03/16/2009 03:15 PM House LABOR & COMMERCE

HB 108-PROPERTY FORECLOSURES AND EXECUTIONS                                                                                   
                                                                                                                                
3:20:01 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
HOUSE  BILL   NO.  108,  "An   Act  relating  to   real  property                                                               
foreclosures, to the sale of  property on execution, and to deeds                                                               
of trust."                                                                                                                      
                                                                                                                                
JANE  PIERSON, Staff,  Representative  Jay  Ramras, Alaska  State                                                               
Legislature,  stated she  is staff  to Representative  Jay Ramras                                                               
and is available for questions.                                                                                                 
                                                                                                                                
3:21:13 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:21 p.m. to 3:22 p.m.                                                                       
                                                                                                                                
3:22:35 PM                                                                                                                    
                                                                                                                                
ROBERT  SCHMIDT,  Attorney,  Groh  Eggers  LLC,  stated  that  he                                                               
previously testified  on HB  108.   He related  his understanding                                                               
that two proposed  amendments will be introduced,  one that would                                                               
eliminate bonding requirements and  the other to address Internet                                                               
websites.   He  offered that  the proposed  amendments completely                                                               
address his earlier  concerns and he now has  only minor concerns                                                               
with HB 108.                                                                                                                    
                                                                                                                                
CHAIR OLSON agreed that two  proposed amendments were received by                                                               
the committee.                                                                                                                  
                                                                                                                                
STEPHEN ROUTH,  Attorney, Routh &  Crabtree, APC, stated  that he                                                               
is also  fine with  the proposed amendments  and is  available to                                                               
answer questions.                                                                                                               
                                                                                                                                
3:24:01 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify,  closed public  testimony on  HB  108.   In response  to                                                               
Representative  Chenault, Chair  Olson stated  that the  proposed                                                               
amendments to HB 108 are being  submitted by the prime sponsor of                                                               
the bill.                                                                                                                       
                                                                                                                                
3:24:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  made  a  motion  to  adopt  Amendment  1,                                                               
labeled 26-LS0318\A.1, Bannister, 2/26/09, which read:                                                                          
                                                                                                                                
     Page 10, line 13:                                                                                                          
          Delete "or"                                                                                                           
                                                                                                                                
     Page 10, line 15, following "AS 21.66.270":                                                                                
          Insert "; or                                                                                                          
               (3) a state agency, including the Alaska                                                                         
     Housing Finance Corporation and the Alaska Industrial                                                                      
     Development and Export Authority"                                                                                          
                                                                                                                                
CHAIR OLSON objected for purpose of discussion.                                                                                 
                                                                                                                                
3:24:55 PM                                                                                                                    
                                                                                                                                
MS.  PIERSON  explained that  Amendment  1  states that  a  state                                                               
agency, including  the Alaska Housing Finance  Corporation (AHFC)                                                               
and Alaska Industrial Development  Export Authority (AIDEA), does                                                               
not have  to post bond.   Thus, state agencies would  not need to                                                               
post a bond.   In response to Representative  Neuman, Ms. Pierson                                                               
explained  that  a  bonding   requirement  exists  for  trustees.                                                               
However,  it  was  determined that  state  agencies  have  enough                                                               
assets that they do not need to  bond.  She offered that it would                                                               
be  similar  to  how  a  title  insurance  company  is  given  an                                                               
exclusion.                                                                                                                      
                                                                                                                                
CHAIR  OLSON  removed his  objection.    There being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
3:26:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  made  a  motion  to  adopt  Amendment  2,                                                               
labeled, 26-LS0318\A.2, Bannister, 3/12/09, which read:                                                                         
                                                                                                                                
     Page 2, line 19, through page 3, line 13:                                                                                  
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
CHAIR OLSON objected for purpose of discussion.                                                                                 
                                                                                                                                
3:26:46 PM                                                                                                                    
                                                                                                                                
MS. PIERSON explained  that Amendment 2 deletes  all the Internet                                                               
publication  requirements.   She related  her understanding  that                                                               
possibly only  one website would  qualify.  She offered  that she                                                               
held  discussions with  realtors and  mortgage companies  who are                                                               
willing to work  on the issue to allow others  to qualify such as                                                               
newspapers, to  address cost such  as providing free  access, and                                                               
other options.   She opined  that the Internet provision  will be                                                               
reintroduced, but it will represent consensus.                                                                                  
                                                                                                                                
CHAIR  OLSON  removed his  objection.    There being  no  further                                                               
objection, Amendment 2 was adopted.                                                                                             
                                                                                                                                
REPRESENTATIVE  HOLMES expressed  her  concern that  an owner  in                                                               
foreclosure must appear two days prior  to the sale and could not                                                               
appear  on the  day  of the  sale  to remit  funds  and stop  the                                                               
foreclosure.                                                                                                                    
                                                                                                                                
3:28:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  moved to  report the  HB 108,  as amended,                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying fiscal note.                                                                                                       
                                                                                                                                
There being  no objection,  CSHB 108(L&C)  was reported  from the                                                               
House Labor and Commerce Standing Committee.                                                                                    
                                                                                                                                
3:29:01 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:29 p.m. to 3:31 p.m.