HB 221-MORTGAGE LENDING REGULATION                                                                                            
                                                                                                                                
4:44:47 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE   BILL  NO.   221,  "An   Act  relating   to  the   state's                                                               
participation  in  the   federal  Nationwide  Mortgage  Licensing                                                               
System  and  Registry, and  to  mortgage  lending regulation  and                                                               
licensing; and providing for an effective date."                                                                                
                                                                                                                                
4:45:04 PM                                                                                                                    
                                                                                                                                
TYSON  FICK, Legislative  Liaison,  Office  of the  Commissioner,                                                               
Department  of   Commerce,  Community,  &   Economic  Development                                                               
(DCCED), introduced himself.                                                                                                    
                                                                                                                                
4:45:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  made  a  motion   to  adopt  the  committee                                                               
substitute  (CS)  for  HB  221  labeled  26-LS0856\R,  Bannister,                                                               
4/9/09.[Version R was before the committee.]                                                                                    
                                                                                                                                
CHAIR OLSON objected for purpose of discussion.                                                                                 
                                                                                                                                
4:45:47 PM                                                                                                                    
                                                                                                                                
MR.  FICK explained  that HB  221 makes  a single  change to  the                                                               
state's mortgage  licensing law.   He  indicated that  two things                                                               
need  to happen  in order  for Alaska's  law to  comply with  the                                                               
federal Secure  and Fair Enforcement  for Mortgage  Licensing Act                                                               
of  2008  (SAFE Act).    The  SAFE  Act  requires all  states  to                                                               
implement a  mortgage law  that confirms  to its  requirements by                                                               
July 30,  2009, and that all  states use a national  database for                                                               
licensing mortgage loan  originators.  This bill  would allow the                                                               
Department  of Commerce,  Community,  &  Economic Development  to                                                               
participate in the National Mortgage  Licensing System (NMLS) and                                                               
use their  database, which  is the time  sensitive element.   The                                                               
fiscal note provides for the one-time  fee of $50,000 to join the                                                               
NMLS, and $20,000 for computer system upgrades.                                                                                 
                                                                                                                                
4:46:36 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  commented that  this bill  has been  a collaborative                                                               
effort between his  office and Representative Lynn's  office.  He                                                               
stated his intention  to continue to work on  the remaining issue                                                               
during the interim.  He explained that the issue is complex.                                                                    
                                                                                                                                
4:47:08 PM                                                                                                                    
                                                                                                                                
MR. FICK mentioned that the sunset  date in the bill sends an odd                                                               
message  to  the HUD  since  the  state  will join  the  national                                                               
database, but will stop using the database in 2012.                                                                             
                                                                                                                                
4:48:21 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  removed his  objection.  [Version  R was  before the                                                               
committee.]                                                                                                                     
                                                                                                                                
REPRESENTATIVE BUCH  made a motion to  adopt Conceptual Amendment                                                               
1, on page  1, line 14, to  change the date from July  1, 2012 to                                                               
July 1, 2014.   There being no objection,  Conceptual Amendment 1                                                               
was adopted                                                                                                                     
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 221.                                                                                     
                                                                                                                                
REPRESENTATIVE COGHILL  moved to report the  committee substitute                                                               
(CS)  for  HB 221,  Version  26-LS0856\R,  Bannister, 4/9/09,  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the  accompanying fiscal  note.   There being  no objection,  the                                                               
CSHB  221(L&C) was  reported from  the House  Labor and  Commerce                                                               
Standing Committee.