Legislature(2013 - 2014)BARNES 124

03/14/2014 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 203 REIMBURSEMENT OF HEALTH INSURANCE CLAIMS TELECONFERENCED
Heard & Held
+= HB 282 LANDLORD AND TENANT ACT TELECONFERENCED
Heard & Held
+= HB 230 AIDEA BONDS FOR PROCESSING FACILITIES TELECONFERENCED
Heard & Held
+= HB 316 WORKERS' COMPENSATION MEDICAL FEES TELECONFERENCED
Scheduled But Not Heard
                 HB 282-LANDLORD AND TENANT ACT                                                                             
                                                                                                                                
4:00:54 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE  BILL  NO.  282,  "An   Act  relating  to  the  rights  and                                                               
obligations of  residential landlords  and tenants;  and relating                                                               
to the taking  of a permanent fund dividend for  rent and damages                                                               
owed to a residential landlord."                                                                                                
                                                                                                                                
CHAIR OLSON  removed his  objection.  [Version  O was  before the                                                               
committee.]                                                                                                                     
                                                                                                                                
4:01:24 PM                                                                                                                    
                                                                                                                                
BRENDA HEWITT, Staff, Representative  Doug Isaacson, Alaska State                                                               
Legislature, stated  that this bill  would provide  landlords and                                                               
tenants  a mutual  basis for  the condition  of the  property and                                                               
should alleviate some of the load  on the legal system.  The bill                                                               
would  add  protections  for  domestic  violence  victims,  allow                                                               
landlords to  require an additional pet  deposit, changes methods                                                               
of returning damage deposits,  and differentiates between service                                                               
and comfort  animals.   She highlighted  that the  sponsor worked                                                               
with  Alaska  Network  on  Domestic  Violence  &  Sexual  Assault                                                               
(ANDVSA) on an amendment.   She indicated that landlords who fall                                                               
under federal  regulations must  follow federal  law.   She noted                                                               
that a wonderful  booklet has been published  to assist landlords                                                               
and tenants and  she anticipated that it will  incorporate HB 282                                                               
changes to the  landlord tenant law.  In response  to a question,                                                               
she said Version O contains one amendment.                                                                                      
                                                                                                                                
4:04:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  made a  motion to  adopt an  Amendment 1,                                                               
labeled 28-LS0930\O.1, Bullock, 2/28/14, which read, as follows:                                                                
                                                                                                                                
     Page 12, line 28, following "housing":                                                                                     
          Insert ";                                                                                                         
               (9)  occupancy by an individual who is a                                                                     
     victim  of trauma  from a  sexual  assault or  domestic                                                                
     violence and  who is receiving housing  assistance from                                                                
     a  victim   counselling  center;  in   this  paragraph,                                                                
     "victim counselling  center" has  the meaning  given in                                                                
     AS 18.66.250"                                                                                                          
                                                                                                                                
REPRESENTATIVE OLSON objected for the purpose of discussion.                                                                    
                                                                                                                                
4:05:05 PM                                                                                                                    
                                                                                                                                
MS. HEWITT stated that the  [Alaska Network on] Domestic Violence                                                               
& Sexual Assault (ANDVSA) asked that  the language be added.  She                                                               
read Amendment 1.   She explained that if a  man and his children                                                               
are victims of  domestic violence and need housing  they can't be                                                               
housed at the  [women's] shelter, but are placed  in housing paid                                                               
for by the  ANDVSA.  In those instances the  assistance will fall                                                               
under transient housing.                                                                                                        
                                                                                                                                
REPRESENTATIVE JOSEPHSON anticipated that  these victims would be                                                               
released from their tenant contract.                                                                                            
                                                                                                                                
4:06:11 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON  removed his  objection.    There being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
4:06:32 PM                                                                                                                    
                                                                                                                                
PAMELA COOK, Property Manager, MB  Management, stated that she is                                                               
a licensed realtor, but works as  a property manager.  She stated                                                               
that she  supports the changes to  HB 282.  She  related that she                                                               
specifically supports  changing the security deposit  return date                                                               
from 14 days to 30 days.   She said that this typically spans two                                                               
weekends  so the  effect is  10 days  - less  if a  holiday falls                                                               
during the  week.   This additional time  will give  the property                                                               
manager time  to attend  to any  issues.   For example,  when the                                                               
property typically is checked during  the inspection, the carpets                                                               
are clean and the place  smells like cleaning products, which may                                                               
mask smoke  or pet  odors that reappear  in a few  days.   In the                                                               
event that any carpets or dry  wall need replacing it takes extra                                                               
time.   She  works hard  to return  the deposit  prior to  the 14                                                               
days.  She has also returned  deposits to military tenants at the                                                               
inspection  if  they are  ready  to  deploy.   Additionally,  the                                                               
landlord  tenant act  allows  tenants  up to  15  days to  remove                                                               
property.   The  water companies  often don't  read the  meter to                                                               
generate bills  until two  weeks after  the tenant  leaves, which                                                               
means  that  the  property  manager will  need  to  estimate  the                                                               
billing.   She related his  understanding that many  other states                                                               
have a  30-day deposit return  requirement.  She said  it doesn't                                                               
mean property  managers will hold the  check for 30 days,  but it                                                               
would allow them  additional time to "do it the  right way."  She                                                               
supported the  pet fee  increase since so  many people  arrive in                                                               
Alaska with pets.                                                                                                               
                                                                                                                                
