HOUSE FINANCE COMMITTEE May 9, 2025 9:10 a.m. 9:10:20 AM CALL TO ORDER Co-Chair Foster called the House Finance Committee meeting to order at 9:10 a.m. MEMBERS PRESENT Representative Neal Foster, Co-Chair Representative Andy Josephson, Co-Chair Representative Calvin Schrage, Co-Chair Representative Jeremy Bynum Representative Alyse Galvin Representative Sara Hannan Representative Nellie Unangiq Jimmie Representative DeLena Johnson Representative Will Stapp Representative Frank Tomaszewski MEMBERS ABSENT Representative Jamie Allard ALSO PRESENT Representative Ted Eischeid, Sponsor; Meredith Trainor, Staff, Representative Ted Eischeid; Brodie Anderson, Staff, Representative Neal Foster; Senator Forrest Dunbar, Sponsor. PRESENT VIA TELECONFERENCE Andrew Kushner, Senior Policy Counsel, Center for Responsible Lending, Oakland, California; Trevor Storrs, President and CEO, Alaska Children's Trust, Anchorage; Claire Lubke, Economic Justice Lead, Alaska Public Interest Research Group, Anchorage. SUMMARY HB 90 FINANCIAL LITERACY PROGRAM IN SCHOOLS HB 90 was HEARD and HELD in committee for further consideration. CSSB 39(FIN) LOANS UNDER $25,000; PAYDAY LOANS CSSB 39 (FIN) was HEARD and HELD in committee for further consideration. Co-Chair Foster reviewed the meeting agenda. HOUSE BILL NO. 90 "An Act establishing a financial literacy education program for public schools; and providing for an effective date." 9:11:18 AM REPRESENTATIVE TED EISCHEID, SPONSOR, introduced himself. He introduced the PowerPoint presentation "House Bill 90: Financial Literacy Program in Schools" dated May 9, 2025 (copy on file). He explained slide 2, "WHAT IS FINANCIAL LITERACY": Understanding how much you earn and spend Responsibly managing and paying off debt Building assets to achieve personal goals Preparing for financial security later in life 9:14:58 AM Representative Eischeid continued to slide 3, "WHY DO WE NEED FINANCIAL LITERACY Only 1/3 of Americans can comfortably cover a $400 Emergency Average credit card debt in Alaska: $8,026 Average student loan debt in Alaska: $35,821 Alaska received an "F" grade in teaching financial literacy Representative Eischeid continued to slide 4, "House Bill 90": Grades 9-12 Adds a 0.5 credit in financial literacy Course should cover topics including Making a budget Avoiding fraud and financial deception Basic principles of retirement accounts Postsecondary financial aid and scholarships Representative Eischeid addressed slide 5, "LIST OF INCLUDED TOPICS": Different types of financial institutions and opening and managing an account with a financial institution; Making a budget; Basic principles of money management, including spending, credit, credit scores, and managing retail debt, credit card debt, and other types of debt; Basic principles of completing a loan application; 9:21:25 AM MEREDITH TRAINOR, STAFF, REPRESENTATIVE TED EISCHEID, read the sectional analysis (copy on file): Section 1. AS 14.30 relating to public schools, adds a new section a. Directing school districts to establish and provide a financial literacy education program, equivalent to a half credit, for students in grades nine through 12 that will be approved by the Department of Education& Early Development. And topics covered their-in. b. Creates an exemption to this graduation requirement for transfer students who cannot reasonable complete the course work. c. Provides definitions. Section 2. Provides an applicability date of January 1, 2027, for the first graduating class that will need to meet this requirement. Section 3. Provides an effective date for the bill of July 1, 2026. 9:22:32 AM Co-Chair Foster OPENED public testimony. Co-Chair Foster CLOSED public testimony. 9:23:15 AM BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER, reviewed the fiscal note. Representative Tomaszewski stressed that there was an economic class and many of the issues were covered in economics. Representative Eischeid responded that some districts did it. Representative Tomaszewski agreed. He asked if the program taught in Anchorage was developed and if it would be good enough to implement across the districts. Representative Eischeid responded that the bill proposed 15 topics. It allowed flexibility but also accountability and the development of options; professional collaboration created a fertile ground for developing good resources. He stated that there would be a rubric based on Alaska standards and apply it to financial literacy resources. He stressed that there was flexibility but they would need to cover the 15 topics 9:30:39 AM Representative Galvin appreciated the bill and asked if it was confirmed that there had been outcomes in other states when it had been implemented in those states. Representative Eischeid deferred to Ms. Trainor. Ms. Trainor stated that Minnesota had mandatory financial literacy course and they had the highest average credit score in the nation. Representative Galvin asked about page 2 of the bill, line 2, and she was curious about the timing and implementation. Representative Eischeid responded that in the bill, page 3, line 7 and 8, applied to students who would graduate after January 1, 2027. Representative Galvin it would give them one year to put together the coursework and ensure that every graduating student had taken the class. Representative Eischeid responded that it was seen as an opportunity to incorporate it into different classes, and he was open to adjusting the dates. Representative Galvin asked about adding an additional half credit hour, and felt that it could cause undo stress on teachers. Representative Eischeid responded that it was common for educators to integrate things into other curriculum, and it was part of the professional work of being a teacher. 9:37:46 AM Representative Galvin asked about the credit requirement. Representative Eischeid replied that the work would be equivalent to a half credit. 9:40:46 AM Representative Bynum had lots of questions and how course credits were dealt with, and asked about the fiscal note. Representative Eischeid responded that the fiscal note was generated by DEED. Representative Bynum wanted to see success in some form but did not want the fiscal note to be a barrier. HB 90 was HEARD and HELD in committee for further consideration. 9:45:53 AM CS FOR SENATE BILL NO. 39(FIN) "An Act relating to loans in an amount of $25,000 or less; relating to financial institutions; relating to the Nationwide Multistate Licensing System and Registry; relating to pawnbroker licensing exemptions; relating to deferred deposit advances; relating to computing interest; and providing for an effective date." 9:47:16 AM Co-Chair Foster OPENED public testimony. 9:47:50 AM ANDREW KUSHNER, SENIOR POLICY COUNSEL, CENTER FOR RESPONSIBLE LENDING, OAKLAND, CALIFORNIA (via teleconference), spoke in support of the legislation. 9:51:36 AM TREVOR STORRS, PRESIDENT AND CEO, ALASKA CHILDREN'S TRUST, ANCHORAGE (via teleconference), supported the bill. 9:53:45 AM CLAIRE LUBKE, ECONOMIC JUSTICE LEAD, ALASKA PUBLIC INTEREST RESEARCH GROUP, ANCHORAGE (via teleconference), spoke in support of the legislation. 9:57:04 AM Co-Chair Foster noted that they could take up the bill again at 1:30. He was going to keep public testimony open for now. SENATOR FORREST DUNBAR, SPONSOR, looked forward to returning later. CSSB 39 (FIN) was HEARD and HELD in committee for further consideration. ADJOURNMENT 9:58:22 AM The meeting was adjourned at 9:58 a.m.