Legislature(2011 - 2012)BUTROVICH 205

04/15/2011 01:30 PM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Location Change --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 89 LEGISLATIVE ETHICS ACT TELECONFERENCED
Heard & Held
+= SB 104 MANUFACTURED HOMES AS REAL PROPERTY TELECONFERENCED
Heard & Held
+= SB 98 BIOMETRIC INFORMATION FOR ID TELECONFERENCED
Moved CSSB 98(JUD) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                         April 15, 2011                                                                                         
                           1:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Hollis French, Chair                                                                                                    
Senator Bill Wielechowski, Vice Chair                                                                                           
Senator Joe Paskvan                                                                                                             
Senator John Coghill                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lesil McGuire                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 89                                                                                                              
"An Act clarifying  that a legislator or  legislative employee is                                                               
allowed  to accept  certain charity  events; amending  disclosure                                                               
deadlines   under   the    Legislative   Ethics   Act;   relating                                                               
compassionate   gifts;  allowing   legislators  and   legislative                                                               
employees  to  use  legislative   to  requests  to  refrain  from                                                               
disclosure  under the  Legislative Ethics  Act; and  establishing                                                               
mailing lists for campaign  purposes and nonlegislative purposes;                                                               
allowing legislators  a seat  for an  alternate public  member on                                                               
the Select  Committee on Legislative  Ethics and  and legislative                                                               
employees  who  are  representing persons  in  an  administrative                                                               
hearing to  clarifying the requirements related  to participation                                                               
by alternate members in the  contact hearing officers and attempt                                                               
to influence the  outcome of the hearing if  they are proceedings                                                               
of the committee."                                                                                                              
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 98                                                                                                              
"An Act relating to biometric information."                                                                                     
                                                                                                                                
     - MOVED CSSB 98(JUD) OUT OF COMMITTEE                                                                                      
                                                                                                                                
SENATE BILL NO. 104                                                                                                             
"An Act  relating to  manufactured homes,  including manufactured                                                               
homes  permanently   affixed  to  land,  to   the  conversion  of                                                               
manufactured  homes  to  real  property,   to  the  severance  of                                                               
manufactured   homes  from   real  property,   to  the   titling,                                                               
conveyance,  and  encumbrance  of   manufactured  homes,  and  to                                                               
manufacturers' certificates of origin for vehicles; and                                                                         
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  89                                                                                                                  
SHORT TITLE: LEGISLATIVE ETHICS ACT                                                                                             
SPONSOR(s): SENATOR(s) COGHILL                                                                                                  
                                                                                                                                
02/16/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/16/11       (S)       STA, JUD                                                                                               
03/15/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
03/15/11       (S)       Heard & Held                                                                                           
03/15/11       (S)       MINUTE(STA)                                                                                            
03/31/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
03/31/11       (S)       Moved CSSB  89(STA) Out of Committee                                                                   
03/31/11       (S)       MINUTE(STA)                                                                                            
04/01/11       (S)       STA RPT CS  1DP 4NR    NEW TITLE                                                                       
04/01/11       (S)       DP: MEYER                                                                                              
04/01/11       (S)       NR: WIELECHOWSKI, KOOKESH, PASKVAN,                                                                    
                         GIESSEL                                                                                                
04/11/11       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/11/11       (S)       Scheduled But Not Heard                                                                                
04/13/11       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/13/11       (S)       Scheduled But Not Heard                                                                                
04/15/11       (S)       JUD AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB  98                                                                                                                  
SHORT TITLE: BIOMETRIC INFORMATION FOR ID                                                                                       
SPONSOR(s): SENATOR(s) WIELECHOWSKI                                                                                             
                                                                                                                                
03/11/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/11/11       (S)       STA, JUD                                                                                               
03/15/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
03/15/11       (S)       Heard & Held                                                                                           
03/15/11       (S)       MINUTE(STA)                                                                                            
03/17/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
03/17/11       (S)       Moved CSSB  98(STA) Out of Committee                                                                   
03/17/11       (S)       MINUTE(STA)                                                                                            
03/18/11       (S)       STA RPT CS  4DP    SAME TITLE                                                                          
03/18/11       (S)       DP:   WIELECHOWSKI,    GIESSEL,   MEYER,                                                               
                         PASKVAN                                                                                                
03/21/11       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/21/11       (S)       Heard & Held                                                                                           
03/21/11       (S)       MINUTE(JUD)                                                                                            
03/28/11       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/28/11       (S)       Heard & Held                                                                                           
03/28/11       (S)       MINUTE(JUD)                                                                                            
04/06/11       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/06/11       (S)       Heard & Held                                                                                           
04/06/11       (S)       MINUTE(JUD)                                                                                            
04/15/11       (S)       JUD AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 104                                                                                                                  
SHORT TITLE: MANUFACTURED HOMES AS REAL PROPERTY                                                                                
SPONSOR(s): SENATOR(s) FRENCH                                                                                                   
                                                                                                                                
03/16/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/16/11       (S)       STA, JUD                                                                                               
03/29/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
03/29/11       (S)       Heard & Held                                                                                           
03/29/11       (S)       MINUTE(STA)                                                                                            
03/31/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
03/31/11       (S)       Moved SB 104 Out of Committee                                                                          
03/31/11       (S)       MINUTE(STA)                                                                                            
04/01/11       (S)       STA RPT  2DP 3NR                                                                                       
04/01/11       (S)       DP: KOOKESH, MEYER                                                                                     
04/01/11       (S)       NR: WIELECHOWSKI, PASKVAN, GIESSEL                                                                     
04/06/11       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/06/11       (S)       Heard & Held                                                                                           
04/06/11       (S)       MINUTE(JUD)                                                                                            
04/15/11       (S)       JUD AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RYNNIEVA MOSS, Chief of Staff                                                                                                   
Senator John Coghill                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Delivered a sectional analysis of SB 89.                                                                  
                                                                                                                                
MICHAEL CAUFIELD, Staff                                                                                                         
Senator Bill Wielechowski                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Described the changes in version T of SB 98.                                                              
                                                                                                                                
ANDY MODEROW, Staff                                                                                                             
Senator Hollis French                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION  STATEMENT: Described  the changes  in version  D of  SB
104.                                                                                                                            
                                                                                                                                
PAT GREEN, State Government Relations Director                                                                                  
Wells Fargo Bank                                                                                                                
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Answered questions related to SB 104.                                                                     
                                                                                                                                
