03/20/2007 01:30 PM Senate LABOR & COMMERCE

          SB  18-PROPERTY FORECLOSURES AND EXECUTIONS                                                                       
                                                                                                                              
CHAIR ELLIS announced SB 18 to be up for consideration. He asked                                                                
Bryan Merrell, First American Title Insurance Co., Seattle,                                                                     
Washington, if he had any comments to make.                                                                                     
                                                                                                                                
MR. MERRELL responded that he was available to answer questions.                                                                
                                                                                                                                
1:33:29 PM                                                                                                                    
SENATOR BUNDE mentioned  that he had a proposed CS  to SB 18 [25-                                                               
LS0153\ L] that Mr. Routh would explain.                                                                                        
                                                                                                                                
STEPHAN ROUTH, Crabtree Routh, explained  that the CS has changes                                                               
in  five areas.  The  first is  an  inconsistency in  terminology                                                               
between "grantor" and "trustor". It's  a technical change and has                                                               
been  made consistently  "trustor" throughout  the document.  The                                                               
second change is  also technical that sets up  parameters for the                                                               
length of  time for publishing  on the Website. The  third change                                                               
clarifies why  the Website for  dissemination of  the information                                                               
has to be free to the public for viewing.                                                                                       
                                                                                                                                
SENATOR DAVIS joined the committee at 1:34:36 PM.                                                                             
                                                                                                                                
MR.  ROUTH  continued  explaining   that  the  fourth  item  adds                                                               
language  to  clarify  that "physical  possession"  means  actual                                                               
physical  possession. So,  in two  places in  section 4  the word                                                               
"actual" or  "actually" has  been added. Last,  a typo  that read                                                               
"and" in section 11 was corrected to "or".                                                                                      
                                                                                                                                
CHAIR ELLIS  mentioned that they  are referring to  the Bannister                                                               
CSSB 18, version L.                                                                                                             
                                                                                                                                
SENATOR BUNDE moved to adopt  CSSB 18(L&C), version L. There were                                                               
no objections and it was so ordered.                                                                                            
                                                                                                                                
1:36:33 PM                                                                                                                    
SENATOR BUNDE said the changes  to the foreclosure procedure were                                                               
technical and  made for  a more  efficient and  consumer friendly                                                               
law. The  bill had not  changed substantially from  the original.                                                               
It would  allow people to bid  on a foreclosure property  and use                                                               
it as a residence and assume the American dream.                                                                                
                                                                                                                                
CHAIR ELLIS  said he personally  supported his goal and  asked if                                                               
he would  be able to  get all  the commercials off  late-night TV                                                               
that  promote  wealth-creating   systems  built  around  flipping                                                               
properties with no money down.                                                                                                  
                                                                                                                                
SENATOR  BUNDE replied  that while  the Alaska  State Senate  has                                                               
awesome power, it has its limitations.                                                                                          
                                                                                                                                
SENATOR HOFFMAN joined the committee at 1:38:02 PM.                                                                           
                                                                                                                                
SENATOR  STEVENS asked  what  "actually  in physical  possession"                                                               
means.                                                                                                                          
                                                                                                                                
MR. ROUTH explained  the intent was to deal with  a Supreme Court                                                               
case heard  a few years ago  called the Nystrom v.  Buckhorn that                                                               
set  up  standards that  were  hard  for  the title  industry  to                                                               
conform  to. So,  the  intent of  this language  is  to make  the                                                               
meaning  absolutely  clear  that  somebody  has  to  actually  be                                                               
physically occupying the property.                                                                                              
                                                                                                                                
CHAIR ELLIS noted there was no  opposition to the bill and he saw                                                               
nothing in  the CS that  would trigger  a new fiscal  note, which                                                               
was zero.                                                                                                                       
                                                                                                                                
SENATOR  BUNDE said  he had  heard  of no  opposition either  and                                                               
moved to pass  CSSB 18(L&C). There were no objections  and it was                                                               
so ordered.