Legislature(1993 - 1994)

03/03/1994 08:00 AM House STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
             HOUSE STATE AFFAIRS STANDING COMMITTEE                            
                          March 3, 1994                                        
                            8:00 a.m.                                          
  MEMBERS PRESENT                                                              
  Representative Al Vezey, Chairman                                            
  Representative Pete Kott, Vice Chairman                                      
  Representative Gary Davis                                                    
  Representative Harley Olberg                                                 
  Representative Jerry Sanders                                                 
  MEMBERS ABSENT                                                               
  Representative Bettye Davis                                                  
  Representative Fran Ulmer                                                    
  COMMITTEE CALENDAR                                                           
  HB 378:   "An Act relating to the Older Alaskans                             
             Commission and staff of the commission;                           
             changing the name of the Older Alaskans                           
             Commission to the Alaska Commission on Aging                      
             and extending the termination date of the                         
             commission; relating to the Alaska Pioneers'                      
             Homes Advisory Board; relating to services                        
             and programs for older Alaskans; and providing                    
             for an effective date."                                           
             PASSED OUT OF COMMITTEE                                           
  HB 392:   "An Act relating to the confidentiality of                         
             permanent fund dividend application information;                  
             relating to the permanent fund dividend program;                  
             and providing for an effective date."                             
  *HB 400:  "An Act relating to administrative proceedings                     
             involving a determination of eligibility for a                    
             permanent fund dividend or authority to claim                     
             a dividend on behalf of another."                                 
             PASSED OUT OF COMMITTEE                                           
  *HB 408:  "An Act setting a maximum rate of interest that                    
             may be charged on a loan guaranteed by the                        
             Alaska Industrial Development and Export                          
             Authority under its export assistance program;                    
             and annulling a portion of a current regulation                   
             of the Alaska Industrial Development and Export                   
             Authority that establishes the maximum allowable                  
             interest on a guaranteed loan to be computed at                   
             a different rate."                                                
             HELD OVER                                                         
   *HB 358: "An Act allowing a mobile home owner to request                    
             a certificate of title from the Department of                     
             Public Safety."                                                   
             HELD OVER                                                         
    SB 128  "An Act relating to legislative audits."                           
             HELD OVER                                                         
  WITNESS REGISTER                                                             
  REPRESENTATIVE JOE GREEN                                                     
  Alaska State Legislature                                                     
  Alaska State Capitol, Room 114                                               
  Juneau, AK  99811                                                            
  Phone:  465-4931                                                             
  POSITION STATEMENT:  Sponsor of HB 400 and HB 408                            
  MELINDA GREENING, Staff                                                      
  Representative Joe Green                                                     
  Alaska State Capitol, Room 114                                               
  Juneau, AK  99811                                                            
  Phone:  465-4931                                                             
  POSITION STATEMENT:  Gave overview of HB 400                                 
  JOHN DELANO, Deputy Director of Credit                                       
  Alaska Industrial Development and Export Authority                           
  480 W. Tudor                                                                 
  Anchorage, AK  99503                                                         
  Phone:  561-8050                                                             
  POSITION STATEMENT:  Answered questions on HB 408                            
  PATRICK LOUNSBURY, Staff                                                     
  Representative Brian Porter                                                  
  Alaska State Capitol, Room 122                                               
  Juneau, AK  99811                                                            
  Phone:  465-4930                                                             
  POSITION STATEMENT:  Gave the sponsor statement for HB 358                   
  TRACI WALKER, Manager                                                        
  Thunder Mountain Mobile Home Park                                            
  8479 Thunder Mountain Rd.                                                    
  Juneau, AK  99801                                                            
  Phone:  789-7555                                                             
  POSITION STATEMENT:  Testified in favor of HB 358                            
  KATE CAMPBELL, Resident                                                      
  Churchill Way Mobile Home Park                                               
  5905 Churchill Way #54                                                       
  Juneau, AK  99801                                                            
  Phone:  780-4298                                                             
  POSITION STATEMENT:  Testified in favor of HB 358                            
  JUANITA HENSLEY, Chief, Drivers Services                                     
  Division of Motor Vehicles                                                   
  Department of Public Safety                                                  
  P.O. Box 20020                                                               
  Juneau, AK  99802                                                            
  Phone:  465-2650                                                             
  POSITION STATEMENT:  Answered questions on HB 358                            
  RICHARD VITALE, Staff                                                        
  Representative Sean Parnell                                                  
  Alaska State Capitol, Room 513                                               
  Juneau, AK  99811                                                            
  Phone:  465-2995                                                             
  POSITION STATEMENT:  Answered questions on HB 392                            
  PREVIOUS ACTION                                                              
  BILL:  HB 378                                                                
  SHORT TITLE: REVISE OLDER ALASKANS COMMISSION                                
  SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR                                 
  JRN-DATE     JRN-PG               ACTION                                     
  01/14/94      2072    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/14/94      2072    (H)   STATE AFFAIRS, HES, FINANCE                      
  01/14/94      2072    (H)   -ZERO FISCAL NOTE (ADM) 1/14/94                  
  01/14/94      2073    (H)   GOVERNOR'S TRANSMITTAL LETTER                    
  02/24/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  02/24/94              (H)   MINUTE(STA)                                      
  BILL:  HB 392                                                                
  SHORT TITLE: PERMANENT FUND DIVIDEND PROGRAM                                 
  SPONSOR(S): REPRESENTATIVE(S) PARNELL                                        
  JRN-DATE     JRN-PG               ACTION                                     
  01/21/94      2125    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/21/94      2125    (H)   STATE AFFIARS,JUDICIARY,FINANCE                  
  02/22/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  02/22/94              (H)   MINUTE(STA)                                      
  03/03/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  BILL:  HB 400                                                                
  SHORT TITLE: PFD ADMINISTRATIVE PROCEEDINGS                                  
  SPONSOR(S): REPRESENTATIVE(S) GREEN                                          
  JRN-DATE     JRN-PG               ACTION                                     
  01/26/94      2154    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/26/94      2154    (H)   STATE AFFAIRS, FINANCE                           
  03/03/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  BILL:  HB 408                                                                
  SPONSOR(S): REPRESENTATIVE(S) GREEN                                          
  JRN-DATE     JRN-PG               ACTION                                     
  01/27/94      2166    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/27/94      2166    (H)   STATE AFFAIRS, FINANCE                           