JEFF HARRIS, Loan Administration Manager                                                                                        
Wells Fargo Home Mortgage                                                                                                       
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Answered questions related to SB 104.                                                                     
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:31:21 PM                                                                                                                    
CHAIR  HOLLIS   FRENCH  called  the  Senate   Judiciary  Standing                                                             
Committee meeting  to order at 1:31  p.m. Present at the  call to                                                               
order were Senators Paskvan, Coghill, Wielechowski, and French.                                                                 
                                                                                                                                
                 SB  89-LEGISLATIVE ETHICS ACT                                                                              
                                                                                                                                
1:31:54 PM                                                                                                                    
CHAIR HOLLIS FRENCH  announced the consideration of  SB 89. [CSSB
89(STA), 27-LS0452\T was before the committee.]                                                                                 
                                                                                                                                
SENATOR JOHN COGHILL,  Sponsor of SB 89, stated  that this ethics                                                               
bill is a work in progress that  wound up in his hands. His chief                                                               
of  staff, Ms.  Moss, would  provide a  sectional analysis  after                                                               
which  he would  offer an  amendment. He  noted that  the current                                                               
version T removed some of the more contentious issues.                                                                          
                                                                                                                                
1:33:22 PM                                                                                                                    
RYNNIEVA MOSS, Chief  of Staff to Senator Coghill,  sponsor of SB
89, said  the only  changes in  Section 1 appear  on page  2. For                                                               
consistency with  AS 24.60.080, the phrase  "lawful gratuity" was                                                               
changed  to  "gift"  and  reference  to  the  compassionate  gift                                                               
statute, AS 24.60.075, was inserted.                                                                                            
                                                                                                                                
Section  2 attempts  to draw  a bright  line for  legislators and                                                               
staff  in dealing  with  constituents. It  says  that unless  the                                                               
legislator  is  an attorney,  the  legislative  office will  stop                                                               
giving assistance to a constituent  once the issue goes before an                                                               
administrative hearing  officer. Inadvertent ex parte  contact is                                                               
allowed.                                                                                                                        
                                                                                                                                
CHAIR FRENCH asked, if  he were to write a letter  on behalf of a                                                               
constituent  asking  for  a  fair hearing  on  a  permanent  fund                                                               
dividend  denial, if  the letter  would go  to an  administrative                                                               
hearing officer on the first level or to the department.                                                                        
                                                                                                                                
MS. MOSS  replied the  first level is  called an  informal denial                                                               
and at that stage he  could communicate with the department. Once                                                               
there's  a formal  denial  and a  request  for an  administrative                                                               
hearing, the legislator's office would need to step away.                                                                       
                                                                                                                                
CHAIR FRENCH asked for an example of  the point at which it is no                                                               
longer  acceptable for  a legislator  to act  in regard  to child                                                               
placement actions under the Office of Children's Services (OCS).                                                                
                                                                                                                                
MS.  MOSS replied  OCS has  worked with  legislative offices  all                                                               
during the process  even though it's actually a  court case. They                                                               
also  have a  legislative  liaison that  legislative offices  can                                                               
contact  directly.  An example  where  contact  would be  limited                                                               
beyond a  certain point would  be workers compensation.  Once the                                                               
issue reaches  the point of  having administrative  hearings, the                                                               
legislative office would have to  back away. With regard to child                                                               
support,  once the  matter  reaches the  point  of requesting  an                                                               
administrative hearing,  the legislative office can  no longer be                                                               
involved.                                                                                                                       
                                                                                                                                
1:36:43 PM                                                                                                                    
SENATOR  COGHILL  explained that  the  ethics  laws were  written                                                               
before  there  were administrative  law  judges  so this  was  an                                                               
attempt to clarify  the point at which a  legislative office must                                                               
step away  from a  constituent issue they'd  been working  on. He                                                               
noted that at one point  the Ethics Committee suggested a 10-hour                                                               
limit, but  he believes  this is  a better way.  It's okay  for a                                                               
legislative office to  help a constituent up to the  point of the                                                               
administrative decision,  but it's  not okay  to put  pressure on                                                               
the decision-maker.                                                                                                             
                                                                                                                                
CHAIR FRENCH  asked if legislators  could safely  send complaints                                                               
to a legislative liaison office  about the way their constituents                                                               
were being treated.                                                                                                             
                                                                                                                                
MS.  MOSS replied  she didn't  know  the answer,  but she  didn't                                                               
believe there was a protection under  the law. She added that the                                                               
biggest  problem  is  when  a   constituent  doesn't  inform  the                                                               
legislator or staff where they are in the process.                                                                              
                                                                                                                                
1:38:56 PM                                                                                                                    
CHAIR  FRENCH  asked if  the  ten-hour  provision was  an  ethics                                                               
opinion or in statute at one time.                                                                                              
                                                                                                                                
SENATOR COGHILL replied it was an ethics opinion.                                                                               
                                                                                                                                
CHAIR FRENCH asked if this would supersede that opinion.                                                                        
                                                                                                                                
SENATOR COGHILL answered yes.                                                                                                   
                                                                                                                                
SENATOR  WIELECHOWSKI  referred   to  the  workers'  compensation                                                               
example  and said  he reads  the bill  to say  that a  legislator                                                               
could call  a department director  to ask  about the status  of a                                                               
particular case.                                                                                                                
                                                                                                                                
MS. MOSS agreed.                                                                                                                
                                                                                                                                
SENATOR WIELECHOWSKI  asked for confirmation that  the legislator                                                               
couldn't contact the chief of adjudications.                                                                                    
                                                                                                                                
MS. MOSS replied  they could contact the person  that is handling                                                               
the workers' compensation case, but  not the hearing officer, the                                                               
attorney  for  the insurance  company  or  the attorney  for  the                                                               
constituent.                                                                                                                    
                                                                                                                                
SENATOR COGHILL added that the  idea was to keep legislators from                                                               
becoming  free   legal  advisors  unless  the   legislator  is  a                                                               
practicing attorney.                                                                                                            
                                                                                                                                
1:40:26 PM                                                                                                                    
MS.  MOSS clarified  that a  non-attorney can  handle a  workers'                                                               
compensation case, but once the  matter gets to an administrative                                                               
hearing  it's between  the constituent,  their attorney,  and the                                                               
division under challenge.                                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI asked where  it says the legislator couldn't                                                               
contact the attorney who represents the injured worker.                                                                         
                                                                                                                                
MS. MOSS replied  it doesn't say that specifically,  but once the                                                               
dispute goes  to a hearing  officer the legislative  office isn't                                                               
supposed  to contact  those parties.  Contacting a  constituent's                                                               
attorney would be considered ex parte contact.                                                                                  
                                                                                                                                
