Legislature(2005 - 2006)BUTROVICH 205
04/27/2006 08:30 AM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| SB307 | |
| SB316 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 190 | TELECONFERENCED | |
| + | HB 414 | TELECONFERENCED | |
| += | SB 307 | TELECONFERENCED | |
| += | SB 316 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 307-LANDLORD REMEDIES; LATE FEE
8:43:32 AM
CHAIR SEEKINS announced SB 307 to be up for consideration.
JANE ALBERTS, Staff to Senator Con Bunde, introduced the bill.
BOB MAIER, Alaska Manufactured Housing Association, testified he
has been involved in the bill since inception. The Association
is arguing for a 15 percent cap on late fees because "rents pay
mortgages." This late fee is based on the fees that mortgage
companies charge and should be the responsibility of the renter
who causes a late mortgage payment.
8:46:26 AM
SENATOR GUESS asked Ms. Alberts whether the state caps or
regulates any other fees.
MS. ALBERTS said she did not know of any but deferred to Mr.
Sniffen.
ED SNIFFEN, Assistant Attorney General, Department of Law (DOL),
addressed the question. The Division of Banking has a cap on
payday loan venders and non-sufficient funds checks.
8:48:22 AM
Senator Gene Therriault joined the meeting.
SENATOR FRENCH noted that normally late payments are well under
five percent. He said 15 percent was not fair and speculated
that 10 percent might not be fair as well.
CHAIR SEEKINS asked Mr. Mayer whether he was certain in his
earlier statement that the bank charges a 15 percent late fee on
a mortgage.
MR. MAIER responded there are not late fees but penalties.
Historically there has never been a set percentage on a late
fee. He suggested the committee go back to the original language
of the bill and let the market dictate the penalty.
8:51:17 AM
SENATOR GUESS asked whether a local government could regulate
the penalty.
MR. SNIFFEN said the Landlord Tenant Act would supersede
regulation of the rental market but that the municipalities
would be free to address anything not addressed in the Act.
SENATOR GUESS asked Ms. Alberts whether late fees would be used
as a basis for eviction.
MS. ALBERTS responded a person could be evicted but as previous
testimony suggested it does not happen.
8:54:13 AM
CHAIR SEEKINS said he had no problem capping the late fee. He
also said he was nervous about some of the things in the bill,
such as allowing a landlord to have too much control over late
fees and evictions.
8:57:46 AM at ease 9:24:47 AM
9:24:47 AM
CHAIR SEEKINS asked Mr. Sniffen to continue with his interrupted
testimony.
MR. SNIFFEN mentioned the only reason the committee was talking
about a cap on late fees is to address fair treatment to
tenants. A cap would be a reasonable compromise. He had no
comment on the percentage though.
9:26:47 AM
SENATOR FRENCH asked whether version G allows for an eviction on
a late fee.
CHAIR SEEKINS said, "That's correct."
SENATOR FRENCH proposed a conceptual amendment. If the committee
were going to allow an eviction on a late fee to push it back to
ten days. That would give the tenant three extra days to make
rent. He suggested streamlining the process to one notice and
one hearing. He said that would gain in efficiency what the
process loses in the three days.
MR. MAIER responded the reason for the 7-day notice was that
there are 30 days in the month and by the end of the grace
period and the court process weeks could go by without the
landlord collecting the rent.
MR. SNIFFEN commented that the three days would not be a deal-
breaker. The single notice concept is a good idea but the
committee needs to make sure that the notice is clear and easy
for tenants to understand.
9:30:54 AM
SENATOR FRENCH said he would need time to work his concept out.
SENATOR GUESS added she would prefer to see the amendment in
writing.
CHAIR SEEKINS held the bill in committee.
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