4:11:12 PM                                                                                                                    
                                                                                                                                
MS. COOK said that requiring  "professionally cleaned" carpets at                                                               
the end  of tenancy has been  challenged by tenants.   She thinks                                                               
of this as  being a common courtesy, but often  the tenants don't                                                               
have the  money since they  are paying for security  deposits and                                                               
other  expenses.   She  said if  the  rentals are  professionally                                                               
cleaned  prior  to  occupying  the  rental,  the  tenants  should                                                               
professionally clean  the carpets when  they leave.   She offered                                                               
her  belief that  this is  covered in  proposed Section  13, too.                                                               
She understands  normal wear and  tear, but appreciated  having a                                                               
definition in the bill.                                                                                                         
                                                                                                                                
4:12:20 PM                                                                                                                    
                                                                                                                                
MS. COOK related she had questions  on occupancy.  For example, a                                                               
family of  seven may wish  to move into a  one-bedroom apartment.                                                               
She  acknowledged occupancy  is covered  but says  "by applicable                                                               
law" and  she could not find  any reference in state  and federal                                                               
law.   She  would like  to  be able  to turn  these tenants  away                                                               
legally  since seven  occupants  represent too  many  for a  one-                                                               
bedroom apartment.                                                                                                              
                                                                                                                                
CHAIR OLSON  suggested that perhaps  this is covered by  the city                                                               
ordinances.   He recalled  that the  city and  borough ordinances                                                               
cover this in Kenai and Anchorage.                                                                                              
                                                                                                                                
4:13:17 PM                                                                                                                    
                                                                                                                                
ANTOWETTE BREWER, Property Manager  and Realtor, Coldwell Banker,                                                               
understood that  getting out  of the  situation is  important for                                                               
victims of  domestic violence.   She  asked whether  the landlord                                                               
will be provided paperwork, such as  a police report if one party                                                               
is staying and one is leaving.                                                                                                  
                                                                                                                                
4:14:36 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  said he was  not sure.  He suggested that  she raise                                                               
the issue with the sponsor.                                                                                                     
                                                                                                                                
MS. BREWER  asked whether drug  use was  covered.  She  related a                                                               
scenario in which a furnace  repairman reported when he fixed the                                                               
furnace  he  noticed  drug  paraphernalia  and  pipes.    Tenants                                                               
typically are not  forthcoming about drug use and  will not admit                                                               
to it.                                                                                                                          
                                                                                                                                
4:16:00 PM                                                                                                                    
                                                                                                                                
KIRK MAYNARD, Owner  and Broker, Coldwell Banker,  stated he will                                                               
discuss his  concerns about the  amendment for  early termination                                                               
for victims  of domestic  violence with  the sponsor.  He offered                                                               
his support  for the testimony  by Ms. Cook  and said he  has the                                                               
same concerns.                                                                                                                  
                                                                                                                                
4:16:47 PM                                                                                                                    
                                                                                                                                
RICHARD BLOCK,  Manager, Mellen  Investment Company,  LLC, stated                                                               
that Mellen Investment  Company manages over 110  properties.  He                                                               
apologized  since  he  recently   discovered  the  bill,  but  he                                                               
immediately began discussions with the  sponsor's staff.  He said                                                               
has reviewed Version  O.  He indicated he has  written a position                                                               
paper  which he  urged members  to  review [letter  of March  14,                                                               
2014, 5 pages].  Although the  bill has many provisions worthy of                                                               
consideration  and adoption,  a  number of  things raise  serious                                                               
questions  that warrant  slowing down  to  work out  some of  the                                                               
"kinks."  He offered to discuss  2 of 16 recommended changes.  He                                                               
referred to proposed  Section 6 of the bill, to  the inclusion of                                                               
"normal  wear and  tear."    The question  becomes  what is  that                                                               
standard that  landlords expect tenants  to return  the apartment                                                               
in at  the time they vacate.   He expressed concern  over "normal                                                               
wear  and  tear"  since  it  could become  a  lightning  rod  for                                                               
litigation.  One  person's idea of "destruction"  might be viewed                                                               
as "normal  wear and tear."   He  offered his belief  that should                                                               
not be  the standard.   Under the  bill, the landlord  tenant law                                                               
would  require a  pre-tenancy condition  statement signed  by the                                                               
landlord  and the  tenant.   He suggested  that the  "pre-tenancy                                                               
condition statement" becomes the  standard for what the apartment                                                               
should look like at the end  of the tenancy and make no allowance                                                               
for excuses  that denting in the  walls, holes in the  doors, and                                                               
stains in  the carpet are a  result of reasonable wear  and tear.                                                               
He  said that  there  may be  a  way to  fix  the definition  and                                                               
offered to work on this but he found it to be unsatisfactory.                                                                   
                                                                                                                                