SENATOR WIELECHOWSKI asked where it says that in the bill.                                                                      
                                                                                                                                
MS.  MOSS replied  "ex parte"  is contacting  a party  in a  case                                                               
without going through the court.                                                                                                
                                                                                                                                
SENATOR WIELECHOWSKI said his understanding is different.                                                                       
                                                                                                                                
CHAIR FRENCH said he believes that  "ex parte" is between a party                                                               
and the judge without the other party being present.                                                                            
                                                                                                                                
SENATOR WIELECHOWSKI agreed.                                                                                                    
                                                                                                                                
SENATOR PASKVAN agreed,  and said the purpose  of that definition                                                               
of  "ex  parte"  is  to encourage  contact  between  the  parties                                                               
directly, but  while they're  trying to  work things  out neither                                                               
party can contact the judge without the other being present.                                                                    
                                                                                                                                
MS.  MOSS  added  that  the bill  also  requires  legislators  to                                                               
disclose any contact that is considered inappropriate.                                                                          
                                                                                                                                
1:42:51 PM                                                                                                                    
CHAIR FRENCH  summarized that  in this case  "ex parte"  would be                                                               
between a legislator and a  hearing officer, not a legislator and                                                               
an attorney representing the constituent.                                                                                       
                                                                                                                                
MS. MOSS  responded that when  she always asks  constituents that                                                               
contact  Senator Coghill's  office for  help if  they engaged  an                                                               
attorney.                                                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI  said he didn't  believe that  under current                                                               
law  or  if  this were  to  pass  that  it  would be  illegal  or                                                               
unethical for  a legislator to  contact a  constituent's attorney                                                               
to express concern about the timeliness of a hearing.                                                                           
                                                                                                                                
MS. MOSS said she appreciates having that on the record.                                                                        
                                                                                                                                
SENATOR COGHILL  recalled that the  administrative law  judge who                                                               
spoke to his office about two years ago had the same opinion.                                                                   
                                                                                                                                
CHAIR  FRENCH noted  that  Joyce Anderson  was  online to  answer                                                               
questions about ethics laws.                                                                                                    
                                                                                                                                
1:45:36 PM                                                                                                                    
MS.  MOSS  said Section  3  releases  the Ethics  Committee  from                                                               
having to compile disclosure form  statements, but it would still                                                               
have to maintain a record of  the forms that are available to the                                                               
public.                                                                                                                         
                                                                                                                                
Section  4  adds  "or  public  member of  the  committee"  to  AS                                                               
24.60.060(a), which  is the statute that  prohibits disclosure of                                                               
confidential information.                                                                                                       
                                                                                                                                
Sections  5 and  7  have  been reworded  to  make  it clear  that                                                               
legislators,  their   employees,  or  a  public   member  of  the                                                               
committee  may  not  accept  from   a  lobbyist  a  ticket  to  a                                                               
charitable event that is valued at more than $249.99.                                                                           
                                                                                                                                
SENATOR COGHILL added that it  also allows accepting a charitable                                                               
gift beyond that amount from  somebody other than a lobbyist, but                                                               
it must be reported and the event must be a sanctioned event.                                                                   
                                                                                                                                
MS. MOSS said  Section 7 changes the  reporting requirements from                                                               
30 days to  60 days for charitable gifts and  gifts of travel for                                                               
purposes of gaining legislative information.                                                                                    
                                                                                                                                
1:47:22 PM                                                                                                                    
SENATOR PASKVAN asked  if this changes what a  lobbyist may offer                                                               
to a legislator.                                                                                                                
                                                                                                                                
SENATOR COGHILL  answered no. It  changes charitable  events that                                                               
are specifically mentioned in statute.  The rewording attempts to                                                               
allow  a  charitable  gift  donation  from  people  who  are  not                                                               
lobbyists.                                                                                                                      
                                                                                                                                
1:48:44 PM                                                                                                                    
CHAIR  FRENCH observed  that it  was a  little confusing  to talk                                                               
about tickets  to a charitable  event in conjunction  with gifts,                                                               
and  asked   if  this   was  separate   from  the   general  gift                                                               
prohibition.                                                                                                                    
                                                                                                                                
MS. MOSS  responded it addresses  circumstances like  receiving a                                                               
ticket  to a  sanctioned charitable  event and  winning the  door                                                               
prize.                                                                                                                          
                                                                                                                                
SENATOR COGHILL  added that  a question came  up about  winning a                                                               
cruise at the "Thanksgiving in  March" event. In another instance                                                               
a legislator  was given a  gift from a  non-lobbyist to sit  at a                                                               
head  table,  which was  valued  at  more  than $400.  An  ethics                                                               
complaint was  lodged but  there was not  an ethical  problem. He                                                               
noted  that it  might  be a  problem if  it  wasn't a  sanctioned                                                               
event.                                                                                                                          
                                                                                                                                
MS.  MOSS explained  that  Section 8  allows  certain persons  to                                                               
request  a   waiver  from  disclosing   clients  or   making  any                                                               
disclosures that would violate state  or federal law or the state                                                               
or federal  constitution. The State  Affairs Committee  added the                                                               
language "or  a rule adopted  formally by a trade  or profession,                                                               
that state or  federal law requires the person  to follow." Thus,                                                               
certain  occupations  don't have  to  disclose  their sources  of                                                               
income from clients.                                                                                                            
                                                                                                                                
CHAIR  FRENCH asked  if it  is  an ethics  disclosure, an  Alaska                                                               
Public Offices Commission (APOC) disclosure, or both.                                                                           
                                                                                                                                
MS. MOSS replied it's an ethics disclosure.                                                                                     
                                                                                                                                
SENATOR   COGHILL  added   that  under   HIPPA  there   are  some                                                               
restrictions  on  confidentiality,  and there  was  some  concern                                                               
about  reporting  if  a  legislative  office  was  working  on  a                                                               
healthcare issue for a constituent.                                                                                             
                                                                                                                                
MS. MOSS said  Sections 9 and 13 were added  in the State Affairs                                                               
Committee,  and  state   that  if  someone  is   a  volunteer  or                                                               
educational trainee  for 30 days  they would be expected  to take                                                               
an ethics class.                                                                                                                
                                                                                                                                
Sections 10 and  11 make reference to the new  statute in Section                                                               
12.                                                                                                                             
                                                                                                                                
Section 12  is a  new section  of law  that deals  with alternate                                                               
members.  It adds  an alternate  for a  public member  and allows                                                               
them  to participate  in the  full proceeding  once they've  been                                                               
selected.                                                                                                                       
                                                                                                                                
