Legislature(2023 - 2024)BARNES 124

05/03/2023 03:15 PM House LABOR & COMMERCE

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Audio Topic
03:15:46 PM Start
03:16:04 PM HB97
03:39:00 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 123 LICENSE REQUIREMENTS: COMM. DRIVERS TELECONFERENCED
<Bill Hearing Canceled>
<Pending Referral>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 145 LOANS UNDER $25,000; PAYDAY LOANS TELECONFERENCED
<Bill Hearing Rescheduled to 05/05/23>
+= HB 97 SELF-STORAGE UNITS: LIENS; SALES TELECONFERENCED
Moved CSHB 97(L&C) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                          May 3, 2023                                                                                           
                           2:50 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Jesse Sumner, Chair                                                                                              
Representative Justin Ruffridge, Vice Chair                                                                                     
Representative Mike Prax                                                                                                        
Representative Dan Saddler                                                                                                      
Representative Stanley Wright                                                                                                   
Representative Ashley Carrick                                                                                                   
Representative Zack Fields                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 97                                                                                                               
"An  Act  relating   to  self-storage  facilities  for  personal                                                                
property,  including  vehicles  and  watercraft;  distinguishing                                                                
self-storage facility liens  from another type  of storage lien;                                                                
and excluding  self-storage liens from the  treatment of certain                                                                
unclaimed property."                                                                                                            
                                                                                                                                
     - MOVED CSHB 97(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  97                                                                                                                  
SHORT TITLE: SELF-STORAGE UNITS: LIENS; SALES                                                                                   
SPONSOR(s): REPRESENTATIVE(s) PRAX                                                                                              
                                                                                                                                
03/06/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/06/23       (H)       L&C, JUD                                                                                               
03/24/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/24/23       (H)       Heard & Held                                                                                           
03/24/23       (H)       MINUTE(L&C)                                                                                            
04/14/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/14/23       (H)       Heard & Held                                                                                           
04/14/23       (H)       MINUTE(L&C)                                                                                            
05/01/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/01/23       (H)       Heard & Held                                                                                           
05/01/23       (H)       MINUTE(L&C)                                                                                            
05/03/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
NATHANIEL DYE, Owner                                                                                                            
Juneau Self Storage                                                                                                             
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Gave invited testimony  during the hearing                                                              
on HB 97.                                                                                                                       
                                                                                                                                
DARREL SMITH, General Manager                                                                                                   
Best Storage                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Gave invited testimony  during the hearing                                                              
on HB 97.                                                                                                                       
                                                                                                                                
PAUL SCHNEIDER, Owner                                                                                                           
Storage Solutions North                                                                                                         
Chugiak, Alaska                                                                                                                 
POSITION STATEMENT:   Gave invited testimony  during the hearing                                                              
on HB 97.                                                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:15:46 PM                                                                                                                    
                                                                                                                                
CHAIR JESSE SUMNER called the  House Labor and Commerce Standing                                                              
Committee meeting to  order at 3:15 p.m.   Representatives Prax,                                                                
Wright, Ruffridge, and Sumner were present at the call to order.                                                                
Representatives  Saddler, Fields,  and  Carrick  arrived as  the                                                                
meeting was in progress.                                                                                                        
                                                                                                                                
            HB  97-SELF-STORAGE UNITS: LIENS; SALES                                                                         
                                                                                                                                
3:16:04 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that the  only order of business would be                                                                
HOUSE BILL NO.  97, "An Act  relating to self-storage facilities                                                                
for  personal  property,   including  vehicles  and  watercraft;                                                                
distinguishing self-storage facility liens from  another type of                                                                
storage  lien;   and  excluding  self-storage  liens   from  the                                                                
treatment of certain unclaimed property."  [Before the committee                                                                
was  the  committee substitute  (CS)  for  HB  97, labeled,  33-                                                                
LS0392\S, Dunmire, 4/25/23, ("Version S"),  adopted 5/1/233 as a                                                                
working document.]                                                                                                              
                                                                                                                                
3:16:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK moved to adopt  Amendment 3 to Version S,                                                                
labeled, 33-LS0392\B.1, Dunmire, 3/28/23, which read as follows:                                                                
                                                                                                                                
     Page 3, line 3:                                                                                                            
          Delete "or"                                                                                                           
          Insert "and"                                                                                                          
          Following "recent":                                                                                                   
               Insert "electronic mail address and mailing"                                                                     
                                                                                                                                
