Legislature(2009 - 2010)SENATE FINANCE 532
04/16/2009 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB10 | |
| HB134 | |
| HB26 | |
| HB121 | |
| HB221 | |
| HB109 | |
| HB172 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 10 | TELECONFERENCED | |
| += | HB 134 | TELECONFERENCED | |
| += | HB 26 | TELECONFERENCED | |
| + | HB 121 | TELECONFERENCED | |
| += | HB 221 | TELECONFERENCED | |
| += | HB 109 | TELECONFERENCED | |
| += | HB 172 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 16, 2009
9:40 a.m.
9:40:39 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 9:40 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None.
ALSO PRESENT
John Bitney, Staff, Representative John Harris; Juli Lucky,
Staff, Representative Mike Hawker; Darwin Peterson, Staff,
Senator Bert Stedman; Karen Lidster, Staff, Representative
John Coghill; Konrad Jackson, Staff, Representative Kurt
Olson; Lorie Hovanec, Director, Division of Banking and
Securities, Department of Commerce, Community and Economic
Development; Katie Koester, Staff, Representative Paul
Seaton; Diane Barrans, Executive Director, Postsecondary
Education Commission, Department of Education and Early
Development.
PRESENT VIA TELECONFERENCE
Steve VanSant, State Assessor, Department of Commerce,
Community and Economic Development; Marty McGee, Assessor,
Municipality of Anchorage; Sharon Weddelton, Chief Fiscal
Officer, Municipality of Anchorage.
SUMMARY
SB 10 "An Act requiring health care insurers to provide
insurance coverage for medical care received by a
patient during certain approved clinical trials
designed to test and improve prevention,
diagnosis, treatment, or palliation of cancer;
directing the Department of Health and Social
Services to provide Medicaid services to persons
who participate in those clinical trials; relating
to experimental procedures under a state plan
offered by the Comprehensive Health Insurance
Association; and providing for an effective date."
CS SB 10(HSS) was REPORTED out of Committee with
no recommendation and attached zero note 1 by the
Department of Health and Social Services and zero
note 2 by Department of Commerce, Community and
Economic Development.
HB 26 "An Act repealing the repeal of preventative and
restorative adult dental services reimbursement
under Medicaid; providing for an effective date by
repealing the effective date of sec. 3, ch. 52,
SLA 2006; and providing for an effective date."
HB 26 was REPORTED out of Committee with a "do
pass" recommendation and with attached fiscal note
1 by the Department of Health and Social Services.
HB 109 "An Act relating to eligibility for the Alaska
supplemental education loan program and to the
interest rate for a loan made under the Alaska
family education loan program; and providing for
an effective date."
HB 109 was REPORTED out of Committee with no
recommendation and attached zero note 1 by the
Department of Education and Early Development.
CS HB 121(FIN)
"An Act relating to and authorizing certain
municipalities to provide a property tax credit
for an improvement that aids in improving air
quality."
CS HB 121(FIN) was HEARD and HELD in Committee for
further consideration.
CS HB 134(RES)
"An Act relating to the terms and conditions of
commercial passenger vessel permits for the
discharge of graywater, treated sewage, and other
wastewater; establishing a science advisory panel
on wastewater treatment and effluent quality in
the Department of Environmental Conservation; and
providing for an effective date."
SCS CS HB 134(FIN) was REPORTED out of Committee
with a "do pass" recommendation and with attached
zero note by the Department of Environmental
Conservation.
CS HB 172(FIN)
"An Act relating to an investment in the education
loan fund; relating to authority for the
commissioner of revenue to enter into a bond
purchase agreement and letter of credit with the
Alaska Student Loan Corporation; and providing for
an effective date."
SCS CS HB 172(FIN) was REPORTED out of Committee
with a "do pass" recommendation and with attached
indeterminate fiscal note 3 by the Department of
Education and Early Development and indeterminate
fiscal note 4 by the Department of Revenue.
CS HB 221(L&C)
"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."
CS HB 221(L&C) was HEARD and HELD in Committee for
further consideration.