SENATOR COGHILL said  it became apparent that it  would be easier                                                               
to  make  a  quorum  for  the public  members  if  there  was  an                                                               
alternate.  A  decision was  made  that  once the  alternate  was                                                               
engaged  in  a particular  ethical  question  they should  remain                                                               
until  the   conclusion.  That  is   true  for  the   public  and                                                               
legislative alternates.                                                                                                         
                                                                                                                                
1:53:42 PM                                                                                                                    
MS. MOSS said  Section 14 changes the  definition of "legislative                                                               
employee." It  clarifies that hourly  employees are  not included                                                               
and are not required to take ethics training.                                                                                   
                                                                                                                                
1:54:28 PM                                                                                                                    
SENATOR COGHILL observed that the  bill was a benign housekeeping                                                               
matter without  his amendment, which addresses  how to reasonably                                                               
and  properly  allow  legislators   to  participate  in  partisan                                                               
political activities  while on state travel.  Generally speaking,                                                               
most of the meetings that  legislators hold outside of Juneau are                                                               
held  in Anchorage  or Fairbanks.  Legislators  from those  urban                                                               
areas  may   attend  partisan   events  after   conducting  state                                                               
business,  but those  from out  of town  cannot. He  said he  was                                                               
trying   to  find   a   reasonable   solution  without   allowing                                                               
legislators to  use state money  to campaign. That's  the one-way                                                               
valve. "We  want them to  do one thing  nobly, and we  don't want                                                               
them to use it improperly."                                                                                                     
                                                                                                                                
1:56:37 PM                                                                                                                    
SENATOR COGHILL moved Amendment 1, labeled 27-LS0452\T.1.                                                                       
                                                                                                                                
                          AMENDMENT 1                                                                                         
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                   BY SENATOR COGHILL                                                                 
          TO:  CSSB 89(STA)                                                                                                     
                                                                                                                                
     Page 1, line 7, following "instances;":                                                                                  
          Insert   "allowing  legislators   and  legislative                                                                  
     employees, in certain circumstances, to participate in                                                                   
     partisan political activity while on state travel;"                                                                      
                                                                                                                                
     Page 5, following line 26:                                                                                                 
          Insert new bill sections to read:                                                                                     
       "* Sec. 3. AS 24.60.030 is amended by adding a new                                                                   
     subsection to read:                                                                                                        
               (j)  Notwithstanding the limitations under                                                                       
          (a)(2),  (a)(4),  and  (c)  of  this  section  and                                                                    
          subject  to   other  state  or  federal   laws,  a                                                                    
          legislator  or  legislative  employee  who  is  on                                                                    
          state   travel   may   participate   in   partisan                                                                    
          political  activity, including  campaign activity,                                                                    
          if                                                                                                                    
                    (1)  the participation is incidental to                                                                     
          the purpose of the travel;                                                                                            
                    (2)  the legislator or the legislative                                                                      
          employee  does not  use or  authorize  the use  of                                                                    
          state resources to pay for the activity; and                                                                          
                    (3)  the legislator or legislative                                                                          
         employee does not participate in the activity                                                                          
                         (A)  during a normal workday                                                                           
               between 8:00 a.m. and 5:00 p.m., excluding                                                                       
               meal breaks;                                                                                                     
                         (B)  on a state or municipal                                                                           
               election day;                                                                                                    
                         (C)       during   the    30   days                                                                    
               immediately  preceding an  election in  which                                                                    
               the    participating   legislator    or   the                                                                    
               legislator   for   whom   the   participating                                                                    
               employee  works is  a candidate  for elective                                                                    
               office; or                                                                                                       
                         (D)  by fund raising for a                                                                             
               political party or campaign.                                                                                     
       * Sec. 4. AS 24.60.031 is amended by adding a new                                                                      
     subsection to read:                                                                                                        
                                                                                                                                
               (d)  Notwithstanding  the  limitations  under                                                                    
          (a) and (b)  of this section and  subject to other                                                                    
          state   or   federal   laws,   a   legislator   or                                                                    
          legislative employee  who is  on state  travel may                                                                    
          participate   in   partisan  political   activity,                                                                    
          including campaign activity, if                                                                                       
                    (1)  the participation is incidental to                                                                     
          the purpose of the travel;                                                                                            
                    (2)  the legislator or the legislative                                                                      
          employee does not use or authorize the use of                                                                         
          state resources to pay for the activity; and                                                                          
                    (3)  the legislator or legislative                                                                          
         employee does not participate in the activity                                                                          
                         (A)  during a normal workday                                                                           
               between  8:00 a.m.  and 5:00  p.m., excluding                                                                    
               meal breaks;                                                                                                     
                         (B)  on a state or municipal                                                                           
               election day;                                                                                                    
                         (C)       during   the    30   days                                                                    
               immediately  preceding an  election in  which                                                                    
               the    participating   legislator    or   the                                                                    
               legislator   for   whom   the   participating                                                                    
               employee  works is  a candidate  for elective                                                                    
               office; or                                                                                                       
                         (D)  by fund raising for a                                                                             
               political party or campaign."                                                                                    
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 13, following line 24:                                                                                                
          Insert a new bill section to read:                                                                                    
       "* Sec. 17. AS 24.60.990(a) is amended by adding a                                                                   
     new paragraph to read:                                                                                                     
                    (17)  "state travel" means travel with                                                                      
          transportation or overnight lodging that is                                                                           
          provided or paid for with state resources."                                                                           
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
CHAIR FRENCH objected and opened discussion on the amendment.                                                                   
                                                                                                                                
SENATOR COGHILL said he would  understand if the Chair decided to                                                               
set the bill aside for  more in depth consideration next session.                                                               
He  explained that  the amendment  addresses AS  24.60.030, which                                                               
talks  about ethical  management, and  AS 24.60.031,  which talks                                                               
about the management  of fundraising. He read  the amendment into                                                               
the record  and the following  legal definition  of "incidental:"                                                               
"Subordinate to  something of greater importance;  having a minor                                                               
role." He  was trying to say  that there are reasons  to prohibit                                                               
the  activity,   but  there  should   be  an   accommodation  for                                                               
participation  in partisan  political  activity  that is  clearly                                                               
incidental.  Whereas  fund raising  for  any  political party  or                                                               
campaign while on  the state dime is  absolutely prohibited. This                                                               
sets  the bar  and clarifies  that the  activity has  to be  very                                                               
small in comparison  to the activity for which  the legislator is                                                               
using state travel.                                                                                                             
                                                                                                                                
