05/03/2018 02:30 PM Senate FINANCE

CS FOR HOUSE BILL NO. 304(FIN)                                                                                                
                                                                                                                                
     "An Act relating to the Alaska microloan revolving                                                                         
     loan fund and loans from the fund."                                                                                        
                                                                                                                                
3:31:51 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon conveyed  that the  committee had  heard                                                                    
the  Senate version  of  the  bill on  April  10, 2018.  The                                                                    
committee  had heard  a  presentation on  the  bill and  had                                                                    
opened and  closed the public  hearing and had  reviewed the                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon  relayed that her office  heard a concern                                                                    
regarding  the   time-frame  of   whether  the   loans  were                                                                    
revolving  or not  based on  the  length of  the loan  being                                                                    
proposed  on page  2 of  the bill.  She asked  for committee                                                                    
discussion  before amendments  were  considered. There  were                                                                    
members  who wanted  a time  frame of  10 years,  and others                                                                    
that proposed 12 years.                                                                                                         
                                                                                                                                
3:33:33 PM                                                                                                                    
                                                                                                                                
Senator  von  Imhof  recalled previous  discussions  on  the                                                                    
bill. She  understood the state's perspective  of wanting to                                                                    
increase the  term from six  years to  15 years in  order to                                                                    
allow for cash  flow to develop in the industry;  as well as                                                                    
provide time for the borrower  to afford to make payments on                                                                    
the loan. She  referenced a lack of loan  applicants and the                                                                    
idea  that   increasing  the  amortization   schedule  would                                                                    
increase the affordability of the  loan. She considered that                                                                    
the longer the term, the higher  the risk was for the state.                                                                    
She thought  there could be  a compromise between 10  and 15                                                                    
years.                                                                                                                          
                                                                                                                                
Senator Micciche  stated that he  was in accord with  a term                                                                    
of twelve  years. He  observed that  other state  loan funds                                                                    
had significantly longer terms. He  hoped to see more use of                                                                    
the loan fund and more economic development from the fund.                                                                      
                                                                                                                                
Senator von Imhof MOVED to ADOPT Amendment 1:                                                                                   
                                                                                                                                
     Page 2, line 2, following "term of"                                                                                        
          DELETE "15"                                                                                                         
          INSERT "12"                                                                                                         
                                                                                                                                
There being  NO OBJECTION,  it was  so ordered.  Amendment 1                                                                    
was ADOPTED.                                                                                                                    
                                                                                                                                
Ms.   Cioni-Haywood  expressed   that  the   department  was                                                                    
supportive   of   the   amendment,   which   still   allowed                                                                    
flexibility   within  the   program.  There   would  be   no                                                                    
associated changes to the fiscal note.                                                                                          
                                                                                                                                
3:36:40 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:37:02 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Bishop  discussed FN 1,  which was a  zero fiscal                                                                    
note  from Department  of Commerce,  Community and  Economic                                                                    
Development.  He read  from the  Analysis on  page 2  of the                                                                    
fiscal note:                                                                                                                    
                                                                                                                                
     If this legislation were to  pass a regulations project                                                                    
     would be required; the minimal  costs associated can be                                                                    
     absorbed by  current budgetary authorization.  There is                                                                    
     no  anticipated  fiscal  impact   to  the  Division  of                                                                    
     Economic Development from this bill.                                                                                       
                                                                                                                                
Vice-Chair Bishop  MOVED to ADOPT  MOVED to report  SCS CSHB
(FIN)  out of  Committee with  individual recommendations                                                                    
and the accompanying fiscal note.  There being NO OBJECTION,                                                                    
it was so ordered.                                                                                                              
                                                                                                                                
SCS CSHB 304(FIN)  was REPORTED out of committee  with a "do                                                                    
pass" recommendation and with  one previously published zero                                                                    
fiscal note: FN 1(CED).                                                                                                         
                                                                                                                                
3:38:14 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:40:55 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon  discussed the  agenda for  the following                                                                    
day.