Legislature(2017 - 2018)BARNES 124

03/22/2017 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 132 TRANSPORTATION NETWORK COMPANIES TELECONFERENCED
Heard & Held
*+ HB 144 EXTEND BOARD OF VETERINARY EXAMINERS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 86 STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HJR 14 FCC: INCREASE RURAL HEALTH CARE BUDGET TELECONFERENCED
Moved HJR 14 Out of Committee
+= HB 157 LIFE & HEALTH INSURANCE GUARANTY ASSN. TELECONFERENCED
Moved HB 157 Out of Committee
-- Public Testimony --
+= HB 119 AIDEA:DIVIDEND TO STATE;INCOME;VALUATION TELECONFERENCED
Moved HB 119 Out of Committee
-- Public Testimony --
+= HB 79 OMNIBUS WORKERS' COMPENSATION TELECONFERENCED
Moved CSHB 79(L&C) Out of Committee
        HB  86-STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL                                                                    
                                                                                                                                
3:52:01 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE  BILL   NO.  86,   "An  Act   relating  to   nonrenewal  of                                                               
occupational licenses for default on a student loan."                                                                           
                                                                                                                                
3:52:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MATT CLAMAN,  Alaska State  Legislature, reminded                                                               
the  committee that  Thomas Jefferson  said, "Government  is best                                                               
which governs least,"  and the goal in bringing HB  86 forward is                                                               
to  revoke the  Alaska Commission  on Post-Secondary  Education's                                                               
authority  to  use non-renewal  of  occupational  licenses as  an                                                               
incentive to  ensure repayment of  student loans in  the instance                                                               
of a default.   He described that the  consequences of defaulting                                                               
are already severe,  and as the commission has  not exercised its                                                               
authority since 2010, it makes sense to repeal these statutes.                                                                  
                                                                                                                                
3:53:21 PM                                                                                                                    
                                                                                                                                
OWEN PHILLIPS,  Staff, Representative  Matt Claman,  Alaska State                                                               
Legislature,  reiterated  that  HB 86  repeals  current  statutes                                                               
allowing the Alaska Commission  on Postsecondary Education (ACPE)                                                               
to threaten non-renewal of  occupational licenses for individuals                                                               
who  have  defaulted  on  their  student  loans.  Repealing  this                                                               
authority will allow licensed individuals  to continue their work                                                               
and earn  an income  and pay back  their defaulted  loans without                                                               
fear  of  losing  their  license.     He  noted  that  there  are                                                               
difficulties one faces if defaulting  on their student loans such                                                               
as,  late  fees, court  costs,  liens  on property,  and  adverse                                                               
reports to  consumer reporting agencies.   Under current statute,                                                               
the  Alaska  Commission  on Postsecondary  Education  (ACPE)  has                                                               
authority to provide  notice to the licensing  authority for non-                                                               
renewal of a  license.  Many of the laws  giving authority to the                                                               
ACPE were  passed in  the 1990s  and 2000s  when student  aid was                                                               
often  provided by  states, currently,  most  loans are  provided                                                               
federally.   Last year, he  advised, the State of  Montana became                                                               
the first  state to repeal  similar statutes and 21  states still                                                               
have similar  statutes.   This bill allows  Alaska to  follow the                                                               
example of the  State of Montana and reduce that  number to 20 in                                                               
order  to   protect  the  state's  nurses,   pharmacists,  social                                                               
workers, teachers, correctional officers, and many others.                                                                      
                                                                                                                                
3:54:47 PM                                                                                                                    
                                                                                                                                
MR. PHILLIPS offered an analysis of the bill as follows:                                                                        
                                                                                                                                
     Section 1 deletes language that is no longer necessary                                                                     
     after the repeals mentioned in Sec. 2.                                                                                     
                                                                                                                                
     Sec.  2 repeals  AS  14.43.145(a)(4),  which gives  ...                                                                    
     authority  to  the  commission  to  provide  notice  of                                                                    
     default  to a  licensing  entity for  non-renewal of  a                                                                    
     license.  Repeals AS 14.43.148,  which indicates that a                                                                    
     licensing entity may  not renew a license  if they have                                                                    
     received notice  from the commission that  the licensee                                                                    
     has defaulted on  a loan issued by the  commission.  AS                                                                    
     21.27.390(d), which references temporary licenses.                                                                         
                                                                                                                                
