Legislature(1999 - 2000)

02/02/1999 08:05 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HB 22 - INVESTIGATIONS BY MUNICIPAL ASSESSOR                                                                                    
                                                                                                                                
Number 018                                                                                                                      
                                                                                                                                
CO-CHAIRMAN HARRIS announced the first order of business was HOUSE                                                              
BILL NO. 22, "An Act relating to investigations of property by a                                                                
municipal assessor or the assessor's agent; and providing for an                                                                
effective date."                                                                                                                
                                                                                                                                
REPRESENTATIVE OGAN, Alaska State Legislature, explained that HB 22                                                             
was introduced out of concern of an incident, albeit isolated, that                                                             
occurred to a constituent.  Representative Ogan noted that the                                                                  
committee packet contained written testimony from the constituent                                                               
involved.  The constituent heard someone in his house who turned                                                                
out to be the borough tax assessor who was already 10-15 feet                                                                   
inside of the house with the door closed.  Representative Ogan                                                                  
believed the following provisions in the Alaska Constitution                                                                    
regarding the right of privacy, Article I, Section 22, searches and                                                             
seizures in Article I, Section 14, and due process in Article I,                                                                
Section 7, were recognized in HB 22.  He reviewed Alaska Statute                                                                
(AS) Section 29.45.130, specifically (b) of that section which                                                                  
reads, "For investigation, the assessor or the assessor's agent may                                                             
enter a premise during reasonable hours and may examine property on                                                             
the premise."  Representative Ogan explained that HB 22 would                                                                   
require the assessor to gain permission from the possessor of the                                                               
property before entering the property.  He commented that the                                                                   
reference to "reasonable hours" may not be considered the same by                                                               
all.                                                                                                                            
                                                                                                                                
Number 134                                                                                                                      
                                                                                                                                
REPRESENTATIVE KOOKESH asked if the normal process of going through                                                             
the channels of the municipal government, such as contacting this                                                               
assessor's supervisor or bringing the situation before the borough                                                              
assembly, was attempted.  Representative Kookesh said that HB 22                                                                
seemed far-reaching in response to a single incident.                                                                           
                                                                                                                                
REPRESENTATIVE OGAN said that Representative Kookesh's point was                                                                
well taken, but he viewed his obligation to defend the constitution                                                             
and his constituent's rights as a serious responsibility.  Any time                                                             
the government has leeway, abuses occur.  In talking with the local                                                             
people, Representative Ogan did not believe this situation would                                                                
happen again, but the incident prompted review of the statute which                                                             
was cause for concern.  Representative Ogan did not believe it to                                                               
be good policy to allow the state assessor the authority to have                                                                
access to a house whenever he wants.                                                                                            
                                                                                                                                
REPRESENTATIVE MURKOWSKI understood that the assessors observe the                                                              
exterior of a property, but not actually come inside the dwelling.                                                              
She interpreted the statute language, "enter a premise" as allowing                                                             
the assessor to enter the real property, but not into the dwelling.                                                             
Is the intent of HB 22 to require permission only when the assessor                                                             
wants to enter a dwelling or would permission also be necessary to                                                              
come on the real property itself?                                                                                               
                                                                                                                                
Number 200                                                                                                                      
                                                                                                                                
REPRESENTATIVE OGAN referred to Section 1 of HB 22 where "[A                                                                    
PREMISE]" was deleted and "real property" is included.                                                                          
Representative Ogan said that an assessor would be allowed to drive                                                             
on the property and look around, but permission from the person in                                                              
possession of the property would be required to enter the dwelling.                                                             
Representative Ogan noted that there had been concerns that                                                                     
"possession" was somewhat ambiguous.  He suggested that the                                                                     
language be amended to "actual possession" which is defined in                                                                  
Black's Law Dictionary as "exists where the thing is in immediate                                                               
occupancy and physical control of the party" which Representative                                                               
Ogan said could be an owner or renter.  Representative Ogan further                                                             
suggested that language should be considered that would allow an                                                                
assessor to enter when a property is under the possession of a                                                                  
contractor and is under construction.                                                                                           
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked if the intent was to only require                                                                
permission if the assessor wanted to enter a dwelling.                                                                          
                                                                                                                                