  03/03/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  BILL:  HB 358                                                                
  SHORT TITLE: MOBILE HOME CERTIFICATES OF TITLE                               
  SPONSOR(S): REPRESENTATIVE(S) PORTER,Mulder                                  
  JRN-DATE     JRN-PG               ACTION                                     
  01/10/94      2021    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/10/94      2022    (H)   STATE AFFAIRS, FINANCE                           
  03/03/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  BILL:  SB 128          SHORT TITLE: LEGISLATIVE AUDITS                       
  JRN-DATE     JRN-PG               ACTION                                     
  02/22/93       440    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  02/22/93       440    (S)   STATE AFFAIRS, FINANCE                           
  03/10/93              (S)   STA AT 9:00 AM BUTRVICH RM 205                   
  03/10/93              (S)   MINUTE(STA)                                      
  03/17/93              (S)   STA AT 9:00 AM BUTRVICH RM 205                   
  03/17/93              (S)   MINUTE(STA)                                      
  03/18/93       845    (S)   STA RPT CS 1DP 3NR SAME TITLE                    
  03/18/93       846    (S)   ZERO FISCAL NOTE TO SB & CS                      
  04/12/93              (S)   FIN AT 9:00 AM SENATE FIN 518                    
  04/12/93              (S)   MINUTE(FIN)                                      
  04/14/93      1353    (S)   FIN RPT    6DP 1NR (STA)CS                       
  04/14/93      1354    (S)   PREVIOUS ZERO FN (S.STA/GOV)                     
  04/14/93      1353    (S)   LETTER OF INTENT W/ FIN REPORT                   
  04/13/93              (S)   MINUTE(FIN)                                      
  04/14/93              (S)   FIN AT 8:30 AM SENATE FIN 518                    
  04/14/93              (S)   MINUTE(FIN)                                      
  04/14/93              (S)   MINUTE(RLS)                                      
  04/17/93              (S)   MINUTE(SSA)                                      
  04/23/93      1693    (S)   RULES 3 CAL 1NR    4/23/93                       
  04/23/93      1694    (S)   READ THE SECOND TIME                             
  04/23/93      1694    (S)   STA  CS ADOPTED UNAN CONSENT                     
  04/23/93      1695    (S)   ADVANCE TO THIRD READING                         
                              FAILED Y12 N8                                    
  04/23/93      1695    (S)   THIRD READING 4/24  CALENDAR                     
  04/24/93      1741    (S)   READ THE THIRD TIME                              
                              CSSB 128(STA)                                    
  04/24/93      1741    (S)   (S) ADOPTED FIN LETTER OF                        
  04/24/93      1741    (S)   PASSED Y20 N-                                    
  04/24/93      1746    (S)   TRANSMITTED TO (H)                               
  04/27/93      1552    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  04/27/93      1552    (H)   STATE AFFAIRS, FINANCE                           
  01/29/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  01/29/94              (H)   MINUTE(STA)                                      
  02/15/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  02/15/94              (H)   MINUTE(STA)                                      
  03/01/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  03/01/94              (H)   MINUTE(STA)                                      
  ACTION NARRATIVE                                                             
  TAPE 94-20, SIDE A                                                           
  Number 000                                                                   
  HB 378 - REVISE OLDER ALASKANS COMMISSION                                    
  CHAIRMAN AL VEZEY called the meeting to order at 8:03 a.m.                   
  Members present were REPRESENTATIVES KOTT, SANDERS, G.                       
  DAVIS, and OLBERG.  Under bills previously heard, CHAIRMAN                   
  VEZEY opened HB 378 for discussion.  He stated the committee                 
  should have before them a copy of the latest committee                       
  substitute.  The committee had adopted in a previous                         
  meeting, REPRESENTATIVE G. DAVIS's amendment, which would                    
  change the person who would chair the committee from being                   
  appointed by the Governor, to being elected by the                           
  committee.  CHAIRMAN VEZEY asked the committee for their                     
  opinion of the editing by the statute writer on page 2, line                 
  25, where the word "chairman" has been changed to "chair",                   
  and on page 2, line 31, the word "chairperson" has been                      
  changed to "chair."                                                          
  REPRESENTATIVE GARY DAVIS replied he was neutral about the                   
  CHAIRMAN VEZEY expressed that he did not care for the                        
  terminology.  He asked the committee's pleasure.                             
  (REPRESENTATIVE SANDERS left the meeting at 8:05 a.m.)                       
  Number 060                                                                   
  REPRESENTATIVE HARLEY OLBERG stated the bill would be heard                  
  again in HESS and should be passed on.                                       
  Number 072                                                                   
  REPRESENTATIVE G. DAVIS moved CSHB 378 be passed from                        
  committee with the fiscal notes attached.                                    
  Number 085                                                                   
  CHAIRMAN VEZEY recognized the motion, the committee                          
  secretary called the roll, and CSHB 378 passed from the                      
  House State Affairs Committee.                                               
  HB 392 - PERMANENT FUND DIVIDEND PROGRAM                                     
  CHAIRMAN VEZEY opened HB 392 for discussion.  A new                          
  committee substitute is being prepared, however, it is not                   
  yet completed.                                                               
  CHAIRMAN VEZEY said the committee did have a Version O of                    
  the committee substitute dated 2/24/94, before them, which                   
  incorporated the change from a previous hearing on page 5,                   
  line 7.  The committee substitute adds the bright-line                       
  distinction that an individual is not eligible for a                         
  dividend and each of the five dividends preceding that                       
  dividend, if the individual is absent for more than 180 days                 
  during the qualifying period.  He clarified an individual                    
  could only have an excused absence for five years.  After                    
  that time, the dividend would be denied, except for medical                  
  reasons as outlined in lines 10-13.                                          
  CHAIRMAN VEZEY stated another discussed amendment from the                   
  previous hearing, however not adopted, was placed into the                   
  committee substitute on page 4, line 11.  He felt Version O                  
  of the committee substitute dated 2/24/94, should not be                     
  adopted by the committee, but the committee should vote to                   
  adopt the wording found on page 5, lines 7-13, of Version O,                 
  of the committee substitute, dated 2/24/94.                                  
  REPRESENTATIVE G. DAVIS asked if the change was under                        
  allowable absences.                                                          
  Number 145                                                                   
  CHAIRMAN VEZEY responded the change was under allowable                      
  absences, drawing a bright-line at five years, unless out of                 
  the state for medical reasons.                                               
  Number 147                                                                   
  REPRESENTATIVE G. DAVIS asked if it meant five consecutive                   
  Number 148                                                                   
  CHAIRMAN VEZEY confirmed REPRESENTATIVE G. DAVIS.  He                        
  believed the committee was in favor of a bright-line                         
  distinction at the last hearing.                                             
  Number 156                                                                   
  REPRESENTATIVE G. DAVIS felt five years may be too long.  He                 
  would prefer to "ratchet down" as many allowable absences as                 
  Number 171                                                                   
  REPRESENTATIVE OLBERG gave an example of a career military                   
  pilot in his district who has no intention of relinquishing                  
  his Alaskan residency, but may spend most of 20 years                        
  outside of Alaska.  He periodically comes back to visit                      
  CHAIRMAN VEZEY responded, the change states, in essence, if                  
  a person is out of the state for five years, they are not                    
  eligible for a dividend.  Currently, if a person is absent                   
  for 180 days a year or more than five years, they are                        
  considerably scrutinized by the Permanent Fund Dividend                      
  (PFD) Division.                                                              
  Number 191                                                                   
  REPRESENTATIVE OLBERG stated number 6, serving on active                     
  duty as a member of the Armed Forces of the United States,                   
  is an allowable absence.  His constituent, however, is                       
  having difficulty getting his dividend.                                      