     Page 3, line 17:                                                                                                           
          Delete "20"                                                                                                           
          Insert "30"                                                                                                           
                                                                                                                                
CHAIR SUMNER objected.                                                                                                          
                                                                                                                                
3:16:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK noted that the amendment had been drafted                                                                
to the  previous version of  the proposed legislation,  with the                                                                
lines the  amendment is  drafted on  being the  only difference.                                                                
She  explained that  Amendment 3  would require  notification by                                                                
email and  postage mail  and increase the  total number  of days                                                                
required for notification from 20 to 30.                                                                                        
                                                                                                                                
3:18:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT  asked for the  bill sponsor's  opinion on                                                                
the amendment.                                                                                                                  
                                                                                                                                
REPRESENTATIVE PRAX expressed the opinion  that the amendment is                                                                
unnecessary because  the proposed legislation only  sets minimum                                                                
requirements, and storage owners could make  any changes, as the                                                                
maximum would  not be set.   He  added that the  language "mail"                                                                
would  imply certified  mail,  and this  would  be  a burden  on                                                                
storage facility owners.                                                                                                        
                                                                                                                                
3:19:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK responded  that  many  Alaskans live  in                                                                
rural  areas  and  making   the  process  duplicative  would  be                                                                
beneficial to them.                                                                                                             
                                                                                                                                
3:20:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS   commented  that  email   systems  often                                                                
incorrectly mark messages as spam.                                                                                              
                                                                                                                                
3:20:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE expressed opposition  to the amendment,                                                                
as  these notices  would be  for  a renter  already in  default;                                                                
therefore, the burden should fall on them.                                                                                      
                                                                                                                                
3:22:00 PM                                                                                                                    
                                                                                                                                
A roll call vote  was taken.  Representatives Carrick and Fields                                                                
voted in favor of Amendment 3 to HB 97.  Representatives Wright,                                                                
Ruffridge,  Saddler,   Prax,  and   Sumner  voted   against  it.                                                                
Therefore, Amendment 3 failed by a vote of 5-2.                                                                                 
                                                                                                                                
3:22:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS moved  to  adopt Amendment  1  to HB  97,                                                                
labeled, 33-LS0392\S.1, Dunmire, 5/2/23, which read as follow:                                                                  
                                                                                                                                
     Page 2, lines 1-2:                                                                                                         
          Delete ", labor, late fees, and other charges,                                                                        
      and for expenses reasonably incurred in the sale or                                                                       
     other disposition of the property under law"                                                                               
          Insert "and late fees"                                                                                                
                                                                                                                                
REPRESENTATIVE RUFFRIDGE objected.                                                                                              
                                                                                                                                
3:22:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  explained  that Amendment  1 would  place                                                                
limits on the  number of late fees  rental facility owners would                                                                
be able to impose.                                                                                                              
                                                                                                                                
3:24:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  expressed opposition  to  the amendment,                                                                
opining that late  fees should not be allowed only  in the event                                                                
of delinquency.                                                                                                                 
                                                                                                                                
3:25:25 PM                                                                                                                    
                                                                                                                                
NATHANIEL  DYE, Owner,  Juneau Self  Storage,  providing invited                                                                
testimony,  stated that  storage  facility  owners usually  only                                                                
recover approximately  30 percent of  lost fees  when auctioning                                                                
off a  storage unit, and  this is in  addition to paying  for an                                                                
auctioneer.  He expressed opposition to the amendment.                                                                          
                                                                                                                                
3:26:43 PM                                                                                                                    
                                                                                                                                
DARREL SMITH,  General Manager,  Best Storage,  provided invited                                                                
testimony, stating that storage  facilities are usually not able                                                                
to collect  any [excess]  fees charged  [after default],  and he                                                                
expressed opposition to the amendment.                                                                                          
                                                                                                                                
3:27:30 PM                                                                                                                    
                                                                                                                                
PAUL SCHNEIDER, Owner, Storage Solutions North, provided invited                                                                
testimony and expressed opposition to  the amendment.  He stated                                                                
that  storage  facility  owners  lose money  on  lost  rent,  in                                                                
addition to other fees, such as hauling trash to the dump.                                                                      
                                                                                                                                
