Legislature(2017 - 2018)BELTZ 105 (TSBldg)

01/30/2018 01:00 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Public Testimony --
-- Please Note Time Change --
*+ SB 126 VISITING PHYSICIANS WITH SPORTS TEAMS TELECONFERENCED
Moved SB 126 Out of Committee
+ HB 208 TRUSTS; COMM PROP TRUSTS; POWERS OF APPT TELECONFERENCED
Moved HB 208 Out of Committee
+= HB 102 LIMITED TEACHER CERTIFICATES; LANGUAGES TELECONFERENCED
Moved CSHB 102(EDC) Out of Committee
+ HB 114 BOILER/PRESSURE VESSEL INSPECTION REPORTS TELECONFERENCED
Moved HB 114 Out of Committee
+ HB 121 OCC. HEALTH AND SAFETY CIVIL PENALTIES TELECONFERENCED
Moved HB 121 Out of Committee
+ HB 124 BENEFIT CORPORATIONS TELECONFERENCED
Moved CSHB 124(FIN) Out of Committee
+ HB 86 STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL TELECONFERENCED
Heard & Held
+ HCR 8 KODIAK SEAFOOD & MARINE SCIENCE CENTER TELECONFERENCED
Moved HCR 8 AM Out of Committee
        HB  86-STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL                                                                    
                                                                                                                                
2:34:23 PM                                                                                                                    
CHAIR COSTELLO announced the consideration of HB 86.                                                                            
                                                                                                                                
2:34:38 PM                                                                                                                    
REPRESENTATIVE  MATT CLAMAN,  Alaska  State Legislature,  Juneau,                                                               
Alaska,  sponsor of  HB  86, quoted  Thomas  Jefferson who  said,                                                               
"Government is best which governs least."  He said the goal of HB
86  is   to  revoke  the   Alaska  Commission   on  Postsecondary                                                               
Education's  authority  to  use the  nonrenewal  of  occupational                                                               
licenses as an  incentive to ensure the payment  of student loans                                                               
that  are  in default.  The  commission  has not  exercised  this                                                               
authority since  2010 and  has found that  garnishing wages  is a                                                               
more effective  tool. In the  past, those who had  their licenses                                                               
revoked  left the  state and  established practice  elsewhere. In                                                               
those instances, the  state not only lost the  ability to collect                                                               
but  also a  skilled member  of the  Alaskan workforce.  Thus, it                                                               
makes  sense to  ensure that  this sort  of government  overreach                                                               
cannot occur.                                                                                                                   
                                                                                                                                
2:35:56 PM                                                                                                                    
CERI GODINEZ, Staff, Representative Matt Claman, Alaska State                                                                   
Legislature, Juneau, Alaska, presented HB 86, reading from the                                                                  
following prepared statement:                                                                                                   
                                                                                                                                
     House Bill  86 repeals current statutes  that allow the                                                                    
     Alaska Commission on  Postsecondary Education (ACPE) to                                                                    
     threaten  nonrenewal   of  occupational   licenses  for                                                                    
     individuals who have defaulted  on their student loans.                                                                    
     Repealing   this   authority    will   allow   licensed                                                                    
     individuals to continue their work  in order to earn an                                                                    
     income and pay back  their defaulted loans without fear                                                                    
     of losing their license.                                                                                                   
                                                                                                                                
     There are  already many difficulties that  one faces if                                                                    
     they  default on  their student  loans, not  limited to                                                                    
     late fees, court costs, liens  on property, and adverse                                                                    
     reports to consumer reporting agencies.                                                                                    
                                                                                                                                
     The current statute states that  the commission has the                                                                    
     authority to  provide notice  to a  licensing authority                                                                    
     for nonrenewal of  a license upon default.  If the ACPE                                                                    
     posts such  notice, the licensing entity  may not renew                                                                    
     said  license during  the next  renewal cycle.  Many of                                                                    
     these laws  were passed in  the 1990s and  early 2000s,                                                                    
     when  student aid  was often  provided by  states. Now,                                                                    
     however, most loans are federal.                                                                                           
                                                                                                                                
     In  2016,  Montana became  the  first  state to  repeal                                                                    
     similar statutes  and now only  20 states  remain. This                                                                    
     bill allows  us to follow Montana's  example and reduce                                                                    
     that  number  to 19  states  and  protect our  licensed                                                                    
     nurses,   pharmacists,    social   workers,   teachers,                                                                    
     correctional officers, and many others.                                                                                    
                                                                                                                                
     I'll  now provide  a brief  sectional  analysis of  the                                                                    
     bill.                                                                                                                      
                                                                                                                                
     Section  One   deletes  language  that  is   no  longer                                                                    
     necessary after the repeals mentioned in section two.                                                                      
                                                                                                                                
     Section Two repeals the following statutes:                                                                                
                                                                                                                                