  REPRESENTATIVE G. DAVIS clarified that REPRESENTATIVE                        
  OLBERG's constituent was active.                                             
  Number 197                                                                   
  CHAIRMAN VEZEY believed REPRESENTATIVE OLBERG's constituent                  
  would have received a dividend under subparagraph 6 of                       
  section 5, "serving on active duty as a member of the armed                  
  forces," but he has probably been out of the state for five                  
  years.  The PFD gives considerable scrutiny to those                         
  persons.  The intent of the change is to merely codify a                     
  bright-line at five years, there is no administrative                        
  judgment involved.                                                           
  REPRESENTATIVE OLBERG did not have a problem with the                        
  CHAIRMAN VEZEY stated the new committee substitute would be                  
  drafted and he would expect the committee to adopt it and                    
  pass it out.                                                                 
  HB 378 - REVISE OLDER ALASKANS COMMISSION                                    
  CHAIRMAN VEZEY explained the committee substitute for HB
  378, just passed out of committee had not been formally                      
  adopted, therefore, he reopened HB 378.                                      
  Number 227                                                                   
  REPRESENTATIVE PETE KOTT moved the committee rescind their                   
  action on CSHB 378 for the purpose of adopting the committee                 
  CHAIRMAN VEZEY clarified the proper order would not be to                    
  rescind, but to reconsider.  Understanding REPRESENTATIVE                    
  KOTT's intent, the motion was recognized and hearing no                      
  objection the CSHB 378 was adopted.                                          
  CHAIRMAN VEZEY asked if REPRESENTATIVE KOTT would like to                    
  move to pass CSHB 378 from the House State Affairs                           
  Number 236                                                                   
  REPRESENTATIVE KOTT so moved.                                                
  Number 238                                                                   
  CHAIRMAN VEZEY recognized the motion, the committee                          
  secretary called the roll, and CSHB 378 passed from the                      
  House State Affairs Committee.                                               
  HB 392 - PERMANENT FUND DIVIDEND PROGRAM                                     
  CHAIRMAN VEZEY announced HB 392 would be readdressed at a                    
  later date.                                                                  
  HB 400 - PFD ADMINISTRATIVE PROCEEDINGS                                      
  CHAIRMAN VEZEY opened discussion on HB 400 and introduced                    
  REPRESENTATIVE JOE GREEN.                                                    
  Number 257                                                                   
  REPRESENTATIVE JOE GREEN, sponsor of HB 400, stated MELINDA                  
  GREENING from his staff, was available to present HB 400 to                  
  the committee.                                                               
  Number 260                                                                   
  an overview of HB 400.  She said HB 400 was prepared because                 
  of complaints received from constituents regarding the                       
  length of time to process PFD appeals.  REPRESENTATIVE GREEN                 
  felt the length of time some of his constituents have had to                 
  wait in the appeals process was unacceptable.  The length of                 
  time to process appeals is directly related to the high                      
  number of appeals received.  She stated, HB 400 addresses                    
  the huge number of appeals filed.  As of January 1, 1994,                    
  there were 9,579 appeals pending, the highest number since                   
  the PFD program's inception.  She knew of one District 10                    
  resident who has waited 18 months and others may have waited                 
  longer.  Currently there are ten permanent full-time                         
  employees in the PFD Division and three appeals officers, in                 
  the commissioners' office, who are working on processing the                 
  appeals.  Because there is no cost to appeal, other than .29                 
  cents for a stamp, people who are clearly unqualified                        
  protest their denials because they have the opportunity to                   
  do so at no cost or risk to themselves.  The 1994 denial                     
  rate was 64 percent, lower than in previous years.                           
  MS. GREENING said HB 400 would implement a $25 filing fee                    
  for individuals protesting the denial of their permanent                     
  fund appeal application.  The fee would be refundable if the                 
  appeal is successful, and nonrefundable if the denial is not                 
  overturned.  She said it is anticipated the implementation                   
  of a filing fee would discourage individuals clearly                         
  unqualified from appealing, thereby reducing costs, which                    
  are deducted from the amount of the dividend, and making the                 
  appeal process shorter for those with legitimate claims.                     
  Since the administrative costs are deducted out of each                      
  recipients PFD check, the reduced cost would mean a larger                   
  check for each eligible Alaskan.                                             
  Number 314                                                                   
  CHAIRMAN VEZEY heard no questions and asked the pleasure of                  
  the committee.                                                               
  Number 317                                                                   
  REPRESENTATIVE G. DAVIS moved to pass HB 400 from committee                  
  with individual recommendations.                                             
  Number 319                                                                   
  CHAIRMAN VEZEY recognized the motion, the secretary called                   
  the roll, and HB 400 passed from the House State Affairs                     
  Committee with individual recommendations.                                   
  HB 408 - AIDEA EXPORT ASSISTANCE PROGRAM LOANS                               
  CHAIRMAN VEZEY opened discussion on HB 408.                                  
  Number 330                                                                   
  REPRESENTATIVE GREEN, sponsor of HB 408, gave a sponsor                      
  statement.  He said, Chapter 42, SLA 1987, provided for the                  
  Alaska Industrial Development Authority to add an Export                     
  Financing Guarantee program to its' portfolio, and change                    
  the name, at that time, to the Alaska Industrial Development                 
  and Export Authority (AIDEA).  Six years later, AIDEA has                    
  yet to guarantee an export transaction with this program.                    
  REPRESENTATIVE GREEN stated HB 408 is an attempt to make the                 
  export program work.  The problem is that current AIDEA                      
  regulations impose a ceiling on the interest commercial                      
  lenders may charge when participating in this program.  The                  
  lesser of the rate charge, under the promissory note, of one                 
  percent above the U.S. Treasury Note rate, at 3.5 percent,                   
  means commercial banks could charge no more than about 4.5                   
  percent interest on a loan.  This restriction effectively                    
  kills the program because no commercial lender would lend                    
  money at 4.5 percent.                                                        
  REPRESENTATIVE GREEN said, somewhat similar to the export                    
  assistance program, AIDEA also has a business assistance                     
  program.  The interest rate for banks is this program is in                  
  the same statute, however, it is substantially higher                        
  allowing lenders to charge 2.75 percent above the prime                      
  rate.  At the current prime rate of six percent, a                           
  commercial bank could charge as much as 8.75 percent                         
  interest.  The Federal Small Business Administration (SBA)                   
  program also allows this interest to go to 2.75 percent                      
  above the prime rate.                                                        
  REPRESENTATIVE GREEN stated that HB 408 establishes the same                 
  interest rate for the export program, as exists for the                      
  business assistance program.  The export program will become                 
  more attractive to commercial lenders.  He noted the export                  
  assistance program is a loan guarantee, not a state loan.  A                 
  potential exporter could go to a commercial bank, and if                     
  they qualify, get a commercial loan at any time, but if the                  
  exporter seems at all risky, the bank could use this program                 
  to reduce that risk.  AIDEA would assume that risk, because                  
  it has a mechanism to reinsure itself which would reduce its                 
  REPRESENTATIVE GREEN stated managers at AIDEA recognize the                  
  export program is not working and they have begun to work                    
  with banks and the Department of Commerce to fix it.  It is                  
  his opinion that between these statutory changes and some                    
  changes in AIDEA's regulations, banks might be willing to                    
  use this program and that would be an important tool for                     
  small businesses.  REPRESENTATIVE GREEN stated he was                        
  serious about fixing the problems and if it could not be                     
  done in the regulations, he would try to introduce something                 
  to fix it through statute.                                                   
  Number 389                                                                   
  CHAIRMAN VEZEY asked which program under AIDEA is limited to                 
  one percent over the six month treasury note.                                
