HB 188-INTEREST RATES  3:30:47 PM CHAIR EGAN announced HB 188, sponsored by the House Labor and Commerce Committee, to be up for consideration. KONRAD JACKSON, staff to Representative Olson, chair of the House Labor and Commerce Committee, explained that HB 188 addresses maximum interest allowed on private loans of $25,000 or less. AS 45.45.010 (b) sets the rate on these loans at 5 percent above the rate charged to banks by the 12th Federal Reserve District. Currently that rate is .75 percent. When the statute was written, people were not imagining that rates would be as low as they are now. HB 188 would allow an individual offering a loan of $25,000 or less to charge an interest rate the greater of either 10 percent above the interest rate from the Federal Reserve District or 10 percent. So, today the maximum rate would be 10 percent. The hope is that this bill will encourage more commerce and allow individuals to finance small loans for real property and basically carry the note and get a little bit of return as opposed to 5.75 percent. This law is a default; so if it conflicts with other statutes, those statutes take precedence. 3:33:03 PM He said some questions were raised earlier and they have been addressed and since then this bill had had no opposition. The questions that have been asked are about whether this bill applies to credit card interest rates, pay day loans or credit unions and it doesn't; those are all covered under Title 6. GLENDA SEEKEN, Alaska Association of Realtors, supported HB 188. She said it would help realtors to be able to sell more land. SENATOR PASKVAN moved to report HB 188 from committee with individual recommendations and attached zero fiscal note. There were no objections and it was so ordered. 3:35:08 PM At ease from 3:35 PM to 3:36 PM. 3:37:25 PM CHAIR EGAN thanked members of the committee and staff for their hard work this year and adjourned the meeting at 3:37 PM.