SENATOR KELLY returned HB 180 (ALASKA HOUSING FINANCE CORPORATION HOUSING INSPECTION REQUIREMENTS) to committee and asked DAVID HARDING, Aide to REPRESENTATIVE EILEEN MACLEAN, to explain the proposed committee substitute on HB 180. Number 100 MR. HARDING explained the only change was on page 2, lines 17 and 18 with a definition of "rural area." He quoted the concerns of the committee that the previous definition was too broad, so the population cap of 5,500 was added. SENATOR KELLY asked who it would cover. MR. HARDING said it would not apply to communities with their own municipal codes, but would change the designation for Ketchikan, Sitka, and possibly Bethel, with the changes in their population number. SENATOR KELLY checked to be sure of the designation of Juneau and Cordova. SENATOR LINCOLN questioned whether the changes would eliminate Minto, connected by road to Fairbanks, and she was told it would. She listed Manley and all of the Ottna communities, but MR. HARDING said the bill was not intended to catch people along the road system. He explained the merger that precipitated the legislation, and how it was being addressed in the legislation. Number 149 SENATOR LINCOLN expressed her problem with a five hour trip to Manley over a nearly impassable road, except in the winter time. MR. HARDING said Manley was not covered in HB 180, and SENATOR SHARP explained the road to Eagle was accessible during the summer time, but not the winter. He wondered if the definition was going to cause additional problems. There was a general discussion among the committee members of the various communities that would or would not be served by the legislation. MR. HARDING reviewed the provisions of the proposed legislation to provide for inspection in those areas not presently served by municipal codes or reside on the highway system, where inspectors can access the buildings, albeit on a substandard road. SENATOR KELLY asked if any complaints had been received from Minto, Manley, or Eagle, and MR. HARDING said not in the two years he had been working on the bill. SENATOR LINCOLN asked for the next committee of referral, and it was found to be the Rules Committee. SENATOR KELLY decided to hold the legislation for another meeting and asked SENATOR LINCOLN for language to address the problem, but he suggested it might be difficult to narrow the definition any further. SENATOR SHARP said he was not interested in fixing any more of the problems that were created when AHFC was merged with Alaska State Housing by the Legislature. MR. HARDING explained the definition for rural mirrors a part of the definition of "small community" later on in the Chapter, which he read: "A small community is defined as community under 1,400 on the road system." He suggested a numbers fix was the only option left to the legislators, but it might also allow communities on the edge of Anchorage to benefit from the legislation. Number 198 SENATOR KELLY again said the bill could be addressed before the next meeting for any changes.