  REPRESENTATIVE GREEN replied the export program.  He                         
  understood the oddity of trying to help a program by                         
  increasing its ability to charge more interest.  He                          
  clarified the problem to be small export potentials, which                   
  there are many in Alaska, need to be financed.                               
  Number  402                                                                  
  CHAIRMAN VEZEY stated AIDEA is providing the guarantee, not                  
  the loan.                                                                    
  REPRESENTATIVE GREEN agreed.  He gave an example of a man                    
  named Jones, who may not have a good enough idea for a very                  
  restrictive bank, but it may pass the AIDEA test.  AIDEA                     
  would guarantee him.  If Jones were to then go under, he                     
  clarified, AIDEA would not exactly have to pick up the tab,                  
  because AIDEA reinsures itself with a .5 percent charge                      
  which the applicant pays.  If Jones had gotten 8.75 percent,                 
  the loan he would have actually been paying would have been                  
  at 9 percent, therefore, 25.25 percent would be a                            
  reinsurance program that AIDEA would not get stuck with the                  
  bill.  AIDEA acts as an intermediary.                                        
  Number 415                                                                   
  CHAIRMAN VEZEY did not believe the legislature had the                       
  foresight in 1987 to see the short-term interest rates drop                  
  so dramatically below the long-term rates.  He was concerned                 
  that if the number of loan guarantees was increased the                      
  reserves for loan losses would have to be increased,                         
  requiring a fiscal note.                                                     
  REPRESENTATIVE GREEN responded the AIDEA program does not                    
  put up the money, the bank does.  If AIDEA is held as a                      
  default, they would look to their reinsurer to pay the                       
  CHAIRMAN VEZEY asked if AIDEA buys loan insurance.                           
  REPRESENTATIVE GREEN confirmed.                                              
  REPRESENTATIVE G. DAVIS questioned if the insurance was                      
  bought from another state agency.                                            
  Number 437                                                                   
  REPRESENTATIVE GREEN said no, it was more like a "LLoyd's of                 
  London type of thing."                                                       
  Number 438                                                                   
  CHAIRMAN VEZEY thought AIDEA would use their investments to                  
  secure loans.                                                                
  REPRESENTATIVE GREEN said no, that way state capital is not                  
  tied up.                                                                     
  Number 440                                                                   
  CHAIRMAN VEZEY commented that if activity is anticipated to                  
  increase, increased insurance premiums for loan insurance                    
  should be expected.                                                          
  Number 442                                                                   
  REPRESENTATIVE GREEN said an increase in premiums was                        
  possible.  He speculated, if there were a specific number of                 
  loans at a quarter of a percent, and the insurance carriers                  
  felt AIDEA was getting too much exposure, and they wanted to                 
  raise to a half a percent, there would be some loans with a                  
  quarter override and some that are higher interest override.                 
  This would be paid by the borrower.  HB 408 would bring both                 
  the export program and the small business program to equal                   
  CHAIRMAN VEZEY clarified HB 408 would annul the one percent                  
  above the treasury note in code, not in statute.  3 AAC                      
  99.650 would be annulled.                                                    
  CHAIRMAN VEZEY moved to the Anchorage teleconference site.                   
  Number 467                                                                   
  JOHN DELANO, DEPUTY DIRECTOR OF CREDIT, AIDEA, commented and                 
  answered questions on HB 408.  He felt the problems which HB
  408 addresses could be taken care of through regulations.                    
  The interest rate is only established by regulation.  AIDEA                  
  does not have the legislative history or the corporate                       
  memory because those involved in suing the regulations are                   
  no longer with the authority.  There have been attempts by                   
  several staff members of AIDEA to meet with banks, OIT, and                  
  other interested parties to make the export program more                     
  attractive.  AIDEA would not have a problem changing the                     
  interest rate through regulation.                                            
  Number 484                                                                   
  CHAIRMAN VEZEY could not see banks wanting to loan at 4.5                    
  percent, even if they could get money from the Federal                       
  Reserve banks for 2.5 percent.  He believed the low interest                 
  rate had been in effect for at least three years.                            
  MR. DELANO replied, "at least."                                              
  CHAIRMAN VEZEY thought it was a regulatory interest rate and                 
  [we] seem a little a slow to react to the market.                            
  Number 495                                                                   
  MR. DELANO responded the interest rate discussed would be                    
  the interest rate AIDEA would pay off in the event they have                 
  to honor the guarantee, in the event of default by the                       
  borrower.  He clarified the bank can charge any rate they                    
  choose.  The index in 1987 was probably substantially                        
  higher, twice as high as it is currently, when the                           
  regulation was made.                                                         
  Number 505                                                                   
  REPRESENTATIVE GREEN inquired, if that were the case                         
  wouldn't there still be a restriction or difficulty for a                    
  borrower if they went to a bank, and the bank may have                       
  reservations that AIDEA is not supporting them for the full                  
  amount they want to commit their money to.                                   
  Number 510                                                                   
  MR. DELANO stated this scenario was very possible. That's                    
  why AIDEA has absolutely no objection to increasing the rate                 
  to be commensurate with the same rate charged in the                         
  business assistance program, prime plus 2.75.  He felt this                  
  may comfort banks so in the event of default, they may know                  
  the amount of interest they would collect on the defaulted                   
  amount of money.                                                             
  Number 515                                                                   
  CHAIRMAN VEZEY clarified 3 AAC 99.650 sets the interest                      
  rates for the loan guarantee and not the loan.                               
  MR. DELANO confirmed that was correct.                                       
  Number 520                                                                   
  CHAIRMAN VEZEY asked what the response is from the                           
  commercial lending institutions to 3 AAC 99.650.                             
  MR. DELANO replied the concern of banks was they wanted to                   
  know the interest rate AIDEA will pay them in the event the                  
  guarantee would have to be honored.  They felt the interest                  
  rate should be raised.  AIDEA did not have objections to                     
  this.  He stated the underwriting by both the bank and AIDEA                 
  is generally conservative enough that AIDEA does not view a                  
  lot of risk in the guarantees.  The moneys guaranteed are                    
  contingent liabilities of the AIDEA and under the business                   
  assistance program, for example, AIDEA has only had to pay                   
  off one guarantee since the program was instituted.  They                    
  paid off about 25 percent of the total guaranteed amount.                    
