SB 104-MANUFACTURED HOMES AS REAL PROPERTY  1:34:42 PM CHAIR FRENCH announced the consideration of SB 104 and noted that this was the third hearing. Speaking as the sponsor, he explained that the bill establishes a procedure to convert a manufactured home to real property by affixing it to a permanent foundation on land owned by the individual. This will afford the homeowner all the benefits of home ownership, including better mortgage interest rates. These conversions involve the Division of Motor Vehicles, the Department of Natural Resources Recorders Office and the banking industry, which accounts for the large number of provisions in the bill. He asked for a motion to adopt version D committee substitute (CS). SENATOR WIELECHOWSKI moved to adopt CSSB 104, labeled 27- LS0467\D, as the working document. SENATOR COGHILL said he had no objection, but wanted to hear an explanation of the differences between version D and the original version [I]. CHAIR FRENCH announced that without objection, version D was before the committee. He explained the following changes in Section 27, relating to recording affidavits related to manufactured homes: 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. 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. 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. 1:40:16 PM CHAIR FRENCH noted that George Ginsberg, outside counsel for Wells Fargo; Patrick Green with Wells Fargo; Whitney Brewster with the Division of Motor Vehicles; Vicky Backus with the DNR Recorders Office; and Colleen Moore with the Alaska Department of Law were available to answer questions. CHAIR FRENCH closed public testimony. 1:42:03 PM CHAIR FRENCH moved Amendment 1 and objected for discussion purposes. A M E N D M E N T 1 OFFERED IN THE SENATE BY SENATOR FRENCH TO: CSSB 89( ), Draft Version "D" Page 21, line 22: Delete "2012" Insert "2013" Page 21, line 26: Delete "2012" Insert "2013" Page 21, line 29: Delete "2012" Insert "2013" He explained that the amendment brings the bill up to date since it was held over one year. Finding no discussion, he removed his objection. Hearing and seeing no further objection, he announced Amendment 1 was adopted. He noted the letters of support from Wells Fargo and the Alaska Bankers Association, which is comprised of local banks including Alaska Pacific Bank, Denali State Bank, First Bank of Ketchikan, First National Bank of Alaska, Key Bank, Mt. McKinley Bank, and Northrim Bank. 1:44:01 PM SENATOR WIELECHOWSKI moved to report CS for SB 104, version D as amended, from committee with individual recommendations and attached fiscal note(s). SENATOR PASKVAN said he'll support the bill and believes it's important for Alaskans to have the opportunity to obtain low interest loans, but his concern continues to be that these loans will be bundled and sold on the financial market. [In 1999 the Gramm-Leach-Bliley Act repealed provisions of the Glass-Steagall Act,] and essentially removed the separation between investment banking and commercial banking. In 2008 the world economic system was nearly crushed due, in part, to loan bundling and the issue of derivatives. He acknowledged that this bill wasn't the place to address that concern, but that he favors a return to Glass-Steagall provisions. 1:46:13 PM SENATOR WIELECHOWSKI agreed with the previous statement. He thanked the sponsor for bringing the bill forward and noted that it will help many of his constituents. It will allow more Alaskans to achieve the goal of home ownership and a host of associated advantages. SENATOR COGHILL thanked the sponsor for bringing the bill forward, and noted that it had generated a great deal of interest. CHAIR FRENCH announced that without objection, CSSB 104(JUD) moved from the Senate Judiciary Standing Committee.