REPRESENTATIVE OGAN replied yes.  He envisioned a form that the                                                                 
assessor would have the owner sign to indicate permission was                                                                   
granted.  This would alleviate later civil liability.                                                                           
Representative Ogan noted that the assessor can get a court order                                                               
to enter a dwelling if so compelled which is specified on page 1,                                                               
line 10 of HB 22.  Representative Ogan mentioned that assessors                                                                 
have told him that it is in the favor of the owner to enter the                                                                 
house because the assessor would take some things for granted if                                                                
only looking at the exterior.                                                                                                   
                                                                                                                                
Number 284                                                                                                                      
                                                                                                                                
REPRESENTATIVE DYSON was startled with the statutory language                                                                   
regarding assessors.                                                                                                            
                                                                                                                                
REPRESENTATIVE JOULE asked if there would be a way to address this                                                              
isolated problem at the borough level through borough code or                                                                   
ordinances.                                                                                                                     
                                                                                                                                
REPRESENTATIVE OGAN said that the borough could pass a code, but                                                                
that ignores the legislative responsibility to protect citizens'                                                                
rights under the constitution.                                                                                                  
                                                                                                                                
REPRESENTATIVE JOULE noted that this issue was similar to the wolf                                                              
snare issue where a particular area had a problem that some were                                                                
trying to deal with on a statewide level.  He indicated that                                                                    
passage of a law could be avoided, if local areas could deal with                                                               
this situation on their own.  Representative Joule agreed with                                                                  
where Representative Ogan was attempting to go.                                                                                 
                                                                                                                                
REPRESENTATIVE OGAN believed that past legislators across the                                                                   
nation have ignored the constitution, passed laws that are                                                                      
unconstitutional and let the courts make the decisions.                                                                         
Representative Ogan said that he takes his oath seriously and wants                                                             
to close the loop holes that could result in possible injustice and                                                             
abuse by the government.  Representative Ogan suspected this                                                                    
problem to be more widespread than is evident; who wants to make an                                                             
issue of it?                                                                                                                    
                                                                                                                                
Number 351                                                                                                                      
                                                                                                                                
CO-CHAIRMAN HALCRO explained that in the Municipality of Anchorage                                                              
one must receive a Certificate of Occupancy from a building                                                                     
inspector before moving into a new home.  Does that apply in the                                                                
Mat-Su Valley?                                                                                                                  
                                                                                                                                
REPRESENTATIVE OGAN replied no, as with most of the state there are                                                             
no building codes nor inspections.  Commercial buildings are                                                                    
reviewed by the state fire inspector.  In further response to                                                                   
Co-Chairman Halcro, Representative Ogan said there is no authority                                                              
that approves building plans in Mat-Su or most areas of the state.                                                              
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked if the municipal regulations or                                                                  
borough ordinances had been reviewed with regard to assessors and                                                               
their ability to be on property.  She wondered if there was a lack                                                              
of uniformity within municipal or borough government regarding the                                                              
power of the assessors.                                                                                                         
                                                                                                                                
Number 391                                                                                                                      
                                                                                                                                
REPRESENTATIVE OGAN said that he did not do an extensive review  of                                                             
the authority of municipal assessors because they have broad                                                                    
authority in the statutes.  This legislation would cleanup the                                                                  
statute and establish the standard.                                                                                             
                                                                                                                                
REPRESENTATIVE MURKOWSKI restated her question.  She asked if there                                                             
was language in municipal ordinances or regulations that specify                                                                
that an assessor shall not enter a dwelling or property without                                                                 
permission.  Is it possible to monitor this on a local level?                                                                   
                                                                                                                                
REPRESENTATIVE OGAN agreed with Co-Chairman Harris' assessment that                                                             
HB 22 only deals with entering the premise.  Representative Ogan                                                                
read the language on page 1, line 5 which states, "For                                                                          
investigation, the assessor or the assessor's agent may enter real                                                              
property [A PREMISE] during reasonable hours to [AND MAY] examine                                                               
visible personal property and the exterior of a dwelling or other                                                               
structure on the real property."  He said that the assessor must                                                                
knock on the door and identify himself as an assessor and receive                                                               
permission to enter the house from the owner.  Representative Ogan                                                              
did not believe that would be an unreasonable policy to impose                                                                  
statewide whether a borough or municipality already does so or not.                                                             
                                                                                                                                