4:20:19 PM                                                                                                                    
                                                                                                                                
MR. BLOCK  turned to the  second item -  the issue of  victims of                                                               
abuse  being  able  to  unilaterally   terminate  a  lease.    He                                                               
understood the  problem from  the victim's  perspective; however,                                                               
he is  uncertain that it  is the responsibility of  the landlord.                                                               
The landlord  has made the  space available and the  parties have                                                               
signed an  agreement for the  finance and  occupancy obligations.                                                               
There shouldn't  be any  way a  tenant can  unilaterally abrogate                                                               
those  responsibilities.   He  pointed  out  that if  two  people                                                               
occupy a residence  and are buying the residence,  but one person                                                               
has to leave  [due to domestic violence],  the departing occupant                                                               
cannot write  a letter  to the  bank to  indicate he/she  will no                                                               
longer make payments  on the note.  The buyers  must make payment                                                               
no matter  what the  situation.  He  acknowledged there  could be                                                               
some  harmonious mid-ground  to find  a  way to  allow an  abused                                                               
tenant  to  leave;  however,  it must  be  with  provisions  that                                                               
maintain that tenant's legal obligation  up until the termination                                                               
of the tenancy, including returning  the property in its previous                                                               
condition.    He  stated  while  some  landlords  may  have  been                                                               
involved in the  process that he did not see  any indication that                                                               
the  bill  takes  into  consideration   those  with  a  financial                                                               
investment in the  real estate.  He would like  an opportunity to                                                               
participate in that process.                                                                                                    
                                                                                                                                
4:22:44 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON  said the  sponsor  is  shaking  his head  yes,  and                                                               
determining  no  one  else  wished   to  testify,  closed  public                                                               
testimony on HB 282.                                                                                                            
                                                                                                                                
[HB 282 was held over.]                                                                                                         

Document Name Date/Time Subjects
HB203 ver N.pdf HL&C 3/14/2014 3:15:00 PM
HB 203
HB203 Sponsor Statement.pdf HL&C 3/14/2014 3:15:00 PM
HB 203
HB203 Sectional Analysis.pdf HL&C 3/14/2014 3:15:00 PM
HB 203
HB203 Fiscal Note-DCCED-DOI-03-07-14.pdf HL&C 3/14/2014 3:15:00 PM
HB 203
HB203 Fiscal Note-DOA-HPA-03-07-14.pdf HL&C 3/14/2014 3:15:00 PM
HB 203
HB203 Supporting Documents-AK Health Plan comments-Premera.pdf HL&C 3/14/2014 3:15:00 PM
HB 203
HB203 Supporting Documents-Letter Ward Hulbert 3-07-2014.pdf HL&C 3/14/2014 3:15:00 PM
HB 203
HB203 Supporting Doucments-Alaska Care-Summary of Benefits - Network vs Non-Network.pdf HL&C 3/14/2014 3:15:00 PM
HB 203
HB203 Draft Proposed Blank CS ver C.pdf HL&C 3/14/2014 3:15:00 PM
HB 203
HB282 Supporting Documents-Letter Cathleen Hahn 03-11-14.pdf HL&C 3/14/2014 3:15:00 PM
HB 282
HB282 Draft Propose Amendment O.1.pdf HL&C 3/14/2014 3:15:00 PM
HB 282
HB282 Memo - Legal Services re Draft Amendment O.1 02-28-14.pdf HL&C 3/14/2014 3:15:00 PM
HB 282
HB230 Draft Proposed Amendment ver U.1.pdf HL&C 3/14/2014 3:15:00 PM
HB 230
HB230 Draft Proposed Amendment ver U.2.pdf HL&C 3/14/2014 3:15:00 PM
HB 230
HB230 Draft Proposed Amendment ver U.4.pdf HL&C 3/14/2014 3:15:00 PM
HB 230
HB230 Draft Proposed Amendment ver U.5.pdf HL&C 3/14/2014 3:15:00 PM
HB 230
HB282 Opposing Documents-Letter Richard Block 3-14-2014.pdf HL&C 3/14/2014 3:15:00 PM
HB 282
HB230 Summary of Changes ver A to ver U.pdf HL&C 3/14/2014 3:15:00 PM
HB 230
HB316 Draft Proposed Amendment O.1.PDF HL&C 3/14/2014 3:15:00 PM
HB 316