  Number  540                                                                  
  REPRESENTATIVE GREEN clarified one loan defaulted under the                  
  business assistance program and asked how many loans had                     
  been granted.                                                                
  Number 543                                                                   
  MR. DELANO answered there are currently 14 or 15 on the                      
  books, however, the total amount of outstanding guarantees                   
  is just short of $1 million.  The export program had not                     
  been utilized because it is similar to the U.S. Small                        
  Business Administration, a federal guarantee, which is more                  
  liberal and banks have used it since the late 1940s.                         
  AIDEA's export program is more attractive than the federal                   
  program for financing inventory and accounts receivable                      
  because of greater limits, $1 million versus $750,000.                       
  Number 553                                                                   
  REPRESENTATIVE GREEN commented there are some 15 loans under                 
  that program and zero under the export program, and asked if                 
  that was because of the difference in the types of people or                 
  businesses that would be involved or because they are more                   
  apt to get loans from banks with a higher guarantee from                     
  Number 560                                                                   
  MR. DELANO responded he thought the export program was                       
  partially not used because AIDEA does not know if the                        
  participant volume exists in this area.  Several people have                 
  come in with interest in this area, but in talking to them,                  
  their needs tend to fit the business assistance program.                     
  Number 575                                                                   
  REPRESENTATIVE GREEN reiterated AIDEA has no objection to                    
  modifying the interest rate in regulation.  He then asked if                 
  [we] could be assured that if HB 400 was not pursued, it                     
  would be done in regulations.                                                
  Number 580                                                                   
  MR. DELANO said yes, AIDEA could do it.                                      
  Number 581                                                                   
  REPRESENTATIVE GREEN suggested HB 408 be pulled off the                      
  table with that assurance.  In an effort to make the change                  
  more proactive, rather than negative, he offered that page                   
  1, line 7, the (b) portion of the existing regulations which                 
  now read, "the authority may not guarantee a loan unless the                 
  authority finds that the guarantee is reasonably necessary,"                 
  should be modified to read, "that the authority may                          
  guarantee a loan if the authority finds that the guarantee                   
  is reasonably necessary."  The thrust would change to more                   
  positive wording.                                                            
  Number 597                                                                   
  REPRESENTATIVE G. DAVIS asked MR. DELANO about the previous                  
  loan being considered under the export authority, that was                   
  later found to fit better under the business assistance                      
  program.  He could not imagine an export loan that would not                 
  fit under the business assistance program and asked if this                  
  was why the export program had not been used.                                
  Number 605                                                                   
  MR. DELANO responded long-term contracts and revolving                       
  credit can fall under business assistance, and he believed                   
  the statutes and regulations were written more with the                      
  intent of specific transactions.  AIDEA felt continuing                      
  relationships are served better under the business                           
  assistance program because guarantees can be issued for one                  
  year, and they can get renewals for four additional years.                   
  Number 626                                                                   
  REPRESENTATIVE GREEN asked if AIDEA can handle the exporters                 
  through regulation and still get loan requests through small                 
  business, is there a need for the export authority.  He                      
  asked if there were people working in this category.                         
  Number 629                                                                   
  MR. DELANO replied no one is specifically working in the                     
  export area, but several AIDEA employees are familiar with                   
  the program and are trying to work with it.  If there was a                  
  request to have a designated employee for the program, one                   
  of three officers who does underwriting for the authority                    
  would be chosen.  He stated the need for the export                          
  authority had been deliberated over and because of its lack                  
  of use and misunderstanding of intent, AIDEA would like to                   
  amend the program to be usable or dispense of it and the                     
  financing will be taken care of under business assistance.                   
  Number 641                                                                   
  REPRESENTATIVE GREEN asked if AIDEA would take care of the                   
  export program in the reasonable future.                                     
  (REPRESENTATIVE OLBERG left the meeting at 8:42 a.m.)                        
  Number 645                                                                   
  MR. DELANO answered AIDEA is prepared to make the regulation                 
  changes and it should not take too long.  They have no                       
  objection to making the changes, however, they are not so                    
  sure it will induce the banks to make presentations to them.                 
  He suggested AIDEA talk to the banks and find out what will                  
  make the export program attractive to them.  Depending upon                  
  the response of the banks, AIDEA could report back the                       
  options of whether the program will be changed or dispensed                  
  Number 661                                                                   
  REPRESENTATIVE GREEN asked if there was currently a director                 
  of AIDEA.                                                                    
  Number 662                                                                   
  MR. DELANO answered the executive director is Riley Snell.                   
  (REPRESENTATIVE OLBERG returned to the meeting at 8:45 a.m.)                 
  Number 663                                                                   
  REPRESENTATIVE GREEN asked if the executive director would                   
  then refocus his attentions to other duties and AIDEA would                  
  not have personnel involved with the export program that                     
  would no longer be needed.                                                   
  Number 664                                                                   
  MR. DELANO responded there would not be unnecessary                          
  personnel and their workload would not be impacted unless                    
  the program was kept.                                                        
  Number 665                                                                   
  REPRESENTATIVE GREEN suggested HB 408 be held until he could                 
  receive further information from AIDEA and he would                          
  readdress the committee at a later date.                                     
  Number 675                                                                   
  CHAIRMAN VEZEY accepted REPRESENTATIVE GREEN's suggestion                    
  and held HB 408 in the House State Affairs Committee for                     
  further study.                                                               
  CHAIRMAN VEZEY called a recess at 8:48 a.m.                                  
  TAPE 94-20, SIDE B                                                           
  Number 000                                                                   
  HB 358 - MOBILE HOME REGISTRATION & TITLES                                   
  CHAIRMAN VEZEY reconvened the meeting at 8:57 a.m.  CSHB 358                 
  was opened for discussion.                                                   
  CSHB 358:  "An Act requiring a mobile home owner to obtain a                 
  certificate of title and requiring the Department of Public                  
  Safety to issue a certificate of title to a mobile home                      
  Number 011                                                                   
  gave the sponsor statement for HB 358.  He said, in 1992,                    
  the Governor's Omnibus and Fee Reduction bill eliminated the                 
  mobile registration service and the state's ability to issue                 
  titles to mobile home owners.  Without a title, there is no                  
  certain way to determine a person selling a mobile home is                   
  the real owner, or whether they first must pay off a lean                    
  holder.  HB 358 would give mobile home owners a tool to                      
  facilitate honest transactions.  He noted dealers, financial                 
  institutions, consumers, and owners are all agree they                       
  should pay an appropriate fee to maintain the cost of                        
  maintaining a title system.                                                  
  Number 049                                                                   
  CHAIRMAN VEZEY noted he did not have a title on his home,                    
  which is real property.                                                      
  Number 057                                                                   
  MR. LOUNSBURY responded real property uses another form,                     
  rather than mobile homes which currently do not have                         
  Number 066                                                                   
  CHAIRMAN VEZEY pointed out he owns a large amount of                         
  expensive equipment which also does not have titles.                         
  Number 071                                                                   
  MR. LOUNSBURY stated businesses are required by law to                       
  provide titles; however, individuals are not as structured.                  