3:56:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH remarked  that "This is kind  of our version                                                               
of -- of  they're trying to collect on debt,"  and noted that the                                                               
debt collection appeared  reasonable.  He asked  the magnitude of                                                               
the  debt,  and  the  number   of  recipients  impacted  by  this                                                               
legislation.                                                                                                                    
                                                                                                                                
MR.  PHILLIPS opined  that  since 2010,  the  commission has  not                                                               
acted upon the section forcing the default.                                                                                     
                                                                                                                                
REPRESENTATIVE BIRCH  remarked that  in the event  someone misses                                                               
their car payments, the "repo man"  tows away the car.  The State                                                               
of  Alaska  presumably has  a  fairly  significant liability  out                                                               
there, vis-a-vis  many educated  folks.    Granted  the authority                                                               
has  not been  exercised,  he  remarked, but  it  is  a means  of                                                               
enforcing collection  at some level.   He  asked the size  of the                                                               
liability,  how   rapidly  that   liability  is  paid   off,  the                                                               
timeframe, and how many people it impacts.                                                                                      
                                                                                                                                
REPRESENTATIVE  CLAMAN responded  that  the  Alaska Student  Loan                                                               
Corporation  has multiple  means  to encourage  payment and  this                                                               
method  has  rarely been  used  because  there are  fewer  Alaska                                                               
student  loans due  to more  federal student  loans.   He related                                                               
that taking  away someone's nursing license,  for example, causes                                                               
that person  to work at  a lower wage  and makes the  person more                                                               
likely to default.                                                                                                              
                                                                                                                                
4:00:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH  related that  he was not  disputing whether                                                               
HB  86  might be  a  good  idea,  his  question was  whether  the                                                               
necessary research had been performed  in order to understand the                                                               
general  magnitude of  the liability,  how many  people would  be                                                               
impacted, and the timeframe in which the loans would be repaid.                                                                 
                                                                                                                                
MR.  PHILLIPS opined  that  prior to  2010,  this non-renewal  of                                                               
licensing  authority  was  used  155  times,  and  of  those  155                                                               
individuals,  49 did  not pay  any  amount, left  the state,  and                                                               
assumed to  have found  a license  elsewhere.   He said  he would                                                               
reach  out  to  Stephanie   Butler,  Executive  Director,  Alaska                                                               
Commission  on  Postsecondary  Education (ACPE)  in  response  to                                                               
Representative Birch's questions.                                                                                               
                                                                                                                                
REPRESENTATIVE BIRCH  advised he was looking  for numbers roughly                                                               
to the nearest $500,000.                                                                                                        
                                                                                                                                
4:02:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP  asked Representative  Claman, "Do  you just                                                               
read the  books until  you find  a statute  that doesn't  fit any                                                               
longer?"   He asked  what brought this  issue forward  because it                                                               
had been unused for eight years.                                                                                                
                                                                                                                                
REPRESENTATIVE CLAMAN credited  one idea to a  prior staff member                                                               
currently  attending law  school, and  answered that  someone had                                                               
approached  the  staffer  with  this issue.    The  staff  member                                                               
performed  research and  realized  the non-renewal  authorization                                                               
was  rarely  used  and  brought  it  to  Representative  Claman's                                                               
attention.                                                                                                                      
                                                                                                                                
CHAIR KITO  opened public testimony.   After ascertaining  no one                                                               
wished to testify, closed public testimony on HB 86.                                                                            
                                                                                                                                
[HB 86 was held over.]                                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
CS HB132 ver R Work Draft 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
CS HB132 ver R Work Draft Sectional Analysis 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
CS HB132 ver R Work Draft Explanation of Changes 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HJR014 Fiscal Note-HLAC 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HJR 14
HB132 Supporting Documents - Letters of Opposition 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Supporting Documents Index 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Supporting Documents - Letters of Support 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB144 Legislative Audit 3.14.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 144
HB144 Sponsor Statement 3.14.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 144
HB144 Fiscal Note DCCED-DCBPL 3.17.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 144
HB086 Supporting Document - ACPE Loan Default Consequences 3.2.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 86
HB086 Supporting Document - NPR Article-States Review 3.2.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 86
HB086 Supporting Document - Letter of Support ANA 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 86
HB086 Fiscal Note DEED-APEC 3.2.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 86
HB086 Sponsor Statement 3.2.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 86
HB079 Sectional Analysis Version O 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 79
HB132 Version J Amendment 1 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Version R Amendment 1 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Version R Amendment 2 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Version R Amendment 3 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Version R Amendment 4 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132