HOUSE FINANCE COMMITTEE May 18, 2025 6:33 p.m. 6:33:21 PM CALL TO ORDER Co-Chair Foster called the House Finance Committee meeting to order at 6:33 p.m. MEMBERS PRESENT Representative Neal Foster, Co-Chair Representative Andy Josephson, Co-Chair Representative Calvin Schrage, Co-Chair Representative Jamie Allard Representative Jeremy Bynum Representative Alyse Galvin Representative Sara Hannan Representative Nellie Unangiq Jimmie Representative DeLena Johnson* Representative Will Stapp* Representative Frank Tomaszewski MEMBERS ABSENT None ALSO, PRESENT Brodie Anderson, Staff, Representative Neal Foster; Senator Forrest Dunbar, Sponsor; Representative Donna Mears, Sponsor; Nancy Meade, General Counsel, Alaska Court System; Talia Eames, Staff, Representative Donna Mears; PRESENT VIA TELECONFERENCE SUMMARY SB 39 LOANS UNDER $25,000; PAYDAY LOANS MOVED from committee SB 24 TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX SB 24 was SCHEDULED but not HEARD. SB 132 OMNIBUS INSURANCE BILL MOVED from committee HB 104 ADDRESS CONFIDENTIALITY PROGRAM Was HEARD and HELD Co-Chair Foster reviewed the meeting agenda. 6:34:39 PM CS FOR SENATE BILL NO. 132(FIN) "An Act relating to insurance; and providing for an effective date." 6:34:44 PM BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER, reviewed new FN, component 354, control code WFNjm, from the Department of Commerce, Community and Economic Development and dated May 17, 2025. He highlighted that the note reflected positive increase in the revenue line to $470.4. Co-Chair Schrage MOVED work draft HCS for CS for SB 132, 34-LS0415\W, Wallace, 5/17/25 from committee with individual recommendations and attached new fiscal note. There being NO OBJECTION, it was so ordered. SENATE BILL NO. 39 "An Act relating to loans in an amount of $25,000 or less; relating to the Nationwide Multistate Licensing System and Registry; relating to deferred deposit advances; and providing for an effective date." 6:37:09 PM SENATOR FORREST DUNBAR, SPONSOR, offered a brief overview of the bill. Co-Chair Foster noted that Representative Stapp had joined the meeting. Representative Bynum wondered why they state would choose to remove a free-market option for the public, i.e. Payday Loans. Representative Dunbar responded that there were additional products available. He referenced previous testimony that spoke to the financial harms from payday lenders. He believed the free-market products might be marketed more aggressively than Wells Fargo, and often ensnared borrowers in a cycle of debt. He was hopeful that there could be a market-based solution, meanwhile citizens should be protected. 6:41:36 PM Co-Chair Schrage MOVED CS for SB39(FIN), work draft 24- LS0357\I, Gunther, 4/3/25, from committee with individual recommendations and attached fiscal notes. Representative Stapp OBJECTED for the purpose of discussion. Representative Stapp WITHDREW the objection. There being no further objection, it was so ordered. CS FOR HOUSE BILL NO. 104(STA) "An Act creating and relating to the address confidentiality program; and providing for an effective date." 6:42:47 PM REPRESENTATIVE DONNA MEARS, SPONSOR, provided a sponsor statement: HB 104 creates an address confidentiality program for survivors of sexual assault and domestic violence, peace officers and correctional officers, and their families. There are many times an address must be provided in order to participate in society. This includes voting, working, sending children to school, and much more. Alaskans threatened with stalking or abuse, or retribution due to their roles in the justice system, are made unsafe when that address shows up in public records. HB 104 establishes a program whereby these at-risk individuals can receive mail at an anonymized PO box. Mail received by the state on behalf of enrollees will be forwarded to the participant's home address, which will remain confidential under penalty of law. Survivors and those who protect our state deserve the chance to live their lives fully, without fear of danger, and HB 104 gives those Alaskans a powerful tool to stay safe. Representative Galvin asked whether the fiscal note could be addressed. She wondered about the cost of implementation and execution of the program beyond abuse victims and to include members of the court and judges. Representative Mears responded that it was unknown how many people would take advantage of the program. She wanted to hear more about the population beyond the women who had been abused. She noted that the issue was not one of convenience. Representative Galvin about the population beyond those who had been abused. She felt that the cost of possible expansion was significant. Representative Mears responded that the bill did not currently include officers of the court. Representative Galvin noted that Nancy Meade was in the room and requested that she speak to the fiscal note. 6:48:44 PM NANCY MEADE, GENERAL COUNSEL, ALASKA COURT SYSTEM, reiterated that the courts and judges were not currently addressed in the bill. She thought that judges might take advantage if the protection were to become available. She recognized that the process of change of address was complicated. Representative Galvin asked whether she could speak to victims who had protective orders and whether the anonymized POINTED OUT box would be necessary in addition to a protective order. Ms. Meade responded that her understanding of protective orders was that they were issued once probable cause was established. She furthered that if the court issued it, there was an assurance that the person was a victim. Representative Bynum agreed that the intent of the bill was good, but the scope of the need seemed incongruous to the cost reflected on the fiscal note. He admitted he did not understand the scope of the problem. Ms. Meade responded that the courts were neutral on the legislation. 