  Therefore, documentation is needed to facilitate the selling                 
  of mobile homes.                                                             
  (REPRESENTATIVE SANDERS returned to the meeting at 9:00                      
  Number 087                                                                   
  REPRESENTATIVE G. DAVIS responded to CHAIRMAN VEZEY's                        
  comment that he did not have a title to his home.  He                        
  commented that it may be cheaper to receive a title to his                   
  home, instead of the process that we currently go through to                 
  assure lenders that we do properly own our residences.                       
  Number 095                                                                   
  CHAIRMAN VEZEY pointed out a title does not actually                         
  guarantee ownership.  People often legally buy and sell                      
  items without changing the title.                                            
  Number 112                                                                   
  REPRESENTATIVE KOTT moved to adopt the committee substitute                  
  to HB 358, version K.                                                        
  CHAIRMAN VEZEY recognized the motion, the committee                          
  secretary called the roll, and the CSHB 358, version K, was                  
  Number 129                                                                   
  REPRESENTATIVE KOTT asked MR. LOUNSBURY to explain the                       
  differences between the original HB 358 and CSHB 358.                        
  Number 132                                                                   
  MR. LOUNSBURY responded the committee substitute was                         
  introduced to tighten up the title, so when it goes over to                  
  the Senate, they could not add anything on to it.  CSHB 358                  
  reads, "An act requiring a mobile home owner," instead of,                   
  "An act allowing."  CSHB 358 also raises the fee from $50 to                 
  $100 to generate an effective program for the state in terms                 
  of cost responsibility, which was approved by the home                       
  owners, realtors and banks.                                                  
  Number 154                                                                   
  CHAIRMAN VEZEY pointed out the fiscal note was for the                       
  original HB 358.                                                             
  REPRESENTATIVE OLBERG clarified the fiscal note states it is                 
  for the sponsor substitute dated March 2, 1994; however, he                  
  believed it was intended for the committee substitute.                       
  CHAIRMAN VEZEY replied JUANITA HENSLEY signed the fiscal                     
  note and the committee would clarify her intent when she                     
  Number 172                                                                   
  testified in favor of CSHB 358.  She felt anyone could claim                 
  ownership to a mobile home and a system was needed to keep                   
  track of them.  Mobile homes are taxed by municipalities as                  
  real property.  She asked if the fee charged for a title                     
  would include a history search and if there would be                         
  assurance that the chain of title would remain on file.  She                 
  continued the new types of mobile homes currently fabricated                 
  are sturdy, lasting many years, and possibly changing                        
  ownership at least a dozen times.  She stressed banks were                   
  very difficult to deal with without proof of ownership.  She                 
  stated an example of a couple having bought a mobile home,                   
  not transferring the title, fixed it up, sold it again, and                  
  the original owner has passed away.  The people who are                      
  buying the home have paid it off, the middle couple has a                    
  title with the deceased's name on it and no bill of sale,                    
  and there is no one to prove they bought it.  With a title                   
  standard, this type of confusion could be avoided.  She also                 
  felt some people may begin to resell the same mobile home                    
  repeatedly and there would not be any proof of who owns it.                  
  Number 231                                                                   
  CHAIRMAN VEZEY commented there is also a lot of real                         
  property in the state which is in the same dilemma.  He                      
  asked MS. WALKER if it was her testimony that at this time a                 
  title does not guarantee who the owner is?                                   
  Number 238                                                                   
  MS. WALKER replied, on the surface a title does not.                         
  Number 240                                                                   
  CHAIRMAN VEZEY clarified owners, sellers, and operators of                   
  mobile home parks need a system to provide a chain of title.                 
  Number 244                                                                   
  MS. WALKER agreed.                                                           
  Number 248                                                                   
  CHAIRMAN VEZEY stated ROD HULSE, SWITZER VILLAGE, deferred                   
  his testimony, but he was available to testify.                              
  Number 257                                                                   
  testified in favor of CSHB 358.  She would like an effective                 
  title system which would give security to title owners.  She                 
  gave an example of her and her husband's own personal                        
  experience in buying a mobile home.  After they bought their                 
  home, they looked for a title transfer.  The seller,                         
  however, stated the title had been stolen. They have had a                   
  very difficult time trying to locate an agency to receive an                 
  official title from file.  They could only get a computer                    
  printout from the Juneau Division of Motor Vehicles (DMV),                   
  which stated the seller really did own the mobile home, and                  
  after two tries, has now received a legal bill of sale.  MS.                 
  CAMPBELL would like an official record of the title change                   
  and would prefer a computer record at the DMV.  She was                      
  surprised at the increase in of the fee from $50 to $100.                    
  Number 344                                                                   
  CHAIRMAN VEZEY suggested MS. CAMPBELL talk to an attorney to                 
  protect her property investment.                                             
  MS. CAMPBELL preferred to not seek an attorney's help.                       
  Number 355                                                                   
  REPRESENTATIVE OLBERG clarified that CHAIRMAN VEZEY was                      
  suggesting MS. CAMPBELL should seek an attorney because of                   
  the degree of the situation she is in.                                       
  Number 360                                                                   
  CHAIRMAN VEZEY pointed out there are many options available                  
  to protect an ownership interest.                                            
  CHAIRMAN VEZEY introduced JUANITA HENSLEY, DMV, and asked                    
  her if the DMV believes it is a proper function of DMV to                    
  act in this role?                                                            
  Number 377                                                                   
  PUBLIC SAFETY, answered questions on CSHB 358.  She                          
  responded the DMV suggested with the Governor's 1992 Omnibus                 
  bill to delete the titling of mobile homes.  DMV felt mobile                 
  homes were a function of real property, and should be                        
  treated as such, as opposed to a vehicle.  In meeting with                   
  REPRESENTATIVE PORTER and others over the problems in                        
  obtaining the proper documentation on mobile homes they                      
  agreed, providing the burden was not placed on the DMV and                   
  the program would pay for itself, the DMV would reissue                      
  titles to mobile homes.  During this period there were title                 
  searches through a real estate title search and the                          
  Recorder's Office was having to do extensive research as                     
  well in UCC filings.                                                         
  DMV had requested mobile home titling be deleted from the                    
  statute, in 1992, because titling was not required by the                    
  owners.  There was an immense amount of research to go                       
  through, especially in cases where ownership may have                        
  changed 4-5 times.  Past files had even been purged from the                 
  filing system making the process very labor intensive.                       
  Prior to the mandate, as proposed in HB 408, DMV issued                      
  approximately 200 mobile home titles a year.  DMV estimates                  
  it would issue 2,500 titles, based on information from the                   
  industry.  This figure includes the 1,500 new units sold per                 
  year statewide by the industry, plus an additional 1,000                     
  from individuals who may sell theirs.  DMV suggested the                     
  $100 fee believing it would not be too costly, because it                    
  would cost more to go through the UCC filing, and also title                 
  searches through a real estate company.  MS. HENSLEY's                       
  fiscal note indicates CSHB 358 would bring in $250,000 a                     
  year in revenue, at an operating cost of $110,000 to the                     
  state.  DMV has no objection to titling mobile homes as long                 
  as it pays for itself.                                                       
  Number 430                                                                   
  CHAIRMAN VEZEY inquired if the DMV had to do a UCC search to                 
  issue a title.                                                               
  MS. HENSLEY responded that the DMV does not do a UCC search.                 
