04/17/2000 06:21 PM Senate FIN

COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 239(FIN)                                                                                
"An Act relating to the Uniform Commercial Code;                                                                                
relating to secured transactions; amending Rule 79,                                                                             
Alaska Rules of Civil Procedure; and providing for an                                                                           
effective date."                                                                                                                
                                                                                                                                
                                                                                                                                
This was the third hearing for this bill in the Senate                                                                          
Finance Committee. Co-Chair Torgerson noted earlier                                                                             
discussion about a letter from bond council expressing                                                                          
concerns on the impact this bill would have on outstanding                                                                      
and future revenue and bond issues, particularly relating                                                                       
to municipalities. [Copy on file.]                                                                                              
                                                                                                                                
REPRESENTATIVE LISA MURKOWSKI told the Committee she had                                                                        
recently spoken to experts on the matter and was not given                                                                      
a good reason to change the status quo, which is to provide                                                                     
an exemption for federal governments and governmental                                                                           
agencies. As a result of these conversations, she proposed                                                                      
an amendment that would provide the same exemptions. She                                                                        
believed this amendment addressed the concerns voiced by                                                                        
the bond council.                                                                                                               
                                                                                                                                
JERRY KURTZ testified via teleconference from Seattle that                                                                      
the problems have been taken care of with the proposed                                                                          
amendment.                                                                                                                      
                                                                                                                                
Amendment #1: This amendment makes the following changes to                                                                     
the committee substitute.                                                                                                       
                                                                                                                                
Page 14, lines 7 through 15:                                                                                                    
Delete:                                                                                                                         
 "(84) "public finance transaction" means a                                                                                     
secured transaction in connection with which                                                                                    
 (A) debt securities are issued;                                                                                                
 (B) all or a portion of the securities                                                                                         
issued have an initial stated maturity of at                                                                                    
least 20 years; and                                                                                                             
 (C) the debtor, obligor, secured party,                                                                                        
account debtor or other person obligated on                                                                                     
collateral, assignor or assignee of a secured                                                                                   
obligation, or assignor or assignee of a security                                                                               
interest is a state or a governmental unit of a                                                                                 
state;"                                                                                                                         
                                                                                                                                
Page 23, following line 8,                                                                                                      
Insert:                                                                                                                         
 "(14) not withstanding (c)(2) of this section,                                                                                 
does not apply to a transfer by a government or                                                                                 
governmental subdivision or agency"                                                                                             
                                                                                                                                
Page 82, line 13 and line 15:                                                                                                   
Delete: "public finance transaction or"                                                                                         
[Amended language reads as follows.]                                                                                            
                                                                                                                                
 "(b) Except as otherwise provided in (e) - (g) of                                                                              
this section, an initial financing statement filed in                                                                           
connection with a manufactured home transaction is                                                                              
effective for a period of 30 years after the date of                                                                            
filing if it indicates that is filed in connection                                                                              
with a manufactured home transaction."                                                                                          
                                                                                                                                
                                                                                                                                
Senator Donley moved for adoption.                                                                                              
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
Senator Leman offered a motion to report from Committee, CS                                                                     
HB 239 (FIN) with accompanying zero fiscal note from the                                                                        
Department of Natural Resources.                                                                                                
                                                                                                                                
Without objection the bill MOVED from Committee.                                                                                
                                                                                                                                
AT EASE 6:50 PM / 8:32 PM