SENATE BILL NO. 10
"An Act requiring health care insurers to provide
insurance coverage for medical care received by a
patient during certain approved clinical trials
designed to test and improve prevention, diagnosis,
treatment, or palliation of cancer; directing the
Department of Health and Social Services to provide
Medicaid services to persons who participate in those
clinical trials; relating to experimental procedures
under a state plan offered by the Comprehensive Health
Insurance Association; and providing for an effective
date."
9:41:24 AM
Co-Chair Stedman noted that the bill had been heard
previously and asked if members concerns had been satisfied.
Co-Chair Hoffman MOVED to report CS SB 10(HSS) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS SB 10(HSS) was REPORTED out of Committee with no
recommendation and attached zero note 1 by the Department of
Health and Social Services and zero note 2 by Department of
Commerce, Community and Economic Development.
CS FOR HOUSE BILL NO. 134(RES)
"An Act relating to the terms and conditions of
commercial passenger vessel permits for the discharge
of graywater, treated sewage, and other wastewater;
establishing a science advisory panel on wastewater
treatment and effluent quality in the Department of
Environmental Conservation; and providing for an
effective date."
9:43:06 AM
Co-Chair Stedman provided history of the legislation.
JOHN BITNEY, STAFF, REPRESENTATIVE JOHN HARRIS, SPONSOR,
spoke briefly in support of the legislation.
Co-Chair Hoffman MOVED to report SCS CS HB 134(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SCS CS HB 134(FIN) was REPORTED out of Committee with a "do
pass" recommendation and with attached zero note by the
Department of Environmental Conservation.
HOUSE BILL NO. 26
"An Act repealing the repeal of preventative and
restorative adult dental services reimbursement under
Medicaid; providing for an effective date by repealing
the effective date of sec. 3, ch. 52, SLA 2006; and
providing for an effective date."
9:44:24 AM
JULI LUCKY, STAFF, REPRESENTATIVE MIKE HAWKER, SPONSOR, made
herself available for questions regarding the legislation.
Co-Chair Hoffman MOVED to report HB 26 out of Committee with
individual recommendations and the accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
HB 26 was REPORTED out of Committee with a "do pass"
recommendation and with attached fiscal note 1 by the
Department of Health and Social Services.
9:45:24 AM AT EASE
9:46:20 AM RECONVENED
CS FOR HOUSE BILL NO. 121(FIN)
"An Act relating to and authorizing certain
municipalities to provide a property tax credit for an
improvement that aids in improving air quality."
9:46:27 AM
Co-Chair Hoffman MOVED to adopt Work Draft 26-LS0540\T,
Cook, 4/14/09. Co-Chair Stedman OBJECTED for discussion.
DARWIN PETERSON, STAFF, SENATOR BERT STEDMAN, explained that
the CS adds one section to the bill, section 2. The section
provides a municipal tax exemption for non-profit
universities. The municipality must enact the exemption by
ordinance. The provision would put the Alaska Pacific
University on the same property tax footing as the
University of Alaska in the municipality of Anchorage. He
referred to a letter endorsing the legislation from former
municipal mayor Mark Begich (Copy on File). In addition, the
Anchorage municipal assembly enacted a resolution endorsing
the measure (Copy on File). University of Alaska president
Mark Hamilton also wrote in support (Copy on File). He did
not think there was opposition.
Senator Thomas asked for more information regarding lines 23
to 25 in the CS.
STEVE VANSANT, STATE ASSESSOR, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT (testified via
teleconference), replied that he had not seen the amendment,
although he assumed the language was the same as the
language in HB 10. The language would allow municipal
taxation on lands that the universities may lease to private
industry for private business. He gave an example of how the
provision could work.
9:50:29 AM
Senator Huggins asked if Alaska Pacific University falls in
the category of property of a private, nonprofit four-year
college. Mr. VanSant replied in the affirmative.
9:51:00 AM AT EASE
9:51:13 AM RECONVENED
Co-Chair Stedman removed his OBJECTION to the adoption of
the CS. There being NO further OBJECTION, it was so ordered.
Co-Chair Hoffman MOVED that the committee request a title
change resolution as a title change would be needed. There
being NO OBJECTION, it was so ordered.
KAREN LIDSTER, STAFF, REPRESENTATIVE JOHN COGHILL, SPONSOR,
explained that the CS includes the municipal tax; when the
bill became HB 121, it was a request by the municipality of
Fairbanks and an attempt to deal with issues of non-
attainment, or specifically air quality called 2.5PM. The
bill would allow the municipalities to adopt an ordinance
and provide a tax credit to individuals that made
improvements in heating mechanisms to help with air quality.