  DMV offers a title based on a bill of sale or, if the                        
  vehicle is new, documentation from a bank or a                               
  manufacturer's certificate of origin.  Whenever that vehicle                 
  is sold the owner would then be required to change titles                    
  just as motor vehicles do.                                                   
  Number 439                                                                   
  CHAIRMAN VEZEY did not feel his constituents, of which many                  
  live in mobile homes, would like him to pass a bill which                    
  would require them to go in and title their home.  He asked                  
  if mobile homes were considered as real property if they                     
  were sold in improvement to real property.                                   
  MS. HENSLEY could not answer if mobile homes were treated as                 
  real estate property or not.                                                 
  Number 449                                                                   
  CHAIRMAN VEZEY clarified real property refers to the fee                     
  simple, a stake in land, and the improvements thereon.  He                   
  felt CSHB 358 would require a lot of people to have to go                    
  and buy a title, when they may have already gone through the                 
  recording process for real property.                                         
  Number 457                                                                   
  MS. HENSLEY was not familiar with the requirements for leans                 
  by financial institutions for real property, when a mobile                   
  home is set on it.                                                           
  Number 462                                                                   
  CHAIRMAN VEZEY asked if MS. HENSLEY was including UCC                        
  agreements, in the category of leans, on mobile homes.                       
  Number 464                                                                   
  MS. HENSLEY responded the DMV made the suggestion to the                     
  Governor's Omnibus bill because if, for example, a person                    
  bought a boat, a UCC filing lean would be required if it is                  
  financed.  A person would have to pay a filing fee for banks                 
  to file a UCC lean on the boat.  DMV used to do an immense                   
  amount of research.                                                          
  Number 474                                                                   
  CHAIRMAN VEZEY asked the cost of filing or recording a UCC                   
  agreement, deed, or bill of sale.  He believed it was $10.                   
  Number 479                                                                   
  MS. HENSLEY answered, according to information from                          
  REPRESENTATIVE PORTER's office, titling through the DMV                      
  would be more cost effective to the owners, even at $100.                    
  Number 497                                                                   
  CHAIRMAN VEZEY asked why it costs more to record an                          
  ownership transaction dealing with real property, than                       
  dealing with vehicle property and titles.                                    
  Number 500                                                                   
  MS. HENSLEY responded real estate companies would require                    
  full land recorder title searches and UCC title searches                     
  even on mobile homes.                                                        
  Number 514                                                                   
  CHAIRMAN VEZEY clarified DMV could title mobile homes                        
  cheaper than the private sector in conjunction with the                      
  Recorder's Office.  He thought the DMV might be presumptuous                 
  in their cost expectations and did not feel the cost of the                  
  private sector was fair in comparison to the DMV.                            
  Number 526                                                                   
  MS. HENSLEY felt the DMV was efficient and information                       
  received back from the sponsor, from a meeting last summer                   
  with other legislators and their constituents, regarding                     
  mobile home owners and dealers, they felt it was very costly                 
  to continue the current process of title acquirement.                        
  Number 535                                                                   
  REPRESENTATIVE OLBERG stated the 1,500 new units sold per                    
  year would take five minutes for the DMV, noting the                         
  efficiency.  The 1,000 used mobile home sales per year,                      
  everyone who already has a title without too many changes of                 
  ownership, would still be relatively simple.  There will be                  
  some titles extremely complicated.  He pointed out UCC                       
  searches and title searches are expensive.                                   
  Number 545                                                                   
  CHAIRMAN VEZEY stated the amount of money spent in insuring                  
  land through searches is much more guaranteed than a title                   
  received by DMV.  He thought a type of insurance policy                      
  which guarantees a mobile home title might be helpful.                       
  MS. HENSLEY responded a guarantee is not available for                       
  mobile home owners.                                                          
  Number 560                                                                   
  CHAIRMAN VEZEY thought the guarantee was available if they                   
  own the land the improvement sits on.  A mobile home on                      
  rented space would not have this option.                                     
  Number 562                                                                   
  MS. HENSLEY commented, in the municipality of Anchorage,                     
  they show 4,884 mobile homes in parks where the land is not                  
  usually owned.  Fairbanks Community Research Center advised                  
  they have 2,268 mobile homes in mobile home parks.                           
  Number 570                                                                   
  REPRESENTATIVE OLBERG clarified when a mobile home becomes                   
  permanently attached to the ground by foundation on a                        
  specific piece of land, it is no longer a mobile home.                       
  Number 575                                                                   
  CHAIRMAN VEZEY believed a title company would not issue                      
  title insurance unless the owner also had a fee simple                       
  interest in the property where the improvement sits.                         
  REPRESENTATIVE OLBERG agreed, but the mobile home would only                 
  be an improvement and would not relate to the property                       
  Number 581                                                                   
  MS. HENSLEY pointed out every mobile home without a title,                   
  under CSHB 358, would have to get one.  She did not have the                 
  exact number, and offered CHAIRMAN VEZEY could revise the                    
  total cost of the title down further.  DMV suggested the                     
  $100 fee to pay for the process.  New and used mobile home                   
  sales, 2,500 per year, would be the focus of the DMV.                        
  Number 591                                                                   
  REPRESENTATIVE G. DAVIS stated the large amount of mobile                    
  home owners in certain districts was of concern to him.  He                  
  clarified these owners would not have to rush down and get                   
  titles.  CSHB 358 states the DMV shall issue a certificate                   
  of title to the owner upon application and payment.  If an                   
  owner wanted to sell their mobile home, a guarantee of                       
  ownership could be acquired at the DMV.                                      
  Number 599                                                                   
  CHAIRMAN VEZEY pointed out CSHB 358 is "an Act requiring" a                  
  mobile home owner.  CSHB 358 does not distinguish between                    
  those renting a space or those who own the property.                         
  Number 601                                                                   
  REPRESENTATIVE OLBERG sensed his constituents would not all                  
  rush down to obtain a title.  He felt the vast majority of                   
  mobile homes probably do have titles, because it's been less                 
  than a year since the program was in effect.                                 
  Number 612                                                                   
  CHAIRMAN VEZEY stated mobile homes in his district have sold                 
  numerous times, without the proper transfer of titles.  In-                  
  depth research would be involved.                                            
  Seeing no more testimony from MS. HENSLEY, CHAIRMAN VEZEY                    
  let MS. WALKER readdress the committee.                                      
  Number 627                                                                   
  MS. WALKER asked MS. HENSLEY if it would be possible to set                  
  up some kind of fee scheduling, whereby those requiring less                 
  research could pay a lesser amount.                                          
  Number 635                                                                   
  CHAIRMAN VEZEY answered anything was possible and a                          
  subcommittee would be formed to create a bill of useful                      
  commercial purpose, and not offensive to the public.                         
