Legislature(2023 - 2024)GRUENBERG 120
02/07/2024 01:00 PM House JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| HB97 | |
| HB67 | |
| HB161 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 97 | TELECONFERENCED | |
| += | HB 67 | TELECONFERENCED | |
| *+ | HB 161 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 97-SELF-STORAGE UNITS: LIENS; SALES
1:14:00 PM
CHAIR VANCE announced that the first 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 CSHB 97(L&C).]
CHAIR VANCE opened public testimony on HB 97.
1:14:39 PM
GARY JENKINS, Owner, Space Unclaimed, testified during the
hearing on CSHB 97(L&C). He opined that the bill language would
set some bad precedents and directed attention to Sec. 34.35.620
[Denial of access; removal of unit property.], which he believed
would enable and encourage bad behavior on the part of
operators. He highlighted subsection (b) as particularly
troublesome. He encouraged the committee to address structural
errors in the bill before moving it forward.
1:19:40 PM
NATHANIEL DYE, Juneau Self Storage; American Mini Storage,
testified in support of HB 97. He opined that the bill would
institute a minimum requirement statute while protecting
consumers and business owners.
1:20:32 PM
WILLIAM BREWER, Owner, Fairbanks Storage, testified during the
hearing on HB 97. He stated that the bill was asking for a set
of laws to ensure that all self-storage business owners were
operating on the same terms. He assured the committee that
storage owners do not want the legal authority to take
possession of customers' things; instead, they were asking for
the ability to turn over the unit to new paying customers and
stop the loss of revenue from customers who do not abide by the
rental agreement. He added that most of the time, abandoned
units are full of trash and invaluable items. Furthermore, he
indicated that email is the best form of notification, as mail
is often returned undeliverable.
1:23:13 PM
ELIZABETH MANN, General Manager, Alaska Mini Storage, testified
in support of HB 97, as it would not challenge any existing
policies or regulations. Without a lien law, she said, Alaska
storage is subject to a "wild wild West" environment. She
shared her belief that HB 97 would hold storage units to a
higher standard, and in turn, gain greater respect from the
community.
1:24:01 PM
TYLER SCOTT, Public Self Storage, testified in support of HB 97.
He said the bill would protect customers and bring an even
playing field to operators.
1:25:00 PM
LONNIE BICKFORD, Owner, AK Storage Center, testified in support
of HB 97. He stated that the bill would protect [operators] and
implement solid law that mirrored that of other states. He
anecdotally reported that most possessions left behind are
invaluable.
1:27:01 PM
CHAIR VANCE closed public testimony on HB 97.
1:27:35 PM
REPRESENTATIVE ALLARD moved to adopt Amendment 1 to CSHB
97(L&C), labeled 33-LS0392\S.6, Dunmire, 2/6/24, which read:
Page 2, line 8:
Delete "Notwithstanding AS 28.10.371, if"
Insert "If"
Page 2, line 9:
Delete "superior"
Insert "subordinate"
Page 2, line 11:
Delete "A storage lien is superior to a security
interest perfected under AS 45.29."
Page 2, line 12, following "except":
Insert "a lien that was perfected before the date
the rental agreement was signed or"
CHAIR VANCE objected for the purpose of discussion.
1:27:47 PM
REPRESENTATIVE MIKE PRAX, Alaska State Legislature, prime
sponsor of CSHB 97(L&C), explained that Amendment 1 would make
the facility owner's lien subordinate to any existing lien.
REPRESENTATIVE SUMNER asked why the default notice in Section 34
and Section 35 was insufficient. In addition, he questioned how
storage owners would be reimbursed for the storage of a vehicle
if the vehicle owner was behind on payments.
REPRESENTATIVE PRAX deferred to Mr. Bryant.
1:30:20 PM
DANIEL BRYANT, Legal and Legislative Counsel, Self Storage
Association, acknowledged the concern and explained that the
goal was to find common ground with financial institutions in
the state in the hopes to keep the legislation moving.
REPRESENTATIVE SUMNER asked what would happen if a vehicle with
a lien was towed to a tow yard, and whether "they" would be
subordinate to the lien.
REPRESENTATIVE PRAX answered no, the "towing company's storage
lien" would be superior to the lender.
REPRESENTATIVE SUMNER asked why there was stricter treatment for
a situation into which people were voluntarily entering.
REPRESENTATIVE PRAX said, "That's a good point."
1:33:02 PM
REPRESENTATIVE CARPENTER pointed out that if an occupant stored
a piece of equipment in the unit and stopped making payments on
both, [the equipment] would revert back to the bank, and the
bank would need to reclaim it from the storage unit. He said he
did not see the need for Amendment 1.
1:34:31 PM
REPRESENTATIVE ALLARD expressed concern about email being the
only form of notification. She asked whether the bill sponsor
would be amenable to adding [Certified Mail] as a form of
contact.
REPRESENTATIVE PRAX answered no, because the facility owner
still accrues expenses through loss of income.
REPRESENTATIVE SUMNER called a point of order, as the question
was not germane to Amendment 1.
CHAIR VANCE redirected attention back to Amendment 1.
1:36:39 PM
REPRESENTATIVE C. JOHNSON said he had a problem with rushing
amendments through without proper vetting. He moved to table
Amendment 1. There being no objection, Amendment 1 was tabled.
1:37:59 PM
The committee took an at-ease from 1:37 p.m. to 1:39 p.m.
1:39:45 PM
CHAIR VANCE said after deliberation about consideration of
amendments and further action on the bill, she wanted members to
feel comfortable with the ability to review material. She
announced that CSHB 97(L&C) would be held over.