SENATOR COGHILL said if he goes  to Anchorage on state travel and                                                               
is called by  a radio program and gives his  opinion, he could be                                                               
charged with participating in partisan  activity when he's really                                                               
just articulating his beliefs. The  question needs to be answered                                                               
and the forgoing are the criteria he set.                                                                                       
                                                                                                                                
2:03:25 PM                                                                                                                    
CHAIR FRENCH said  he appreciates the thought that  went into the                                                               
amendment and shares  some of the concerns.  Leveling a complaint                                                               
that a  legislator has  violated the ethics  rules is  a powerful                                                               
complaint. It will be discussed  further over the summer and next                                                               
year.  Some  of the  questions  that  arise  relate to  the  size                                                               
differences in the  legislative districts and the  sort of things                                                               
a legislator should  be able to do when he/she  is paid to travel                                                               
inside his/her own district. Some  things could conceivably be an                                                               
ethics violation under  the current rules and he's  not sure they                                                               
should be. Is it a violation  if you're traveling to Anchorage on                                                               
state  business and  you update  your Facebook  page relating  to                                                               
your campaign when you're in your  hotel room at night? Could you                                                               
call into  a Fairbanks radio  show from Anchorage  promoting your                                                               
campaign while  on state  travel? He  reiterated that  he'd spend                                                               
time on the question between now and next year.                                                                                 
                                                                                                                                
2:05:54 PM                                                                                                                    
SENATOR  WIELECHOWSKI  stated  agreement.   If  a  legislator  is                                                               
traveling  to Anchorage  and gets  a  call from  a radio  station                                                               
asking  about  partisan  activities,   does  it  matter  if  that                                                               
legislator is  in Anchorage  or Fairbanks?  The problem  has been                                                               
how to  define where  that line is.  The State  Affairs Committee                                                               
couldn't figure  it out, but with  further dialog there may  be a                                                               
solution.                                                                                                                       
                                                                                                                                
SENATOR COGHILL  said he assumes  that some legislators  and some                                                               
people that watch legislators will  be bad actors, but others are                                                               
genuinely concerned  about ethical  behavior. It's a  balance and                                                               
he's trying to  figure out the clearest rule  possible. Trying to                                                               
define  motives is  not  the answer,  but  defining action  items                                                               
helps establish  bright lines  so that  legislators know  what is                                                               
expected  of them  as partisan  people. It  also helps  those who                                                               
genuinely want to keep legislators  ethically accountable for the                                                               
use of state resources.                                                                                                         
                                                                                                                                
He said his  district includes the Richardson  Highway, the Glenn                                                               
Highway,  the  Denali  Highway,  and the  coast  from  Valdez  to                                                               
Whittier  so he  can  be  anywhere in  those  communities and  be                                                               
totally forbidden  from going to  a Republican event  even though                                                               
he had  traveled 800  miles to visit  three other  communities in                                                               
the district. It's painful to be unable to participate.                                                                         
                                                                                                                                
Under  the current  statutes, there  is an  exact prohibition  on                                                               
partisan  activity anytime  a legislator  is on  the state  dime.                                                               
This  leaves  legislators  vulnerable  to  people  who  have  bad                                                               
intentions. The  Ethics Committee has discussed  this extensively                                                               
over the years and legislators  have repeatedly asked for relief.                                                               
He asked the committee to  carefully consider the amendment; it's                                                               
his best effort to define what is and is not ethical.                                                                           
                                                                                                                                
SENATOR COGHILL  asked the  Chair how he  wanted to  proceed with                                                               
the amendment and the bill itself.                                                                                              
                                                                                                                                
2:11:19 PM                                                                                                                    
SENATOR  PASKVAN  commented  that  he looks  forward  to  further                                                               
healthy debate on the matter  and believes that this committee is                                                               
best  suited  for this  substantive  discussion.  It's a  complex                                                               
subject  that requires  careful  consideration  from both  sides.                                                               
Legislators should always  act ethically, but he  doesn't want to                                                               
give unfair  advantage to someone  who can use private  wealth to                                                               
scam the system, knowing that  the person they're attacking can't                                                               
fight back because they were traveling at state expense.                                                                        
                                                                                                                                
SENATOR  COGHILL said  he's  passionate that  this  is not  about                                                               
fairness; it's  about what is ethical.  Right now you can't  be a                                                               
partisan  politician   while  on  the  state   dime.  That's  not                                                               
reasonable and doesn't address the ethical question.                                                                            
                                                                                                                                
CHAIR FRENCH  stated that  he'd leave matters  as they  are; both                                                               
the bill and  the amendment are in front of  the committee and he                                                               
was maintaining his objection.                                                                                                  
                                                                                                                                
2:14:10 PM                                                                                                                    
SENATOR COGHILL  said his  office was prepared  to work  with the                                                               
committee and was open to suggestions.                                                                                          
                                                                                                                                
CHAIR FRENCH announced he would hold SB 89 in committee.                                                                        
                                                                                                                                
              SB  98-BIOMETRIC INFORMATION FOR ID                                                                           
                                                                                                                                
2:14:40 PM                                                                                                                    
CHAIR FRENCH announced  the consideration of SB 98  and asked for                                                               
a motion to adopt the proposed committee substitute (CS).                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI  moved to  adopt CS for  SB 98,  labeled 27-                                                               
LS0661\T, as the working document.                                                                                              
                                                                                                                                
CHAIR FRENCH objected for discussion purposes.                                                                                  
                                                                                                                                
SENATOR WIELECHOWSKI asked his staff to describe the changes.                                                                   
                                                                                                                                
2:15:35 PM                                                                                                                    
MICHAEL CAUFIELD,  Staff to Senator  Wielechowski, sponsor  of SB
98, described the following changes:                                                                                            
                                                                                                                                
Page 2,  lines 17-19, contains  new language that  clarifies that                                                               
occupational exams are also educational  exams, and that the exam                                                               
administrator  may  determine   what  constitutes  an  acceptable                                                               
alternative  ID. He  noted that  some questions  may still  arise                                                               
with this section.                                                                                                              
                                                                                                                                
Page 3,  line 18, the phrase  "agents of the state,"  was removed                                                               
to ensure  that the state  is exempt  from liability, but  not an                                                               
organization that contracts with the state.                                                                                     
                                                                                                                                
Page  3,  lines  29-30,  creates  an  exemption  for  voice  data                                                               
collected for  quality assurance purposes, and  the exemption for                                                               
"facial images in a biometric system" was removed.                                                                              
                                                                                                                                