3:28:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK expressed  uncertainty  about the  other                                                                
possible fees there may be.  She argued that the amendment would                                                                
protect against unnecessary fees.                                                                                               
                                                                                                                                
3:29:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT  asked for the  bill sponsor's  opinion on                                                                
the amendment.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  PRAX  said  that  a  rental  facility  agreement                                                                
assumes a tenant  will clean out the  storage unit and expressed                                                                
the opinion that those in default often leave behind junk.                                                                      
                                                                                                                                
3:30:50 PM                                                                                                                    
                                                                                                                                
A roll call vote  was taken.  Representatives Carrick and Fields                                                                
voted  in  favor of  Amendment  1  to  HB  97.   Representatives                                                                
Ruffridge, Saddler, Wright,  Prax, and Sumner  voted against it.                                                                
Therefore, Amendment 1 failed by a vote of 5-2.                                                                                 
                                                                                                                                
3:31:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS moved  to  adopt Amendment  2  to HB  97,                                                                
labeled, 33-LS0392\S.4, Dunmire, 5/2/23, which read as follow:                                                                  
                                                                                                                                
     Page 2, line 22:                                                                                                           
          Delete "10"                                                                                                           
          Insert "15"                                                                                                           
                                                                                                                                
     Page 3, line 9:                                                                                                            
          Delete "10"                                                                                                           
          Insert "75"                                                                                                           
                                                                                                                                
REPRESENTATIVE SADDLER objected.                                                                                                
                                                                                                                                
3:31:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS stated  that Amendment 2  would change the                                                                
bill's language to allow for 90 days of recovery after default.                                                                 
                                                                                                                                
3:32:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX commented  that the  bill's  purpose is  to                                                                
establish minimum  requirements and  expressed the  opinion that                                                                
the amendment is not necessary.                                                                                                 
                                                                                                                                
3:33:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS asked  Mr. Smith to offer  his thoughts on                                                                
the amendment.                                                                                                                  
                                                                                                                                
MR. SMITH answered that individuals often use storage facilities                                                                
in times  of crisis and allowing for  90 days would  give them a                                                                
chance to recover.                                                                                                              
                                                                                                                                
3:34:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER expressed  opposition  to the  amendment                                                                
because it would be the  renter's failure to uphold this part of                                                                
the contract.                                                                                                                   
                                                                                                                                
3:35:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK commented  that  it  is  possible for  a                                                                
person going  through a  personal crisis  to  be unaware  of the                                                                
default.  She said that the  amendment would give a chance for a                                                                
renter to recover and avoid losing property.                                                                                    
                                                                                                                                
3:37:08 PM                                                                                                                    
                                                                                                                                
A roll call vote  was taken.  Representatives Carrick and Fields                                                                
voted  in  favor of  Amendment  2  to  HB  97.   Representatives                                                                
Ruffridge, Wright, Prax,  Saddler, and Sumner  voted against it.                                                                
Therefore, Amendment 2 failed by a vote of 5-2.                                                                                 
                                                                                                                                
3:37:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX expressed the opinion that the proposed bill                                                                
would give storage facility owners and operators a better way to                                                                
deal with abandoned property.                                                                                                   
                                                                                                                                
3:38:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  moved to report  CSHB 97,  Version 33-                                                                
LS0392\S,  Dunmire, 4/25/23,  out of  committee  with individual                                                                
recommendations and the accompanying fiscal notes.                                                                              
                                                                                                                                
REPRESENTATIVE CARRICK objected.                                                                                                
                                                                                                                                
3:38:26 PM                                                                                                                    
                                                                                                                                
A  roll call  vote  was  taken.   Representatives Prax,  Wright,                                                                
Saddler, Ruffridge, and  Sumner voted in  favor of moving  HB 97                                                                
out  of committee.    Representatives Carrick  and Fields  voted                                                                
against it.   Therefore,  CSHB 97(L&C) was  reported out  of the                                                                
House Labor and Commerce Standing Committee by a vote of 5-2.                                                                   
                                                                                                                                
3:39:00 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further  business before the committee, the House                                                                
Labor and  Commerce Standing Committee meeting  was adjourned at                                                                
[3:39 p.m.].                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects
Amendment Packet for HB97.pdf HL&C 5/3/2023 3:15:00 PM
HB 97
HB97 CS (2).pdf HL&C 5/3/2023 3:15:00 PM
HB 97