The bill deals only with municipalities that have within
their boundaries areas that fail to meet federal or state
quality standards for fine particulates known as 2.5PM.
Co-Chair Stedman asked which municipalities qualify. Ms.
Lidster answered that at this time the municipalities of
Fairbanks and Juneau qualify.
9:54:10 AM
MARTY MCGEE, ASSESSOR, MUNICIPALITY OF ANCHORAGE (testified
via teleconference), stated that he was surprised by the
amendment which appears to carry the language from HB 10.
He reported that the municipality had worked with the
committee and the sponsor to modify the language in HB 10.
To the extent that the language is the same, the
municipality does not object to the proposal.
SHARON WEDDELTON, CHIEF FISCAL OFFICER, MUNICIPALITY OF
ANCHORAGE (testified via teleconference), echoed surprise
that the municipality was not notified about the amendment.
She stated disappointment. She had no additional comments.
Co-Chair Stedman explained that things can, on occasion,
move quickly late in the session.
CS HB 121(FIN) was HEARD and HELD in Committee for further
consideration.
CS FOR HOUSE BILL NO. 221(L&C)
"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."
9:56:39 AM
KONRAD JACKSON, STAFF, REPRESENTATIVE KURT OLSON, reported
that at the end of July 2008, new federal law went into
effect called the Secure and Fair Enforcement for Mortgage
Licensing Act (SAFE). The act includes the Nationwide
Mortgage Licensing System and Registry. House Bill 221 was
the minimum that the state needs to comply with the
licensing system. The deadline for compliance is July 30,
2009.
LORIE HOVANEC, DIRECTOR, DIVISION OF BANKING AND SECURITIES,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
noted that the division licenses mortgage loan originators,
professionals, and their companies, and administer the
state's current mortgage lending statute. She reported that
a number of years ago, state regulators developed the
national mortgage licensing system. Since its
implementation, 30 states have joined. Alaska would like to
join August 1 and needs the legislation in order to do so.
State regulators are in favor of the provision. She referred
to her April 14, 2009 memo describing the benefits of HB 221
(Copy on File).
Senator Thomas queried the benefit to the state of being a
member of the network. Ms. Hovanec responded that the main
benefit is that there would be a database of the activities
and disciplinary actions regarding mortgage companies and
professionals doing business in Alaska. She compared the
provision with the security system in place for investment
advisors.
10:00:36 AM
Co-Chair Stedman asked if the department supported the bill.
Ms. Hovanec responded yes.
Senator Huggins asked how many states have complied with the
federal act. Ms. Hovanec replied that approximately 15 have
complied and others have legislation pending. Some states
have joined the licensing system and do not appear to need
statutory enabling to do so.
Co-Chair Stedman mentioned the fiscal note for $98,000 from
the Department of Commerce, Community and Economic
Development.
CS HB 221(L&C) was HEARD and HELD in Committee for further
consideration.
HOUSE BILL NO. 109
"An Act relating to eligibility for the Alaska
supplemental education loan program and to the interest
rate for a loan made under the Alaska family education
loan program; and providing for an effective date."
10:02:37 AM
KATIE KOESTER, STAFF, REPRESENTATIVE PAUL SEATON, CHAIR,
HOUSE EDUCATION COMMITTEE, summarized the legislation as
addressing the Alaska Commission on Postsecondary
Education's inability to get financial backing for
alternative student loans. The legislation requires
borrowers for an Alaska student loan to have either good
credit or a co-signer. House Bill 109 also sets the interest
rate of the Family Education Loan (FEL), which allows an
individual to borrow on behalf of another family member.
Currently, the interest is rate is 7.3 percent; the
provision would allow the rate to be set in the same manner
as the Alaska student loan.
Co-Chair Stedman mentioned the zero fiscal note.
Senator Thomas asked what loans would be affected by the
legislation. Ms. Koester replied that the Stafford loan
would not change as it is federally guaranteed. The changes
would apply to the Alaska student loan and the FEL.