Page  3,  lines  1-2,  "facial images"  was  changed  to  "facial                                                               
mapping"  in the  redefinition  of "biometric  data"  on page  4,                                                               
lines 1-2.                                                                                                                      
                                                                                                                                
Page 4, lines 25-26, "facial mapping"  was defined as "the use of                                                               
digital  technology to  measure the  features of  an individual's                                                               
face." This  was done to  ensure that pictures cannot  be defined                                                               
as biometric information.                                                                                                       
                                                                                                                                
MR.  CAUFIELD  said  he understands  there  might  be  additional                                                               
issues with the alternate identification.                                                                                       
                                                                                                                                
2:18:46 PM                                                                                                                    
CHAIR  FRENCH referenced  the alternate  identification provision                                                               
on page  2, lines 12-19, and  asked what would happen  if someone                                                               
administering  the LSAT  would settle  for nothing  other than  a                                                               
fingerprint for identification.                                                                                                 
                                                                                                                                
MR.   CAUFIELD   replied   the   current   draft   requires   the                                                               
administrator    to   accept    another   acceptable    form   of                                                               
identification. He  acknowledged that it could  present a problem                                                               
if the  administrator said  no other  form of  identification was                                                               
acceptable.  Proposed   amendment  27-LS0661\T.1   addresses  the                                                               
issue.                                                                                                                          
                                                                                                                                
2:20:25 PM                                                                                                                    
SENATOR WIELECHOWSKI  clarified that  version T says  the company                                                               
that  administers  the exam  cannot  require  someone to  provide                                                               
biometric   information  for   identification  if   they  provide                                                               
alternate  identification  that  is   acceptable  to  the  person                                                               
administering the occupational exam.  The intent of the provision                                                               
is that  something like a  library card would not  be acceptable,                                                               
but a  passport or driver's  license clearly would  be acceptable                                                               
alternate identification.                                                                                                       
                                                                                                                                
CHAIR FRENCH  asked what would  happen if the  LSAT administrator                                                               
would only  accept a fingerprint as  acceptable identification. A                                                               
passport was not acceptable.                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI  replied that  would be  a violation  of the                                                               
law.                                                                                                                            
                                                                                                                                
SENATOR PASKVAN said he worries  that a national licensing entity                                                               
will say  it won't allow the  exam to be administered  in Alaska.                                                               
It would be  unfortunate to make it so  restrictive that national                                                               
testers see that  the only alternative is to leave  the state. He                                                               
noted that the amendment he drafted tries to accommodate that.                                                                  
                                                                                                                                
CHAIR FRENCH asked if the amendment pertains to this section.                                                                   
                                                                                                                                
SENATOR COGHILL  asked if  it would  be too  broad to  reword the                                                               
provision to say "generally accepted identification."                                                                           
                                                                                                                                
CHAIR FRENCH  suggested he hold  the thought until  the amendment                                                               
was considered.                                                                                                                 
                                                                                                                                
2:26:51 PM                                                                                                                    
SENATOR  PASKVAN  moved  to  bring  Amendment  1,  27-LS0661\T.1,                                                               
before the committee for discussion purposes.                                                                                   
                                                                                                                                
                          AMENDMENT 1                                                                                         
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                   BY SENATOR PASKVAN                                                                 
                                                                                                                                
                                                                                                                                
          TO:  CSSB 98( ), Draft Version "T"                                                                                    
                                                                                                                                
     Page 2, line 12:                                                                                                           
          Delete "If"                                                                                                           
          Insert "(a) Except as provided in (b) of this                                                                         
          section, if"                                                                                                          
                                                                                                                                
     Page 2, line 17, following "examination.":                                                                                 
          Insert new material to read:                                                                                          
               "(b)  If  the  collection  of  the  biometric                                                                    
               information  of   an  individual   taking  an                                                                    
               occupational   examination  is   legitimately                                                                    
               necessary  to establish  the security  of the                                                                    
               occupational  examination,   the  person  who                                                                    
               administers the  occupational examination may                                                                    
               collect  the biometric  information, but  the                                                                    
               person shall  comply with the  collection and                                                                    
               other  requirements  of   this  chapter  with                                                                    
               regard to the  biometric information, and the                                                                    
               person    shall    require    the    person's                                                                    
               contractor, if  any, to agree to  comply with                                                                    
               the  collection  and  other  requirements  of                                                                    
               this  chapter with  regard  to the  biometric                                                                    
               information.                                                                                                     
                    (c)"                                                                                                        
                                                                                                                                
SENATOR PASKVAN said  the purpose of the amendment  is to address                                                               
the problems  that administrators of  the CPA exam have  had with                                                               
individuals  on the  East coast  transferring  test questions  to                                                               
individuals  on  the   West  coast  hours  before   the  test  is                                                               
administered. The amendment says  that if collection of biometric                                                               
information  is  deemed  legitimately   necessary  to  secure  an                                                               
occupational examination, the exam  administrator may collect the                                                               
biometric information  in compliance with the  other requirements                                                               
of the  bill. This is a  compromise and a better  solution than a                                                               
blanket prohibition, he said.                                                                                                   
                                                                                                                                
2:30:10 PM                                                                                                                    
SENATOR  WIELECHOWSKI  said he  appreciates  the  intent, but  he                                                               
objects to  the amendment.  There are other  ways to  ensure that                                                               
the person taking  the test is the singular  person credited with                                                               
taking the test. Proctors are  hired to watch individuals who are                                                               
taking an examination, including  following them to the bathroom.                                                               
As  written  this  is  a  good   bill  that  provides  a  lot  of                                                               
protections for Alaskans, he stated.                                                                                            
                                                                                                                                
2:32:01 PM                                                                                                                    
SENATOR  COGHILL  said  he  can  understand  both  sides  of  the                                                               
question, but  is seems as though  the test taker is  being asked                                                               
to surrender a lot in order  to secure the integrity of the test.                                                               
He  wondered  if  the  test   administrators  shouldn't  be  more                                                               
responsible for  ensuring that integrity,  and observed  that the                                                               
amendment   appeared  to   double  the   reasons  for   the  test                                                               
administrators to collect that information.                                                                                     
                                                                                                                                
SENATOR  PASKVAN   moved  to  adopt  Amendment   1,  labeled  27-                                                               
LS0661\T.1.                                                                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI objected.                                                                                                  
                                                                                                                                
2:34:27 PM                                                                                                                    
A roll  call was  taken. Amendment  1, 27-LS0661\T.1,  failed 2:2                                                               
with Senator  Paskvan and Senator  French voting yea  and Senator                                                               
Coghill and Senator Wielechowski voting nay.                                                                                    
                                                                                                                                