        AS 14.43.145(a)(4) which gives authority to the                                                                         
          commission to provide notice of default to a                                                                          
        licensing entity for nonrenewal of a license.                                                                           
                                                                                                                                
        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.                                                                                                               
                                                                                                                                
CHAIR COSTELLO asked Ms. Butler  if the department had a position                                                               
on the bill.                                                                                                                    
                                                                                                                                
2:38:26 PM                                                                                                                    
STEPHANIE  BUTLER,  Executive  Director,   Alaska  Commission  on                                                               
Postsecondary   Education,  Department  of  Education  and  Early                                                               
Development    (DEED),   Juneau,   Alaska,    stated   that   the                                                               
commission  is not  currently  using  its authority  to threaten                                                                
nonrenewal  of  an  occupational  license   for individuals   who                                                               
have  defaulted  on their  student  loans.  It  has not  been  an                                                               
effective  tool  and therefore  the commission  has  no concerns                                                                
with HB  86.                                                                                                                    
                                                                                                                                
CHAIR  COSTELLO  asked  her to  comment  on  the March  20,  2017                                                               
memo  in which Representative   Birch asked  if she  had a  sense                                                               
of  the magnitude  of  the  debt and  number  of  recipients  who                                                               
would  be impacted  by the bill.                                                                                                
                                                                                                                                
MS.  BUTLER  said at  that  time there  was  about  $240 million                                                                
in  outstanding   state  loans.  The  value  of  that  portfolio                                                                
currently    is  slightly    less   than   $200   million.    She                                                               
reiterated   that   the  commission   has   found   it  is   most                                                               
effective   to  collect   on  defaulted   loans   by  garnishing                                                                
either  wages or the  permanent  fund dividend  PFD.                                                                            
                                                                                                                                
CHAIR  COSTELLO  noted  that the  memo  identified  46 defaulted                                                                
borrowers  with  outstanding  loans, none  of whom  are employed                                                                
in Alaska.                                                                                                                      
                                                                                                                                
MS.  BUTLER   said  that's   correct  and   the  commission   has                                                               
released  the holds  on those licenses.                                                                                         
                                                                                                                                
CHAIR  COSTELLO   asked  if  the  comment   about  garnishing   a                                                               
permanent  fund dividend  was hypothetical.                                                                                     
                                                                                                                                
MS. BUTLER  answered  yes.                                                                                                      
                                                                                                                                
SENATOR  MICCICHE   asked  if the  commission   is powerless   to                                                               
collect  on those 46  defaulted  loans.                                                                                         
                                                                                                                                
MS.  BUTLER   replied  there   are  nationwide   tools  such   as                                                               
credit  reporting,  but  the  ability  to collect  is  less  when                                                               
the defaulted  borrower  is out  of state.                                                                                      
                                                                                                                                
SENATOR  MICCICHE   asked  if garnishing   wages  is  an option,                                                                
although  more difficult,  when  the  defaulted borrower  is  out                                                               
of state.                                                                                                                       
                                                                                                                                
MS. BUTLER  answered  yes.                                                                                                      
                                                                                                                                
SENATOR  MICCICHE   asked,  "It's  not  something  you  use,  and                                                               
you  have  no  concern   about  eliminating   the  potential   to                                                               
revoke  licensing?"                                                                                                             
                                                                                                                                
MS.  BUTLER  replied  that's  correct;  it  wasn't  an effective                                                                
tool.                                                                                                                           
                                                                                                                                
2:42:52 PM                                                                                                                    
SENATOR   GARDNER  asked   if  [$200]  million   was  the   total                                                               
outstanding,  not the  amount in  default.                                                                                      
                                                                                                                                
MS. BUTLER  replied  that's correct.                                                                                            
                                                                                                                                
SENATOR  MEYER  summarized  that  nonrenewal  has not  been  used                                                               
since  2010,  and  the  best  tool  is  to  garnish  the  PFD  or                                                               
wages.                                                                                                                          
                                                                                                                                
MS. BUTLER  said that's  correct.                                                                                               
                                                                                                                                
SENATOR  MICCICHE  expressed  interest  in  looking  at the  data                                                               
on the  average amounts  of the  defaulted loans.                                                                               
                                                                                                                                
MS. BUTLER  agreed  to follow up  with the information.                                                                         
                                                                                                                                
CHAIR   COSTELLO   asked   the   sponsor   to  comment   on   the                                                               
perception  that  it's  a  lose-lose  situation  if  a defaulted                                                                
borrower  leaves  the  state.  The  state  doesn't  collect,  and                                                               
it also  loses that  worker.                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN  said  his office  found that  having  the                                                               
authority  to exercise  this power  was a double  negative.                                                                     
                                                                                                                                
CHAIR  COSTELLO  said  she  would  hold  the  bill  awaiting  the                                                               
information    on    the   46    borrowers    with   outstanding                                                                
occupational  license  holds.                                                                                                   
                                                                                                                                
