Legislature(2017 - 2018)BELTZ 105 (TSBldg)

02/20/2018 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

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Audio Topic
03:30:38 PM Start
03:31:31 PM Confirmation Hearing(s): Commissioner, Department of Commerce, Community and Economic Development
03:46:31 PM SB180
03:50:34 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Consideration of Governor's Appointees: TELECONFERENCED
DCCED Commissioner Mike Navarre
*+ SB 180 LAND SALES PRACTICES TELECONFERENCED
Moved SB 180 Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
    SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                  
                       February 20, 2018                                                                                        
                           3:30 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Chair                                                                                                     
Senator Lyman Hoffman                                                                                                           
Senator Bert Stedman                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Anna MacKinnon                                                                                                          
Senator Berta Gardner                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S):                                                                                                        
                                                                                                                                
Commissioner, Department of Commerce, Community and Economic                                                                  
Development                                                                                                                   
                                                                                                                                
     Commissioner Designee Mike Navarre                                                                                         
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
SENATE BILL NO. 180                                                                                                             
"An Act amending and repealing  registration filing provisions of                                                               
the   Uniform  Land   Sales  Practices   Act;  relating   to  the                                                               
jurisdiction  of  the  office  of  administrative  hearings;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED SB 180 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 180                                                                                                                  
SHORT TITLE: LAND SALES PRACTICES                                                                                               
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/09/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/09/18       (S)       CRA, JUD                                                                                               
02/20/18       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ACTING COMMISSIONER MIKE NAVARRE                                                                                                
Department of Commerce, Community and Economic Development                                                                      
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT: Confirmation  hearing  and  presenter of  SB
180.                                                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:30:38 PM                                                                                                                    
CHAIR  CLICK  BISHOP called  the  Senate  Community and  Regional                                                             
Affairs Standing Committee meeting to  order at 3:30 p.m. Present                                                               
at the  call to order  were Senators Hoffman, Stedman,  and Chair                                                               
Bishop.                                                                                                                         
                                                                                                                                
^Confirmation Hearing(s):  Commissioner, Department  of Commerce,                                                               
Community and Economic Development                                                                                              
                    CONFIRMATION HEARING(S)                                                                                 
  Commissioner, Department of Commerce, Community and Economic                                                              
                          Development                                                                                       
                                                                                                                              
3:31:31 PM                                                                                                                  
CHAIR BISHOP announced the  confirmation hearing of commissioner-                                                               
designee,  Mike   Navarre,  for   the  Department   of  Commerce,                                                               
Community and Economic Development (DCCED).                                                                                     
                                                                                                                                
COMMISSIONER  DESIGNEE  MIKE  NAVARRE,  Department  of  Commerce,                                                               
Community  and Economic  Development (DCCED),  Anchorage, Alaska,                                                               
said he  comes to this job  with a broad background  in local and                                                               
state government and  private business. He brings  his own biases                                                               
and  experiences to  the  job just  like they  all  do and  looks                                                               
forward to  working with  this committee  and the  legislature in                                                               
the  best  interests  of  Alaskans. He  was  prepared  to  answer                                                               
questions.                                                                                                                      
                                                                                                                                
3:32:32 PM                                                                                                                    
SENATOR  STEDMAN  said  DCCED   oversees  the  Federal  Emergency                                                               
Management Agency  (FEMA) program  and asked  if he  was familiar                                                               
with  the  funds  that  come  to the  state  to  administer  this                                                               
program, specifically the flood insurance.                                                                                      
                                                                                                                                
COMMISSIONER  DESIGNEE  NAVARRE said  he  was  familiar with  the                                                               
program,  because  of  his  former  job as  Mayor  of  the  Kenai                                                               
Peninsula Borough where he worked  to incorporate local knowledge                                                               
into the FEMA-led insurance program and its mapping process.                                                                    
                                                                                                                                
SENATOR STEDMAN said FEMA wants  to push development back off the                                                               
water front including  pilings and rock fills, and  a majority of                                                               
the thousands of  pre-existing homes will not  qualify because of                                                               
their  height. FEMA  has extensive  reach; it  can link  federal-                                                               
backed mortgages into their program  and restrict other insurance                                                               
products  from coming  in, basically  backing communities  into a                                                               
corner.  The whole  economy for  his  region is  derived off  the                                                               
shore front.                                                                                                                    
                                                                                                                                
COMMISSIONER   DESIGNEE  NAVARRE   agreed  adding   that  Federal                                                               
Emergency  Management  Agency  (FEMA) requirements  are  one-size                                                               
fits all  in terms  of the flood  insurance program  and disaster                                                               
relief,  which has  mostly  happened  to the  East  Coast of  the                                                               
United  States  that  continues  to rebuild  in  areas  that  are                                                               
subject  to  significant storms.  Every  time  that happens,  the                                                               
federal government  ends up spending  a bunch of money.  So, they                                                               
have  tried to  reduce some  of those  costs, and  communities in                                                               
Alaska,  that  don't have  the  same  kind  of water  front,  are                                                               
getting caught up  in it. A dialogue  with Alaska's congressional                                                               
delegation is  the best avenue  for seeing some movement  in that                                                               
conversation.                                                                                                                   
                                                                                                                                