CHAIR FRENCH  referred to  page 3,  lines 11-16,  Sec. 18.14.080,                                                               
right of action, and asked if  the idea is to penalize people who                                                               
lose biometric information.                                                                                                     
                                                                                                                                
MR. CAUFIELD replied  it addresses people who  lose or distribute                                                               
biometric information.                                                                                                          
                                                                                                                                
CHAIR FRENCH  asked for a  discussion about the  policy rationale                                                               
for subsection  (b), which  immunizes the  state against  a claim                                                               
for damages for lost biometric information.                                                                                     
                                                                                                                                
SENATOR  WIELECHOWSKI  told  the  committee that  the  state  was                                                               
initially concerned  that if the information  was distributed the                                                               
state  could potentially  be liable  for millions  of dollars  in                                                               
damages. He  said he isn't  a fan of  immunizing the state  so it                                                               
was  a tough  call, but  if that  provision hadn't  been included                                                               
it's likely  a fiscal  note would have  been attached  making the                                                               
bill more  difficult to pass. It  would still be illegal  for the                                                               
state  to disclose  the information,  but an  individual couldn't                                                               
sue for  damages if  that did  happen. He  reiterated that,  as a                                                               
whole, it's a  good bill that moves Alaska  forward on protecting                                                               
peoples' private information.                                                                                                   
                                                                                                                                
2:37:28 PM                                                                                                                    
CHAIR  FRENCH observed  that in  a  number of  places the  record                                                               
clearly  reflects the  sponsor's  reluctance to  offer the  state                                                               
immunity provisions. He expressed  similar concern, and suggested                                                               
that  this  is  one  step  forward  and  perhaps  there  will  be                                                               
opportunity to revisit that provision in the future.                                                                            
                                                                                                                                
SENATOR  PASKVAN  expressed concerned  that  the  state is  being                                                               
provided  absolute  immunity  regardless  of  how  egregious  its                                                               
conduct might or might not be. It's problematic.                                                                                
                                                                                                                                
2:39:07 PM                                                                                                                    
CHAIR  FRENCH referenced  page  2, line  3,  Sec. 18.14.020,  and                                                               
asked  if   the  penalties   for  disclosing,   transferring,  or                                                               
distributing  collected biometric  information  are contained  in                                                               
Sec.  18.14.080. It's  a civil  violation  for which  there is  a                                                               
financial penalty.                                                                                                              
                                                                                                                                
MR. CAUFIELD answered yes.                                                                                                      
                                                                                                                                
CHAIR  FRENCH asked  if a  "bad  apple" state  employee would  be                                                               
immunized  if  he were  to  intentionally  sell another  person's                                                               
biometric information.                                                                                                          
                                                                                                                                
MR. CAUFIELD replied they would  be immunized if they were acting                                                               
as an agent of the state.                                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI  clarified that  if they were  acting within                                                               
their duties as a state employee  they would be immunized, but if                                                               
they  were  acting  outside  their state  duties  they  would  be                                                               
liable.                                                                                                                         
                                                                                                                                
CHAIR  FRENCH  commented that  they  could  be  on the  hook  for                                                               
$100,000.                                                                                                                       
                                                                                                                                
2:40:32 PM                                                                                                                    
SENATOR PASKVAN  pointed out that  Sec. 18.14.080(b), on  page 3,                                                               
line 17, gives  an employee of the state immunity  for damages, a                                                               
penalty, or both for violations under this chapter.                                                                             
                                                                                                                                
SENATOR  WIELECHOWSKI responded  he suspects  there are  creative                                                               
lawyers  that could  figure out  violations outside  this chapter                                                               
for a state employee who did something like that.                                                                               
                                                                                                                                
SENATOR  PASKVAN said  his  perception is  that  the immunity  is                                                               
broad.                                                                                                                          
                                                                                                                                
SENATOR WIELECHOWSKI said  it's not the intent to  ban some other                                                               
common law claim, tort claim, or claim under another statute.                                                                   
                                                                                                                                
2:41:55 PM                                                                                                                    
CHAIR  FRENCH  suggested that  the  general  concern is  probably                                                               
aimed at  private enterprise collecting  the material,  not state                                                               
collection.                                                                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI  suggested amending the bill  to address the                                                               
issue that  Senator Coghill spoke  to about  acceptable alternate                                                               
identification.  On   page  2,  line   16,  following   the  word                                                               
"information"  delete the  remainder of  the sentence  and insert                                                               
"if   the  individual   provides  generally   accepted  alternate                                                               
identification  to  the  person  administering  the  occupational                                                               
examination." It's not a substantive change.                                                                                    
                                                                                                                                
At ease from  2:44 p.m. to 2:45 p.m. to  write down the suggested                                                               
amendment.                                                                                                                      
                                                                                                                                
2:45:02 PM                                                                                                                    
CHAIR  FRENCH  reconvened  the meeting  and  announced  that  the                                                               
amendment  would  be  put  aside.   He  asked  the  will  of  the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI moved to report  CSSB 98( ), version T, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note                                                                                                                            
                                                                                                                                
CHAIR  FRENCH  announced  that without  objection,  CSSB  98(JUD)                                                               
moved from the Senate Judiciary Standing Committee.                                                                             
                                                                                                                                
At ease from 2:46 p.m. to 2:47 p.m.                                                                                             
                                                                                                                                
           SB 104-MANUFACTURED HOMES AS REAL PROPERTY                                                                       
                                                                                                                                
2:47:20 PM                                                                                                                    
CHAIR FRENCH announced the consideration of SB 104 and asked for                                                                
a motion to adopt the proposed committee substitute (CS),                                                                       
version D.                                                                                                                      
                                                                                                                                
2:47:44 PM                                                                                                                    
SENATOR WIELECHOWSKI moved to adopt CS for SB 104, labeled 27-                                                                  
LS0467\D, as the working document.                                                                                              
                                                                                                                                
CHAIR FRENCH objected for discussion purposes.                                                                                  
                                                                                                                                
ANDY MODEROW, Staff to Senator French, described the changes as                                                                 
follows:                                                                                                                        
                                                                                                                                
