Legislature(2005 - 2006)BUTROVICH 205
04/27/2006 08:30 AM Senate JUDICIARY
Audio | Topic |
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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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