CO-CHAIRMAN HARRIS inquired as to whether mobile homes would be                                                                 
included in the definition of personal property.                                                                                
                                                                                                                                
REPRESENTATIVE OGAN read the following definition of personal                                                                   
property as found in Black's Law Dictionary, "Personal property                                                                 
includes money, goods, chattels, things in action, evidence of                                                                  
debt.  Personal property is divisible into corporal personal                                                                    
property and incorporeal personal property."                                                                                    
                                                                                                                                
Number 450                                                                                                                      
                                                                                                                                
STEVE VAN SANT, State Assessor, Department of Community & Regional                                                              
Affairs(DCRA), testified via teleconference.  He stated that most                                                               
assessors do not have a problem with HB 22 which encompasses what                                                               
is typically done.  In this particular case in Mat-Su, this was an                                                              
isolated incident.  Mr. Van Sant did not know of any written                                                                    
policies, but every assessor has been instructured not to enter a                                                               
home unless invited nor should an assessor enter a home if only                                                                 
children are present.  With regard to  who is in possession of a                                                                
property, there could be some problems.  For example, who is in                                                                 
possession when property is under construction or can an assessor                                                               
look around if no one is present.  Who should the assessor contact                                                              
when inspecting a commercial property?  Mr. Van Sant believed that                                                              
the case that prompted HB 22 involved miscommunication.                                                                         
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked if the rule in which assessors ask                                                               
permission before entering a property was an unwritten rule or is                                                               
it contained in any municipal or borough ordinances.                                                                            
                                                                                                                                
MR. VAN SANT did not know of any written manuals or policies.  As                                                               
a former assessor in Anchorage and Mat-Su, Mr. Van Sant said that                                                               
all new appraisers are instructed not to enter a premise unless                                                                 
permission is granted.  Mr. Van Sant agreed with Representative                                                                 
Murkowski that it was an industry practice.                                                                                     
                                                                                                                                
Number 511                                                                                                                      
                                                                                                                                
CO-CHAIRMAN HALCRO inquired as to who would be liable if an                                                                     
assessor is in the property and the assessor falls down the stairs                                                              
or is bitten by a dog.                                                                                                          
                                                                                                                                
MR. VAN SANT did not know.  The industry discourages even opening                                                               
a door if someone inside says, "Come in"  because children could be                                                             
home alone.  The industry does not want assessors in the house with                                                             
underage children.                                                                                                              
                                                                                                                                
CO-CHAIRMAN HARRIS noted that he had never heard of any assessor                                                                
entering a home in Valdez without being invited.  The assessor                                                                  
would note that he/she could not enter the dwelling, therefore, the                                                             
assessment could be higher or lower based on that criteria.  Is                                                                 
that always the case?  Co-Chairman Harris characterized HB 22 as                                                                
housekeeping.                                                                                                                   
                                                                                                                                
MR. VAN SANT believed that to be the case.  An assessor would                                                                   
hopefully report a better indication of value if he/she could enter                                                             
the dwelling.  Mr. Van Sant noted that he had been an assessor for                                                              
over 30 years and very rarely is an assessor allowed inside a home.                                                             
                                                                                                                                
Number 550                                                                                                                      
                                                                                                                                
WAYNE HEARER, Municipal Assessor and Director of Property                                                                       
Appraisal, Municipality of Anchorage, testified via teleconference.                                                             
He informed the committee that he had been in the appraisal and                                                                 
assessment practice in Alaska for nearly 20 years.  Mr. Hearer said                                                             
that respect for property owners has always been maintained.  He                                                                
noted that he had worked in this capacity in Kodiak, Kenai, and                                                                 
Anchorage.  In all three municipalities, if no one is home a door                                                               
hanger was left requesting contact from the property owner.  Mr.                                                                
Hearer echoed Mr. Van Sant's comments regarding the industry                                                                    
practice to not enter a premise without permission.                                                                             
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked if this legislation was necessary or                                                             
helpful in light of the current industry practice.                                                                              
                                                                                                                                