6:53:35 PM Representative Mears responded that address forwarding was a small component of the bill. She thought that the number of people who would use the program would be minimal. She believed that the people using the program would fluctuate with need. Representative Jimmie cited page 3, lines 25-27: (i) A person who discloses information that is confidential under this section about an individual enrolled in the program under (c) of this section is guilty of a class B misdemeanor if the person Representative Jimmie asked whether a person who accidentally shared the address of a person protected under the program would be charged with a crime. TALIA EAMES, STAFF, REPRESENTATIVE DONNA MEARS, responded that a priority of the bill was security. She shared that the bill had been modeled after a similar program in the state of Montana because of the similarity in population size and density. She relayed that only two people ran the Montana program and had access to records. She stressed that it was a serious program, and each person was paid partially for the person to run it in addition to their full-time job. She related that the program cost Montana $22,000 per year, paying two people, part-time. She said that the database was run through a lockable Excel spreadsheet. Representative Jimmie asked whether it would impact family members or friends. Ms. Eames responded that the Class B misdemeanor would apply to only those people who were running the program. 6:58:09 PM Representative Galvin restated her concern with the fiscal note. She requested that DOA speak to the committee about the note. Representative Foster said that no one from the administration was available online. Representative Hannan said that she had asked a representative from the administration about the increased fiscal note. She had been told that the increase reflected the possibility of everyone who was eligible for the program enrolling in the program and the level of support that would be necessary to provide services to all those people. She thought that the department had overinflated the numbers. Representative Galvin asked why two full time positions were needed and noted that the Montana program had not required two full-time positions. Ms. Eames responded that they did not ask the question, but the state of Washington had the first program, and the most recent numbers were from 2021. Using those numbers and incorporating the police force of the state resulted in 2,000 possible additional enrollees. She noted that the program was a last resort to protect victims and would not be entered into lightly. She did not see the numbers of enrollees being as high as was reflected in the note and thought that the cost would be lower. 7:04:28 PM Representative Galvin thought that for those who needed it, the bill was necessary. She held that the fiscal note was too high, but she said she supported the program. Representative Tomaszewski queried the flow of mail under the program. Ms. Eames responded that there were regulations that needed to be promulgated on the intentions, but the plan was to deliver first-class mail. Representative Tomaszewski noted the limit of 5 pieces of mail a month seemed low. He asked where the rest of the person's mail would go. Representative Mears responded that the mail that would generate a public record was mail that would get forwarded, such as mail from a public school. Personal mail would go directly to the recipient. Representative Tomaszewski noted the cost in the fiscal note for an ID card maker. He asked whether the state did not already have an ID card maker. Representative Mears replied that she could not speak to that detail of the fiscal note. Representative Bynum appreciated the program. He cited page 2, line 11, which established and administered the program. he spoke to the addition of police officers and the new section on page 4. He was unsure how much authority the law would give the person to use the mail forwarding address. 7:11:10 PM Representative Mears responded that page 3, line 12 offered that "a state or municipal agency shall allow an individual enrolled in the program to use the post office box designed by the department as an individual's mailing address." Representative Bynum countered that the section said that the box had to be designated by the department. He understood that the section allowed that the PO box could be used in lieu of their true and real address. Representative Mears understood that the section of the bill referred to someone using the PO box instead of a real and true address. She said that the ID cards would be proof that the people were enrolled in the program and allow for them to use the PO box to receive mail. Co-Chair Foster set an amendment deadline for the following day by 5pm. HB 104 was HEARD and HELD in committee for further consideration. Co-Chair Foster discussed housekeeping. ADJOURNMENT 7:15:28 PM The meeting was adjourned at 7:15 p.m.