10:06:28 AM
DIANE BARRANS, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION
COMMISSION, DEPARTMENT OF EDUCATION and EARLY DEVELOPMENT,
elaborated that the credit criteria that is currently
applied to supplemental education loans would change.
Applicants would not qualify for loans if found to have
adverse credit. Qualification would begin at the low end of
the good credit scale.
Co-Chair Hoffman MOVED to report HB 109 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
HB 109 was REPORTED out of Committee with no recommendation
and attached zero note 1 by the Department of Education and
Early Development.
CS FOR HOUSE BILL NO. 172(FIN)
"An Act relating to an investment in the education loan
fund; relating to authority for the commissioner of
revenue to enter into a bond purchase agreement and
letter of credit with the Alaska Student Loan
Corporation; and providing for an effective date."
10:07:48 AM
Co-Chair Hoffman MOVED to ADOPT Work Draft 26-GH1211\S,
Cook, 4/15/09. Co-Chair Stedman OBJECTED for discussion.
Darwin Peterson, Staff, Senator Bert Stedman, detailed that
the work draft would make three changes in the original
bill. The first two changes are found on page 3, sub-Section
H, Lines 2-5, will lessen the terms for investments, from 5
years to 4 years. The third change is found in Section 3,
page 3, line 15, which requires the Alaska Student Loan
Corporation to develop a proposal for repayment of student
loans during the legislative interim, to be reviewed on
January 19, 2010 by the legislature.
Co-Chair Stedman pointed out that at that the time the
legislature would consider forgiveness of student loans for
particular situations.
Mr. Peterson agreed that this was Uncodified law, asking for
the Alaska Student Loan Corporation to provide imput before
legislation is drafted in the 2010 legislative session.
Co-Chair Stedman removed OBJECTION.
10:10:28 AM
Diane Barrans, Executive Director, Postsecondary Education
Commission, Department of Education and Early Development
commented that the department and the committee should work
to make the program maximally accessible to Alaskans with
incentives beyond what the corporation could provide
internally.
Co-Chair Hoffman reminded of questions delinquency rates and
in-state and out-of-state loans that had yet to be answered.
10:11:55 AM AT EASE
10:12:18 AM RECONVENED
Co-Chair Stedman requested further clarification on
committee questions be presented by the department in the
proposal scheduled to be presented in January 2010.
Co-Chair Hoffman MOVED to report SCS CS HB 172(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
10:13:20 AM AT EASE
10:13:39 AM RECONVENED
Co-Chair Hoffman WITHDREW the motion.
Co-Chair Hoffman MOVED to request resolution for title
change. There being NO OBJECTION, it was so ordered.
Co-Chair Hoffman MOVED to report SCS CS HB 172(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SCS CS HB 172(FIN) was REPORTED out of Committee with a "do
pass" recommendation and with attached indeterminate fiscal
note 3 by the Department of Education and Early Development
and indeterminate fiscal note 4 by the Department of
Revenue.
10:14:53 AM
ADJOURNMENT
The meeting was adjourned at 10:14 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 02 HB221 Sponsor Statement.pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 221 |
| 04 HB221 NMLS overview.pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 221 |
| AML Resolution.doc.pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 121 |
| 07 HB221 VER e.pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 221 |
| 06 HB221 Letter of support-opposition_ JMartin 4-10-09.pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 221 |
| FNSB_letter of support herron.doc.pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 121 |
| FNSB_letter of support_Munoz.doc.pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 121 |
| Letter ACA.pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 121 |
| HB121_Ltrs_of_Support_II[1].pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 121 |
| HB 221 Div of Banking and Securities Letter.pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 221 |
| HCS CSSB 75 (FIN) Version N.pdf |
SFIN 4/16/2009 9:00:00 AM |
SB 75 |
| HCS SB 75 FIN spreadsheet.pdf |
SFIN 4/16/2009 9:00:00 AM |
SB 75 |
| SCSforCSfor HB172(FIN)SWORK DRAFT.pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 172 |
| SCSforCSHB121(FIN)TWORK DRAFT.pdf |
SFIN 4/16/2009 9:00:00 AM |
HB 121 |
| sectional.doc |
SFIN 4/16/2009 9:00:00 AM |
HB 121 |
| sponsor statement.doc |
SFIN 4/16/2009 9:00:00 AM |
HB 121 |