MR. HEARER said that initially he did not have a problem with HB 22                                                             
because it specified how the industry already interprets AS Section                                                             
29.45.130(b).  Mr. Hearer expressed the need to clarify the                                                                     
definition of possession and permission.                                                                                        
                                                                                                                                
REPRESENTATIVE OGAN agreed with Co-Chairman Harris'                                                                             
characterization of HB 22 as a housekeeping measure.  This                                                                      
legislation simply clarifies the existing unwritten policy of the                                                               
assessors.  Representative Ogan believed that the current statute                                                               
violates the constitutional principle of right to privacy.                                                                      
                                                                                                                                
REPRESENTATIVE OGAN recommended the following, page 1, line 10                                                                  
insert "actual" before "possession" and on line 9, insert "written"                                                             
before "permission".  Representative Ogan further recommended                                                                   
including language that would "exempt buildings under construction                                                              
and possession of a general contractor" which would allow assessors                                                             
to enter building under construction without any impediment.  In                                                                
response to Co-Chairman Harris, Representative Ogan did not know                                                                
exactly where to insert the language and thought it may be for the                                                              
committee to discuss.                                                                                                           
                                                                                                                                
Number 607                                                                                                                      
                                                                                                                                
REPRESENTATIVE KOOKESH expressed concern with the procedure to                                                                  
attain written permission.  Will a written form be required?  If                                                                
written permission is required a burden is created for someone.                                                                 
                                                                                                                                
REPRESENTATIVE OGAN foresaw an assessor getting a form initialed to                                                             
enter a dwelling before entering.  Placing this in statute could                                                                
expose municipalities to liability if there is a violation with                                                                 
civil action.  This type of procedure is required of Fish &                                                                     
Wildlife Protection officers for search and seizures.                                                                           
                                                                                                                                
REPRESENTATIVE DYSON asked if HB 22 had a Judiciary referral.                                                                   
                                                                                                                                
REPRESENTATIVE OGAN replied no.                                                                                                 
                                                                                                                                
REPRESENTATIVE DYSON said that it seemed the committee could pass                                                               
HB 22 with individual recommendations, deal with changes in the                                                                 
committee, or hold the bill to Thursday when the sponsor could come                                                             
back with the changes incorporated in a committee substitute.  He                                                               
inquired as to the preference of Representative Ogan.                                                                           
                                                                                                                                
REPRESENTATIVE OGAN said that he would be happy to accommodate the                                                              
Chair's wishes.                                                                                                                 
                                                                                                                                
REPRESENTATIVE JOULE asked if HB 22 would necessitate the property                                                              
owner physically getting up and answering the door.  Representative                                                             
Joule said that he typically says, "Come in."                                                                                   
                                                                                                                                
REPRESENTATIVE OGAN said that if he were the assessor, he would                                                                 
open the door and identify himself as the state assessor and ask if                                                             
the owner would still allow him to enter the premise.                                                                           
                                                                                                                                
Number 657                                                                                                                      
                                                                                                                                
CO-CHAIRMAN HARRIS said that HB 22 would be held to Thursday's                                                                  
meeting so that Representative Ogan could work on this.                                                                         
Co-Chairman Harris asked Mr. Van Sant if he believed that this                                                                  
would be an unfair burden on the state or local assessor.                                                                       
                                                                                                                                
MR. VAN SANT believed that the written permission would be                                                                      
burdensome, seem to inhibit the process and perhaps intimidate                                                                  
people.  Assessors are not searching for anything.  To obtain                                                                   
permission is not a problem and is already practiced.  Mr. Van Sant                                                             
believed that written permission could result in inequities in                                                                  
assessments.  With regard to mobile homes, mobile homes are                                                                     
considered personal property by statute unless classified otherwise                                                             
by ordinance.  Mr. Van Sant said that he would be happy to work                                                                 
with the sponsor.                                                                                                               
                                                                                                                                
CO-CHAIRMAN HALCRO agreed with the intent of the legislation, but                                                               
written permission would seem problematic.                                                                                      
                                                                                                                                
REPRESENTATIVE OGAN inquired as to if the assessors had an opinion                                                              
on including the exemption for construction sites.                                                                              
                                                                                                                                
MR. HEARER did not see a problem with inclusion of that exemption.                                                              
Mr. Hearer also offered to work with the sponsor.                                                                               
                                                                                                                                

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