HOUSE BILL NO. 32 "An Act making certain entities that are exempt from federal taxation under 26 U.S.C. 501(c)(3), (4), (6), (12), or (19) (Internal Revenue Code), regional housing authorities, and federally recognized tribes eligible for a loan from the Alaska energy efficiency revolving loan fund; relating to loans from the Alaska energy efficiency revolving loan fund; and relating to the annual report published by the Alaska Housing Finance Corporation." 9:06:17 AM Co-Chair Wilson reported that public testimony had previously been closed and the fiscal note had been reviewed. Representative LeBon noted that the Alaska Banker's Association had issued an opinion stating it believed the bill competed with the private sector. The association believed its members (nine banks operating in Alaska) could fill the need if asked. Co-Chair Wilson asked if the sponsor had reached out to the Alaska Banker's Association. JOHN SCANLON, STAFF, REPRESENTATIVE JONATHAN KREISS-TOMKINS replied that the sponsor had repeatedly reached out to the Alaska Banker's Association. Co-Chair Wilson asked if the sponsor had received any comments from the association. Mr. Scanlon replied that the sponsor had been unable to schedule a call with the association despite multiple attempts. Co-Chair Wilson remarked that the committee could hold the bill to hear from the association at a later time. She asked Representative LeBon for his preference. Representative LeBon replied that the association's opinion was probably not enough to hold the bill. His earlier comment was based on a written opinion from the association stating that the private sector could and had made the loans. He shared that he had made the loans in the past. He stated, "however designed, it's not a burning necessity, maybe it's more luxury, but the private sector can make these types of loans." Co-Chair Wilson appreciated the remarks and believed it was likely validated as the state was still looking for someone that wanted the specific kinds of loans. She asked the sponsor to reach out to the banking association to receive an answer on its comfort level before the bill reached the House floor. 9:08:51 AM Vice-Chair Ortiz asked if a denial letter had to be obtained from a commercial bank before one of the loans could be made. Mr. Scanlon deferred the question to the Alaska Housing Finance Corporation. Co-Chair Wilson replied that a denial letter was not required. She elaborated that on some commercial and agriculture loans a denial letter was required; however, that was not the case with the loans addressed by the bill. She reminded the committee that it had heard from numerous boroughs that they had done energy efficiency work and had found cheaper loans through the private market. She suggested that if the idea [in the legislation] did not work and they found the same thing was happening with nonprofits, perhaps it would be time to shut down the specific loan. She hoped to have the answers prior to a floor vote. Vice-Chair Johnston MOVED to REPORT HB 32 out of committee with individual recommendations and the accompanying fiscal note. Representative Carpenter OBJECTED. A roll call vote was taken on the motion. [Note: the first and second roll calls were VOIDED. See 9:14 a.m. for final roll call.] 9:12:04 AM AT EASE 9:14:45 AM RECONVENED Co-Chair Wilson clarified Vice-Chair Johnston would restate the motion. Vice-Chair Johnston MOVED to REPORT HB 32 out of committee with individual recommendations and the accompanying fiscal note. Representative Carpenter OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Josephson, Johnston, Merrick, Ortiz, Wilson, Foster OPPOSED: Knopp, LeBon, Sullivan-Leonard, Tilton, Carpenter The MOTION PASSED (6/5). There being NO further OBJECTION, HB 32 was REPORTED out of committee with three "do pass" recommendations, four "do not pass" recommendations, four "no recommendation" recommendations, and with one previously published zero note: FN1 (REV). 9:16:22 AM AT EASE 9:17:14 AM RECONVENED