  CHAIRMAN VEZEY asked MR. LOUNSBURY to join the table.  The                   
  committee understands the intent of CSHB 358.  CHAIRMAN                      
  VEZEY suggested a subcommittee be formed and MR. LOUNSBURY                   
  be a part of it.  He would like to meet with those                           
  knowledgeable of the legal ramifications of establishing                     
  MR. LOUNSBURY stated, in reference to CHAIRMAN VEZEY's                       
  constituents, that he was informed by staff of Les Fickes,                   
  Riverview Mobile Home Park Owner, that he would be in favor                  
  of a bill like CSHB 358.  MR. LOUNSBURY said he had no                       
  objection with forming a subcommittee.                                       
  Number 666                                                                   
  CHAIRMAN VEZEY knew both Mr. Fickes and Mr. Rahoy who own                    
  mobile parks in his districts, but believed there was a                      
  general lack of understanding in commercial standards and                    
  legality of ownership.  He thought the committee should have                 
  "an expanded picture."                                                       
  Number 674                                                                   
  REPRESENTATIVE OLBERG thought "when ownership changes" could                 
  be added to the title of the CSHB 358.                                       
  Number 679                                                                   
  CHAIRMAN VEZEY responded this change would make CSHB 358                     
  more palatable.  He pointed out those who buy and sell real                  
  property are not required to record their transactions.                      
  Number 683                                                                   
  REPRESENTATIVE OLBERG thought the requirement would also not                 
  be 100 percent complied with, either.                                        
  Number 684                                                                   
  REPRESENTATIVE G. DAVIS proposed the title might be changed                  
  to read, "An Act relating to a mobile home owner to obtain,"                 
  instead of, "requiring."  He noted "requiring" is the word                   
  the committee is having problems with.                                       
  Number 689                                                                   
  CHAIRMAN VEZEY stated the original bill is "An Act allowing                  
  a mobile home owner."                                                        
  Number 691                                                                   
  REPRESENTATIVE OLBERG liked the original title better, but                   
  questioned the concern that it was too broad.                                
  Number 692                                                                   
  REPRESENTATIVE KOTT inquired if the was a companion Senate                   
  Bill in the Senate presently.                                                
  Number 698                                                                   
  CHAIRMAN VEZEY paused the committee to change the tape.                      
  TAPE 94-21, SIDE A                                                           
  Number 000                                                                   
  CHAIRMAN VEZEY resumed the meeting.                                          
  Number 002                                                                   
  REPRESENTATIVE G. DAVIS felt eliminating the word                            
  "requiring" would satisfy his concerns with CSHB 358.  There                 
  will always be those individuals who do not follow the                       
  transfer process.  He moved page 1, line 1, to read, "An Act                 
  relating to a mobile home owner to obtain a title."                          
  Number 034                                                                   
  CHAIRMAN VEZEY interjected he could entertain the motion,                    
  however, he would like more testimony on CSHB 358 before it                  
  is passed out of committee.  He did agree flexibility needed                 
  to be created in CSHB 358.  CHAIRMAN VEZEY stated CSHB 358                   
  would be rescheduled in the near future.                                     
  REPRESENTATIVE G. DAVIS withdrew his motion.                                 
  Number 054                                                                   
  REPRESENTATIVE KOTT commented the subcommittee should also                   
  examine the fee schedule.  He believed 2,500 titles at $45                   
  would cost $112,000, which would be more appropriate.                        
  Number 063                                                                   
  CHAIRMAN VEZEY referred to the time, risk and liability,                     
  involved in doing title searches as MS. HENSLEY had                          
  mentioned.  He noted a title search could not be bought for                  
  $100 for property.                                                           
  Number 079                                                                   
  REPRESENTATIVE KOTT commented there may be constitutional                    
  problems in varying the fees for those requiring less                        
  Number 088                                                                   
  CHAIRMAN VEZEY felt if a person could establish qualified                    
  ownership and have it recorded for posterity, then a $100                    
  fee would not be unreasonable.                                               
  CSHB 358 was held in committee to be rescheduled.                            
  Number 119                                                                   
  SB 128 - LEGISLATIVE AUDITS                                                  
  REPRESENTATIVE KOTT moved to reopen SB 128 for the purpose                   
  of discussing it and moving it out of committee.  SB 128                     
  deals with the Office of Management and Budget (OMB) and                     
  provides they be responsible for implementation of                           
  discrepancies discovered in recommendations made by                          
  Legislative Budget and Audit.                                                
  CHAIRMAN VEZEY agreed to discussion, but he was not prepared                 
  to move it out of committee yet.  He found the fiscal notes                  
  not realistic and the costs needed to be investigated more.                  
  Number 139                                                                   
  REPRESENTATIVE KOTT withdrew his motion to reopen SB 128.                    
  HB 392 - PERMANENT FUND DIVIDEND PROGRAM                                     
  CHAIRMAN VEZEY opened the discussion on the new Version O,                   
  dated 3/3/94 of committee substitute (CS) for HB 392.  The                   
  amendments to the CS allow exemptions for individuals                        
  outside the state receiving medical treatment and                            
  individuals outside the state accompanying a minor who is                    
  receiving medical treatment.                                                 
  Number 167                                                                   
  RICHARD VITALE clarified the CS, presently before the                        
  committee, is the final version according to the Permanent                   
  Fund Dividend Division.                                                      
  Number 172                                                                   
  CHAIRMAN VEZEY understood the committee could take action on                 
  the CS for HB 392 if the committee desires.  Under the                       
  current CS for HB 392, the only persons who would be                         
  eligible for a dividend under category 9, if absent from the                 
  state for 180 days a year, or five years or more, would be a                 
  member of the U.S. Congress from Alaska.                                     
  Number 208                                                                   
  REPRESENTATIVE OLBERG stated on page 5, line 8, allows                       
  absences under categories 7-9.                                               
  Number 216                                                                   
  CHAIRMAN VEZEY clarified category number 9 is serving as a                   
  member of the United States Congress.  An absence under                      
  categories 7-9 is a waiver of the five year line.                            
  Number 227                                                                   
  REPRESENTATIVE G. DAVIS moved to adopt Version O, dated                      
  3/3/94  of CSHB 392, to the House State Affairs Committee.                   
  Number 240                                                                   
  CHAIRMAN VEZEY recognized the motion, the secretary called                   
  the roll, and the CSHB 392 was adopted by the House State                    
  Affairs Committee.                                                           
  Number 245                                                                   
  REPRESENTATIVE G. DAVIS moved CSHB 392 be passed from                        
  committee with individual recommendations.                                   
  Number 250                                                                   
  CHAIRMAN VEZEY recognized the motion, the committee                          
  secretary called the roll, and CSHB 392 was passed from the                  
  House State Affairs Committee with individual                                
  Having no more business before the committee, CHAIRMAN VEZEY                 
  adjourned the meeting at 9:54 a.m.                                           

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