Legislature(2017 - 2018)BARNES 124
04/15/2018 10:00 AM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB357 | |
| HB193 | |
| HB376 | |
| HB357 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 357 | TELECONFERENCED | |
| += | HB 193 | TELECONFERENCED | |
| += | HB 376 | TELECONFERENCED | |
HB 376-ESTABLISH THE ALASKA STATE BANK
4:26:37 PM
CHAIR KITO announced that the next order of business would be
HOUSE BILL NO. 376, "An Act establishing a state bank; relating
to insurance, mortgage lending, securities, and permanent fund
dividends; and providing for an effective date."
4:26:58 PM
REPRESENTATIVE CHRIS TUCK, Alaska State Legislature,
reintroduced HB 376 as prime sponsor. He said the proposed bill
would create a monetary policy for Alaska for infrastructure,
science, and technology projects.
4:28:21 PM
CHARLES DUNCAN, Staff, Representative Chris Tuck, Alaska State
Legislature, presented HB 376 on behalf of Representative Tuck,
prime sponsor. He said that as a researcher, he believes the
most important reason to create the Alaska State Bank is to
allow the legal ability to access the Federal Reserve to prepare
for the next financial crisis.
REPRESENTATIVE TUCK said the proposal is to get money into the
economy for long-term infrastructure projects. He said the most
the state would participate is 35 percent.
4:32:53 PM
REPRESENTATIVE KNOPP asked where the funds for the state bank
would come from.
REPRESENTATIVE TUCK answered some funds would come from loan
guarantees, capital purchase, and the credit stimulus method.
REPRESENTATIVE KNOPP asked whether Alaska Industrial Development
and Export Authority (AIDEA) already does those things.
MR. DUNCAN answered that AIDEA doesn't directly fund science and
technology.
4:35:55 PM
CHAIR KITO shared his understanding that the proposal would
allow the state to issue bonds for infrastructure projects. He
asked about the revenue source for paying back the funds.
MR. DUNCAN answered the bank would be active as a securitizer."
He said it would create packages which would be put on account
with the Federal Reserve.
CHAIR KITO suggested the infrastructure bonds are for municipal
governments and they are paid back through municipal taxes.
MR. DUNCAN answered that is correct.
4:37:39 PM
CHAIR KITO suggested the state of Alaska can go to the federal
government with the bonds and the federal government can allow
the state to lend or generate capital for science and
technology.
MR. DUNCAN answered in the affirmative.
CHAIR KITO suggested it increases the state bank's ability to
enter into additional loans to support science and technology.
MR. DUNCAN answered in the affirmative.
CHAIR KITO clarified there is a two-step procedure. The credit
holding with the federal government allows for the creation of
additional loans. He said monetary policy means little to
people in Alaska. He said it would be creating a method to
access capital that is not currently accessible to the state.
4:39:48 PM
REPRESENTATIVE KNOPP spoke to issuance of bonds. He said he had
not heard how they were to be repaid. He stated science and
technology are not necessarily revenue generators.
MR. DUNCAN said the aim is to prepare for the next financial
reforms.
REPRESENTATIVE TUCK said that as bonds are packaged together for
municipal projects and the Federal Reserve takes them over, it
frees up more money.
REPRESENTATIVE KNOPP said the state does already have a bond
bank established.
REPRESENTATIVE TUCK answered he doesn't know what the bond bank
is or whether it is able to do fractional reserve banking.
CHAIR KITO answered it is the Alaska Municipal Bond Bank and it
is available for cities to support municipal bond programs.
4:42:50 PM
REPRESENTATIVE WOOL mentioned the state bank would provide 35
percent as a down payment for commercial banks. He asked
whether commercial banks are welcoming the initiative.
MR. DUNCAN clarified it also concerns other state agencies.
REPRESENTATIVE WOOL asked whether the funds would be the seed
money to give commercial banks confidence.
REPRESENTATIVE TUCK answered that the banking association had
been in Juneau, Alaska, about two weeks previous and the
proposal had peaked their interest.
4:45:02 PM
REPRESENTATIVE KNOPP asked whether the committee had any
testimony from the Department of Revenue or AIDEA or received
any thoughts from the administration.
CHAIR KITO answered that to date there had not been any
commentary from the administration.
REPRESENTATIVE TUCK added that since the last hearing there is a
fiscal note.
CHAIR KITO said the proposal was for a specific revenue source.
REPRESENTATIVE BIRCH commented it doesn't sound like a good
business solution to him.
REPRESENTATIVE WOOL commented he does not understand the
proposal.
REPRESENTATIVE KNOPP commented he is not ready to support the
proposed bill but is ready to support the concept. He said he'd
like to see a working group come forward with recommendations.
4:50:07 PM
The committee took an at-ease from 4:50 p.m. to 4:51 p.m.
4:51:19 PM
REPRESENTATIVE WOOL moved to report HB 376 out of committee with
individual recommendations and the accompanying fiscal notes.
4:51:48 PM
A roll call vote was taken. Representatives Stutes, Josephson,
Wool, and Kito voted in favor of HB 376. Representatives Birch
and Knopp voted against it. Therefore, HB 376 was reported out
of the House Labor and Commerce Standing Committee by a vote of
4-2.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB193 Opposition Letters 4.16.18.pdf |
HL&C 4/15/2018 10:00:00 AM |
HB 193 |
| HB 193 Followup HL&C Letter 4.19.18.pdf |
HL&C 4/15/2018 10:00:00 AM |
HB 193 |