISCH, DIRECTOR, DIVISION OF FORESTRY, DEPARTMENT OF
NATURAL RESOURCES, testified via teleconference, and
reported that about 50,000 acres of forestry land in
Southeast are currently managed by the state. This proposal
would designate about 25,000 acres as state forest. There
are three midsize or larger mills in Southeast, as well as
numerous small mills.
Mr. Maisch shared that the legislation is part of a multi-
faceted strategy. He related the process used to discuss
the proposal. He explained communities' concerns about
municipal entitlement. The bill will grandfather in any
communities for municipal entitlement selection. He pointed
out that Wrangell was currently going through the selection
process. He noted a zero fiscal note accompanying the bill.
Mr. Maisch emphasized the importance of transferring from
old growth to second growth management in Southeast. He
discussed pre-commercial thinning.
9:07:33 AM
Vice-Chair Thomas asked why all the state land was not
included in the proposed state forest. Mr. Maisch discussed
how the land was assigned to become state forest.
Vice-Chair Thomas pointed out that recently a bill giving up
41,000 acres of state land was passed. He wondered why
university lands were not included. Mr. Maisch thought it
was due to a recent Supreme Court ruling and lack of time.
He suggested that lands could be added in the future.
Vice-Chair Thomas asked what the sustained yield would be.
Mr. Maisch thought there would be 13 million board feet per
year.
Mr. Maisch added that all 50,000 acres would be managed,
including the 25,000 not within the state forest.
9:10:17 AM
Vice-Chair Thomas pointed out that a lot of land was left
out. He suggested that all lands should be included now, in
order to prevent future battles.
Representative Kelly asked if the land is still open to
mining once it goes into the state forest category. Mr.
Maisch said it was.
Representative Kelly asked what would happen if this bill
does not pass. Mr. Maisch explained that the bill allows
for the start of commercial thinning. A percentage of
timber receipts are prioritized for reforestation work. It
would allow DNR to be able to harvest the trees in the
future.
Representative Kelly asked what happens if the state wants
to do a remote cabin release. He wondered if the bill would
prevent that. Mr. Maisch believed it would. It would take
legislative change. He pointed out that many other lands
are set aside for that purpose. Representative Kelly
commented on problems with access to those areas.
9:15:26 AM
Co-Chair Stoltze echoed those sentiments.
Representative Gara asked about a parcel near Thorne Bay.
He wondered if it was in the Thorne River drainage. Mr.
Maisch said it does not appear to be. Representative Gara
pointed out that the Thorne River is a Steelhead and Salmon
drainage. He wondered if the 70-foot clear-cut buffer was
in place. Mr. Maisch reported that all regulations would
apply.
9:17:43 AM
Representative Gara asked about rules that say other options
have to be looked at before cutting the old growth. Mr.
Maisch reported on regulations relating to managing old
growth. The Alaska Department of Fish and Game looked at
water quality issues and supports this legislation.
Representative Gara asked about replanting requirements.
Mr. Maisch shared the restoration regulations. He commented
that in Southeast, forests reforest well on their own.
Representative Gara voiced concern about care needed in
dealing with drainage.
Co-Chair Stoltze noted who was in support of the bill. Mr.
Maisch listed others who have endorsed the bill.
9:21:00 AM
Co-Chair Stoltze noted a zero fiscal note by the Department
of Natural Resources. He requested assurance that more
money would not be requested in the future. Mr. Maisch
reviewed the funding sources, which require no additional
funding.
9:21:53 AM
Vice-Chair Thomas MOVED to report HB 162 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
HB 162 was REPORTED out of Committee with "no
recommendation" and with zero fiscal note #1 by the
Department of Natural Resources.
HB 212 was scheduled but not heard.
ADJOURNMENT
The meeting was adjourned at 9:22 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 02 HB221 Sponsor Statement.pdf |
HFIN 4/13/2009 8:30:00 AM |
HB 221 |
| 04 HB221 NMLS overview.pdf |
HFIN 4/13/2009 8:30:00 AM |
HB 221 |
| 04 HB221 NMLS overview.pdf |
HFIN 4/13/2009 8:30:00 AM |
HB 221 |
| 06 HB221 Letter of support-opposition_ JMartin 4-10-09.pdf |
HFIN 4/13/2009 8:30:00 AM |
HB 221 |
| Referral Summary.doc |
HFIN 4/13/2009 8:30:00 AM |
HB 221 |
| HB 162 DOF Background Paper.pdf |
HFIN 4/13/2009 8:30:00 AM |
HB 162 |
| HB 162 Sectional Analysis.pdf |
HFIN 4/13/2009 8:30:00 AM |
HB 162 |
| Maps DOF SE Multi per pg.pdf |
HFIN 4/13/2009 8:30:00 AM |
HB 162 |
| DNR Letters.pdf |
HFIN 4/13/2009 8:30:00 AM |
HB 162 |