SENATOR   MEYER   asked   if   licensing    entities   check   on                                                               
outstanding  loans  in other states.                                                                                            
                                                                                                                                
MS.  BUTLER  said  she  was unaware   of any  state  reciprocity                                                                
specific  to defaulted  student  loans.                                                                                         
                                                                                                                                
SENATOR  MEYER  asked  if  they  were  talking   about  state  or                                                               
federal  loans.                                                                                                                 
                                                                                                                                
MS. BUTLER  replied  only state  loans.                                                                                         
                                                                                                                                
SENATOR  MEYER  commented   on  the  need  to keep  students   in                                                               
Alaska.                                                                                                                         
                                                                                                                                
SENATOR  MICCICHE   clarified   that  his  request   was  on  the                                                               
outstanding  state  loans.   He added  that  he  is  inclined  to                                                               
forgive  loans to  encourage  Alaskans  to stay  here as opposed                                                                
to eliminating  a collection  tool.                                                                                             
                                                                                                                                
2:49:54 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on HB 86.                                                                                
                                                                                                                                
2:50:06 PM                                                                                                                    
AMBER  MICHAIS,  Registered  Nurse,  Alaska  Nurses  Association,                                                               
Anchorage, Alaska, stated  support for HB 86 and  described it as                                                               
student  debt relief.  She  said student  debt  is a  significant                                                               
issue and  it makes sense  to keep  someone who has  student debt                                                               
working.  Preventing them  from  working by  nonrenewal of  their                                                               
professional  license makes  it  difficult to  impossible to  pay                                                               
back their  loan. HB 86 will  ensure that Alaska nurses  are able                                                               
to continue their  profession so that Alaskans  receive care when                                                               
it's needed.                                                                                                                    
                                                                                                                                
She shared  that she has high  balance loans and the  current law                                                               
could cripple her  ability to support her family  should she find                                                               
herself in default.                                                                                                             
                                                                                                                                
SENATOR GARDNER pointed out that debt  relief is not the focus of                                                               
the bill. It's about how to  best protect the state's interest in                                                               
collecting where appropriate.                                                                                                   
                                                                                                                                
2:53:29 PM                                                                                                                    
CHAIR  COSTELLO closed  public testimony  on HB  86 and  held the                                                               
bill in committee.                                                                                                              

Document Name Date/Time Subjects
SB 126 Sectional Analysis.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
SB 126 Sponsor Statement.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
SB 126 Testimony.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
SB126-DCCED-CBPL-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
HB208 Sectional Analysis ver A 4.10.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 208
HB208-LAW-CIV-01-26-2018.pdf SL&C 1/30/2018 1:00:00 PM
HB 208
Sponsor Statement - HB - 208.pdf SL&C 1/30/2018 1:00:00 PM
HB 208 Fiscal Note 01.26.18
HB102 Supporting Document-Nome Schools Resolution 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102 Supporting Document-Koniag KANA Roundtable Resolution 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102 Supporting Document-Dr Wilson Letter 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102 Supporting Document-Native Village of Port Lions Resolution 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HCR 8 Supporting Document-KSMSC Budget.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Supporting Document-APICDA 12.10.15.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Supporting Document AML 11.5.15.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 ver A.A.PDF SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Explanation of Changes ver A.A 1.28.17.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Leg Research Report 1.2.16.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Sponsor Statement ver A.A 1.28.18.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR8-LEG-SESS-01-29-18.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HB102 Fiscal Note EED-SSA-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102.PDF SL&C 1/30/2018 1:00:00 PM
HB 102
HB114 Sectional Analysis.pdf SL&C 1/30/2018 1:00:00 PM
HB 114
HB114 Sponsor Statement.pdf SL&C 1/30/2018 1:00:00 PM
HB 114
HB114 ver D.PDF SL&C 1/30/2018 1:00:00 PM
HB 114
HB 114-DOLWD-MI-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 114
HB121-DOLWD-OSH-1-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - ver O 2.27.17.PDF SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Sponsor Statement 3.6.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Sectional Analysis 3.6.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Support Document - Federal memo to state plans 02.23.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Additional Document - Sponsor's Reply to House Judiciary Committee Questions 3.10.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Supporting Document-OSHA Fact Sheet 3.6.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB124 Explanation of changes from ver A to ver U 1.18.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 Sponsor Statement 1.18.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 Sectional Analysis ver U 1.18.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124CS(FIN)-DCCED-CBPL-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 Support Documents - Letters of Support 4.11.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 ver. U 5.11.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB 86 ver A.PDF SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Sponsor Statement.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Fiscal Note EED-ACPE.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 Supporting Document - Letter of Support.PDF SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Background - Questions Memo HLNC.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Background - ACPE Loan Default Consequences.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Background - NY Times Student Loans.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 Senator Costello Senate Labor and Commerce Committee Follow-up.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
ASMA Letter of Support SB 126.pdf SL&C 1/30/2018 1:00:00 PM
SB 126