     Sec. 40.17.125(a)  was modified so that  the recorder's                                                                    
     office won't  have to  determine whether  an affixation                                                                    
     or  severance affidavit  meets requirements  under Sec.                                                                    
     34.85,  which relates  to how  a  manufactured home  is                                                                    
     affixed  to  real  property. Under  AS  40.17.035,  the                                                                    
     recorder's  office cannot  be  tasked with  determining                                                                    
     whether  the   contents  of  a  document   are  legally                                                                    
     sufficient  to achieve  the purposes  of the  document;                                                                    
     instead, as clarified under  the regulation, the person                                                                    
     submitting  documents for  recording  must ensure  that                                                                    
     the  prerequisites  for  recording  as  established  by                                                                    
     regulation and statute are met.                                                                                            
                                                                                                                                
CHAIR FRENCH  noted that  Whitney Brewster  with the  Division of                                                               
Motor Vehicles,  Vicky Backus with  the State  Recorder's Office,                                                               
Jeff  Harris with  Wells Fargo,  and Pat  Green with  Wells Fargo                                                               
were available online to answer questions.                                                                                      
                                                                                                                                
MR. MODEROW continued as follows:                                                                                               
                                                                                                                                
     Sec.  40.17.125(b) received  two minor  changes in  the                                                                    
     CS.  The  first  modifies  the   action  taken  by  the                                                                    
     recorder on  the recording affidavit,  changing "write"                                                                    
     to "place"  on page  20, line  30, of  the legislation.                                                                    
     This  change  reflects  that the  recording  office  no                                                                    
     longer writes  on recorded  affidavits -  instead, they                                                                    
     affix bar  codes that contain relevant  information. In                                                                    
     addition, the  original draft required an  affidavit to                                                                    
     be  recorded   in  land  records;   in  the   CS,  Sec.                                                                    
     40.17.125(b) changes  "in land records" to  "the public                                                                    
     record,"  to  match  where   the  recorder  files  land                                                                    
     records today.                                                                                                             
                                                                                                                                
     Sec.  40.17.125(c) in  the original  draft (version  I)                                                                    
     was  removed  in the  CS.  This  language required  the                                                                    
     recorder's  office to  automatically  send a  certified                                                                    
     copy of  the recorded affidavit to  a person designated                                                                    
     on an  affidavit. This doesn't match  current recording                                                                    
     office  procedures,  which  require  an  individual  to                                                                    
     request and pay for certified copies of affidavits.                                                                        
                                                                                                                                
     In regards  to this last change,  conforming amendments                                                                    
     were made  to Sec. 34.85.060(12) and  Sec. 34.85.120(7)                                                                    
     in Section  26 of  the CS to  remove references  to the                                                                    
     automatic   mailing  of   a  certified   affidavit.  In                                                                    
     addition,  Sec. 28.10.266(7)  and Sec.  28.10.266(8) of                                                                    
     the  CS,  found  in  Section  16  on  page  10  of  the                                                                    
     legislation, were modified to  ensure that an affidavit                                                                    
     complies with affixation  requirements under Sec. 34.85                                                                    
     of the legislation.                                                                                                        
                                                                                                                                
     Page 6, Section 16, of  the original draft required DMV                                                                    
     to notify a primary  lienholder of completed conversion                                                                    
     procedures  when the  conversion involved  cancelling a                                                                    
     manufacturer's  certificate  of  origin or  title.  But                                                                    
     under Sec.  28.10.267, a  conversion cannot  take place                                                                    
     until  a manufactured  home is  free and  clear of  all                                                                    
     liens  and encumbrances.  Because a  primary lienholder                                                                    
     would never  exist through a conversion  procedure, the                                                                    
     lienholder  notification  provisions were  replaced  in                                                                    
     the  CS  with language  that  allows  the applicant  to                                                                    
     indicate  one person,  in addition  to the  owner, that                                                                    
     receives    written   acknowledgement    of   completed                                                                    
     conversions  under Sec.  28.10.262-265. This  change is                                                                    
     reflected    in   Sec.    28.10.262(c),   28.10.263(c),                                                                    
     28.10.264(d),  28.10.265(c), 28.10.266(12),  of version                                                                    
     D.                                                                                                                         
                                                                                                                                
2:51:31 PM                                                                                                                    
SENATOR PASKVAN referenced  page 15, lines 14-20,  and asked what                                                               
the lessor  of the real  property consents to, and  what interest                                                               
in  the real  property the  lessor of  the park  gives up  or has                                                               
subject to the real estate loss.                                                                                                
                                                                                                                                
MR. MODEROW deferred to the Wells Fargo representative.                                                                         
                                                                                                                                
2:52:34 PM                                                                                                                    
PAT  GREEN,  State  Government Relations  Director,  Wells  Fargo                                                               
Bank,  said  this legislation  is  primarily  intended for  those                                                               
manufactured home owners that also own the land under the home.                                                                 
                                                                                                                                
CHAIR  FRENCH asked  Mr. Harris  if he  could tell  the committee                                                               
what the lessor of the real  property is consenting to under Sec.                                                               
34.85.040(2).                                                                                                                   
                                                                                                                                
2:53:17 PM                                                                                                                    
JEFF  HARRIS,  Loan  Administration  Manager,  Wells  Fargo  Home                                                               
Mortgage, Anchorage, AK, explained that  an individual that has a                                                               
home in  a mobile home park  would need to move  the manufactured                                                               
home onto a  piece of land they  own in order to affix  it, get a                                                               
fee  simple transaction,  and get  a  mortgage on  the home.  The                                                               
homeowner must own the land and home together get a mortgage.                                                                   
                                                                                                                                
CHAIR FRENCH  asked if he  agrees that a  mobile home owner  in a                                                               
park could get a mortgage if he  had a 20-year lease and the park                                                               
owner consents.                                                                                                                 
                                                                                                                                
MR. HARRIS replied  there's less risk with a  long-term lease, so                                                               
that option was put into the legislation.                                                                                       
                                                                                                                                
SENATOR   PASKVAN  asked   if  deficiency   judgments  would   be                                                               
prohibited, assuming that any foreclosure would be non-judicial.                                                                
                                                                                                                                
MR. GREEN answered  yes. His understanding is that,  in the event                                                               
of default,  all the normal real  property foreclosure procedures                                                               
would be followed.                                                                                                              
                                                                                                                                
MR. HARRIS agreed; the foreclosure  proceedings would be the same                                                               
as for a "stick-built" home                                                                                                     
                                                                                                                                
CHAIR FRENCH announced he would hold SB 104 in committee.                                                                       
                                                                                                                                
2:58:05 PM                                                                                                                    
Chair French thanked the committee for  the work it did this year                                                               
and adjourned the Senate Judiciary  Standing Committee meeting at                                                               
2:58 p.m.                                                                                                                       

Document Name Date/Time Subjects