SB 173-NEWSPAPER PROPERTY SALES NOTICES    CHAIR RALPH SEEKINS announced SB 173 to be up for consideration. RYAN MAKINSTER, staff to Senator Cowdery, explained that SB 173 addresses an issue regarding notice of a fail on execution for real property. Currently before a sale of property on execution can take place, a public notice must be given including certified mail, mail and public notice in a newspaper. SB 173 addresses the fact that the current definition of general circulation newspaper includes one provision - that it would have a second-class federal postage permit. This was under the belief that newspapers in general circulation had that power. Nowadays there are free newspapers - the Anchorage Press, for example. And now it has an overwhelming circulation - enough to qualify in other states as a general circulation newspaper. The intent of AS 9.35.410 is to notify the public. What better way to notify the public than a broad- reaching free newspaper? Basically, all this bill will do is remove the requirement of a second-class mailing permit. As the statute is currently written, periodical permits are called second-class mailing permits.   1:55:28 PM SENATOR BEN STEVENS asked when the definition of a second-class permit was changed to periodical. MR. MAKINSTER replied that it was changed in 1996. He added that other provisions for general circulation are that the paper has to be distributed at least once a week for 50 weeks in each year and must have a total paid circulation or distribution of 500 copies or 10 percent of the total population of the judicial district in which it is located. SENATOR BEN STEVENS asked how many publications this would affect other than the Anchorage Press. MR. MAKINSTER replied that the Anchorage Press is the only publication he knows of. 1:57:27 PM SENATOR ELLIS asked if the Pulse, in Anchorage, would qualify. MR. MAKINSTER replied that he didn't know for sure. If they did a broad notice across all of their circulations, that would fulfill the number within the judicial district, but if you specifically went to the South side, that doesn't have a large enough circulation to fulfill that, it would have to be in every publication. I believe under that case, it would fill the obligation. SENATOR ELLIS pointed out that there are more than just three newspapers statewide and asked if the Anchorage Daily News and Chugiak Eagle River Star would qualify also. MR. MAKINSTER apologized and said that he was only thinking of the Anchorage area and forgot to mention that other papers qualify. The Juneau Empire is another paper that has a periodical permit, which was previously a class 2 permit. 1:59:10 PM CHAIR SEEKINS said he had never even seen a copy of the Anchorage Press and asked how many other people would rely on a general circulation paper to keep abreast of public notices like him. He was curious if they are just trying to reach a number or really trying to fulfill the purpose of a public notice. MR. MAKINSTER replied that his argument can be made, but on the other hand, a subscription doesn't automatically reach the people you want it to and, as a consequence, language says a publication only has to reach a large enough number to qualify for general circulation. CHAIR SEEKINS asked if the bidding process on public notice is for each notice or to be the publisher of public notices in the community. MR. MAKINSTER replied currently when a public notice goes out to bid, just one entity is being used. He didn't know how this would change the process. 2:02:19 PM CHAIR SEEKINS said he was concerned that a general-purpose publication (not intended primarily for a particular professional or occupational group) that had a total paid distribution of at least 500 copies could bid competitively against a newspaper with tens of thousands of readers. He has a high regard for trying to reach the greatest number of people possible with public notice and thought that was part of the legislature's responsibility. If he puts public notice up for bid and as a result of a lower bid, he notifies fewer people, he is not meeting his public responsibility. MR. MAKINSTER responded that the sponsor's intent is to allow free circulation newspapers that fulfill the obligations of having a permit to bid on public notices, but he would work with Senator Seekins on language that would address his concern with the smaller-running publications. 2:04:18 PM SENATOR BEN STEVENS said he would not classify requirement for public notice as an advertisement. Most people that follow the public notice for sale of real property in Anchorage are almost in the business. Regardless of what publication it's in, they would know where it's going to go and they would follow it. He wasn't quite in agreement with requiring that the public notice has to reach as many people as possible. 2:05:29 PM CHAIR SEEKINS said he was not that concerned if the intent is to broaden the availability and distribution, but if it's an "either or" situation, he did. He thought this bill could easily be portrayed as single-interest legislation and that probably wasn't the intent of the sponsor. He asked if the large papers in the state had commented. MR. MAKINSTER replied that he had contacted the Anchorage Daily News circulation manager who didn't have any response. 2:07:35 PM SENATOR ELLIS asked if notices could be in the free Capital City Weekly instead of the Juneau Empire. MR. MAKINSTER replied that he didn't know if the Capital City Weekly qualified under the circulation number. 2:07:56 PM CHAIR SEEKINS asked if there was a definition difference between circulation and the number of copies printed. MR. MAKINSTER replied that just printing them and leaving them in warehouses does not fulfill that obligation, they have to at least be on a stand. 2:08:12 PM SENATOR BEN STEVENS said that numerous smaller publications have a big circulation in the west and southwest parts of the state and they that have to have the periodic bulk rate to fulfill their distribution rate from their subscription base as well as their free distribution. He knows that those circulations carry public notices in them. Their distribution might not be as big as the Anchorage Press, but because they have the bulk rate, they have been able to participate under the public notice process. CHAIR SEEKINS replied that he wasn't trying to constrict their participation, but rather he was trying to make sure they didn't constrict it by this law. He said that he would hold SB 173 so he could at least talk to his newspaper in Fairbanks. He asserted that he is not trying to protect the economic interest of the Anchorage Daily News. CHAIR SEEKINS announced he would hold SB 173 in committee.