02/16/1998 01:30 PM Senate JUD

                   SB 195 - COMMON LAW LIENS                                   
                                                                               
MR. TIM BENINTENDI, staff to Senator Kelly, presented SB 195 as a              
bill designed to reduce filing of nuisance liens as a form of                  
retribution. He said such liens have been filed maliciously against            
property owned by public officials who have fallen into disfavor               
with opposing groups. MR. BENINTENDI stated these liens rarely have            
a commercial foundation and are used as harassment. SB 195 would               
make it a misdemeanor to file this type of lien and ease the                   
process of releasing or invalidating the lien. The bill would also             
set out civil penalties for filers of such liens. MR. BENINTENDI               
mentioned the bill enjoys wide support and carries two zero fiscal             
notes.                                                                         
                                                                               
CHAIRMAN TAYLOR asked for a general explanation of a common law                
lien. MR. BENINTENDI characterized it as a filing against property             
on behalf of an individual who feels they have an action against               
the property owner.                                                            
                                                                               
MR. DOUG WOOLIVER, representing the Alaska Court System,                       
acknowledged this is a growing problem in Alaska. He said this type            
of lien has no relation to the property itself.  Usually, a lien               
has a direct connection to the property, as in a lien placed                   
against a building as a result of non-payment of construction                  
services. MR. WOOLIVER said this common law lien has been used in              
retribution for zoning enforcement actions, specifically against               
public officials. In one case, the lien itself specified it was in             
retaliation for a zoning enforcement act. He added this action has             
been threatened against employees of the child support enforcement             
division, clerks of court, magistrates, police officers and others.            
He stated there are plenty of legitimate liens available to people             
with a claim. He added this bill is narrowly drafted to deal with              
this problematic non-consensual common law lien.                               
                                                                               
SENATOR PARNELL asked if there are categories of common-law liens.             
MR. WOOLIVER replied the only legitimate type of common law lien               
was several years ago, recorded by a real estate agent who alleged             
misdealing by a client.                                                        
                                                                               
SENATOR PARNELL asked if this is the same thing as a lis pendens               
and CHAIRMAN TAYLOR questioned if it would affect lis pendens                  
liens. MR. WOOLIVER said it will not affect the separate entity of             
lis pendens, which informs people a title is in dispute. He said,              
unlike a lis pendens, these non-consensual common law liens do not             
allege a title is in dispute.                                                  
                                                                               
CHAIRMAN TAYLOR informed the committee that common law property                
liens could still occur, but only when there is consent by the                 
owner. MR. WOOLIVER agreed.                                                    
                                                                               
SENATOR PARNELL asked what the maximum potential penalty for this              
offense would be. MR. WOOLIVER replied it would be a class A                   
misdemeanor, with a possible $5,000 fine and up to a year in jail.             
                                                                               
Number 524                                                                     
                                                                               
SENATOR PARNELL moved SB 195 from committee with individual                    
recommendations. Without objection, the bill moved from committee.