3:38:32 PM                                                                                                                    
SENATOR STEDMAN  said the issue  that Alaska is  subsidizing Gulf                                                               
Coast  state disaster  relief has  been burning  on his  desk for                                                               
several months.  The premiums collected  are substantial  and the                                                               
number  of claims  paid in  Alaska  since the  inception is  near                                                               
zero.                                                                                                                           
                                                                                                                                
CHAIR BISHOP  asked Mr. Navarre  what his top two  priorities are                                                               
now  that he  knows the  flood insurance  issue is  the top  one.                                                               
Fairbanks just  spent millions  of dollars building  a dam  and a                                                               
dyke  to prevent  a flood  and it  has the  same issues  with the                                                               
flood insurance premiums.                                                                                                       
                                                                                                                                
COMMISSIONER DESIGNEE NAVARRE answered that  he agreed to do this                                                               
job, because of  a level of frustration and concern  he had about                                                               
the  state's  long-term economic  outlook.  That  is his  highest                                                               
priority. Then, the state needs a responsible fiscal plan.                                                                      
                                                                                                                                
CHAIR  BISHOP opened  public testimony  and finding  none, closed                                                               
it.                                                                                                                             
                                                                                                                                
3:45:03 PM                                                                                                                    
SENATOR STEDMAN moved to  forward Commissioner Designee Navarre's                                                               
name  on to  a joint  session  for consideration.  There were  no                                                               
objections and it was so ordered.                                                                                               
                                                                                                                                
3:46:09 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
                   SB 180-LAND SALES PRACTICES                                                                              
                                                                                                                                
3:46:31 PM                                                                                                                    
CHAIR  BISHOP called  the  meeting back  to  order and  announced                                                               
consideration of SB 180, version 30-GS2810\A.                                                                                   
                                                                                                                                
3:46:44 PM                                                                                                                    
MIKE  NAVARRE,  Commissioner-designee,  Department  of  Commerce,                                                               
Community  and Economic  Development (DCCED),  Anchorage, Alaska,                                                               
said SB 180  was recommended by the recently  retired director of                                                               
the  Division  of  Banking  and  Securities,  because  land  sale                                                               
practices law  was obsolete. It  was consumer protection  law put                                                               
in statute  in 1968  mostly for developers  coming to  Alaska and                                                               
taking  advantage   of  a  lack  of   sophistication  by  Alaskan                                                               
consumers.  It  hasn't been  used  since  2000 and  the  consumer                                                               
protection  in real  estate law  and regulations  in Alaska  have                                                               
significantly  changed since  then and  these protections  are no                                                               
longer necessary.  At the time  it was  adopted it was  a uniform                                                               
law  and  only  nine  other   states  adopted  it.  The  National                                                               
Conference  of Commissioners  of Uniform  State Laws  recommended                                                               
withdrawing it in 2012 as obsolete.                                                                                             
                                                                                                                                
3:48:43 PM                                                                                                                    
CHAIR  BISHOP,  finding  no  questions  from  committee  members,                                                               
opened public testimony.                                                                                                        
                                                                                                                                
MR. NAVARRE said  this language was not available  to the reviser                                                               
of statutes  and can't be  removed that  way. So, it  was brought                                                               
before the legislature for repeal.                                                                                              
                                                                                                                                
CHAIR BISHOP noted the next  committee of referral was Judiciary,                                                               
and finding no further comments, closed public testimony.                                                                       
                                                                                                                                
SENATOR  STEDMAN  moved  to  report   SB  180,  version  A,  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s). There were no objections and it was so ordered.                                                                        
                                                                                                                                
3:50:25 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:50:34 PM                                                                                                                    
CHAIR BISHOP called the meeting back to order at 3:50:34 p.m.                                                                   
and finding no further business, adjourned the Senate Community                                                                 
and Regional Affairs Standing Committee meeting at 3:50 p.m.                                                                    
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 180 Fiscal Note- DCCED.pdf SCRA 2/20/2018 3:30:00 PM
SB 180
SB 180 Hearing Request.pdf SCRA 2/20/2018 3:30:00 PM
SB 180
SB 180 ver A Sectional Analysis.pdf SCRA 2/20/2018 3:30:00 PM
SB 180
SB 180 Transmittal Letter.pdf SCRA 2/20/2018 3:30:00 PM
SB 180
SB 180 ver A.pdf SCRA 2/20/2018 3:30:00 PM
SB 180
Commissioner Navarre.pdf SCRA 2/20/2018 3:30:00 PM
Mike Navarre confirmation