HB 282-LANDLORD AND TENANT ACT  1:42:57 PM CHAIR KELLER announced the next order of business would be HOUSE BILL NO. 282, "An Act relating to the rights and obligations of residential landlords and tenants; and relating to the taking of a permanent fund dividend for rent and damages owed to a residential landlord." [Before the committee was CSHB 282(L&C), labeled Version 28- LS0930\P, Bullock, 3/20/14.] 1:43:51 PM REPRESENTATIVE DOUG ISAACSON, Alaska State Legislature, speaking as the sponsor, stated that CSHB 282, Version 28-LS0930\P, is a landlord and tenant bill. He advised that much of the bill reflects the proposed changes in the Uniform Residential and Landlord Tenant Act which is before Congress but has not been adopted. He reminded the committee that twenty-one states have adopted the sample uniform law. Two changes to the uniform act found in HB 282 involve adding unpaid rent or damages owed to landlords to the list of conditions found in AS 43.23.065(b) where yearly Permanent Fund Dividends can be garnished, and a provision for dry cabins, which needs clarification on its application in Alaska. Representative Isaacson observed HB 282 is a well-balanced bill. In response to Representative Gruenberg, he said there are four proposed amendments for consideration. REPRESENTATIVE LEDOUX asked whether a landlord must disclose if he is on the Alaska Sex Offender Registry. REPRESENTATIVE ISAACSON said yes. REPRESENTATIVE LEDOUX then asked whether a landlord must disclose if any tenants living on the premises are on the sex offender registry, and if not, why not. 1:47:19 PM BRENDA HEWITT, Staff, Representative Doug Isaacson, Alaska State Legislature, stated that the sponsor was advised by legal counsel that it probably is not the responsibility of the landlord to keep tenants informed and that tenants should use the registry provided by state law. REPRESENTATIVE ISAACSON added that this question is similar to other occupancy issues in that it is up to homebuyers or renters to find out who their neighbors are. 1:48:38 PM REPRESENTATIVE LEDOUX moved to adopt [Amendment 1] labeled 28- LS0930\P.1, Bullock, 3/20/14 which read: Page 7, following line 19: Insert a new bill section to read:  "* Sec. 10. AS 34.03.080 is amended by adding a new subsection to read: (e) If the landlord is registered in the central registry of sex offenders and child kidnappers maintained under AS 18.65.087, the landlord or a person authorized to enter into a rental agreement on behalf of the landlord shall disclose to an individual that the landlord is registered in the central registry. The disclosure must be made in writing after an individual accepts the offer to rent the premises but before the rental agreement is signed. After receiving the notice under this subsection, the individual may decline to rent the premises." Renumber the following bill sections accordingly. Page 13, following line 1: Insert a new bill section to read:  "* Sec. 18. AS 34.03.360(11) is amended to read: (11) "landlord" means the owner, lessor, or sublessor of the dwelling unit or the building of which it is a part, and it also means a manager of the premises who fails to disclose as required by AS 34.03.080(a) - (c) [AS 34.03.080];" Renumber the following bill sections accordingly. Page 13, line 30: Delete "Sections 4 - 16" Insert "Sections 4 - 18" CHAIR KELLER objected for the purpose of discussion. REPRESENTATIVE LEDOUX posed a scenario wherein six months after one has done their "due diligence," signed a lease, and moved in, the landlord rents to someone who is listed on the sex offender registry. She asked whether that is grounds to default on the lease. 1:49:08 PM REPRESENTATIVE ISAACSON said no. He opined that putting unrealistic demands on a landlord for actions "that might happen," creates too much risk and many landlords may withdraw their properties and reduce the availability of affordable housing for tenants. He deferred to the Department of Law to further address the question. 1:50:37 PM CLYDE (ED) SNIFFEN Jr., Senior Assistant Attorney General, Commercial and Fair Business Section, Civil Division(Anchorage), Department of Law, informed the committee he serves in the Consumer Protection Unit at the Department of Law (DOL). He stated that it is equally incumbent upon tenants to determine the status of individuals in a unit. There is no special knowledge that a landlord would have access to that a tenant would not. Regarding a circumstance wherein someone is placed on the registry after a tenant has moved in, he agreed with Representative Isaacson that "those things happen," and the remedies are to discuss the issue with the landlord or to move at the end of the lease. REPRESENTATIVE LEDOUX understood. However, she pointed out that section 14 of the proposed bill allows a tenant to terminate a rental agreement if the tenant is a victim of domestic violence. She opined the aforementioned circumstance is also applicable under the same argument of "things happen, and it shouldn't be the landlord's responsibility." MR. SNIFFEN advised that proposed section 14, which allows the victim of domestic violence to terminate a lease, requires a showing of serious conduct, followed by a filing of reports establishing a salient issue. However, the risk from a registered sex offender is unknown. He said, "I can see some parallels, but I think they are a little different." 1:54:30 PM REPRESENTATIVE LEDOUX stated that if two parties jointly purchase a house, but domestic violence occurred and one party wanted to move out, that circumstance would not release either party from their mortgage. MR. SNIFFEN said correct. Depending on the terms of the mortgage, if the person living in the house could not make the obligations of the mortgage, the lender could foreclose or refinance. In a rental scenario, most of the issues are addressed in the rental agreement; for example, one party may leave for a variety of reasons and the landlord may have the right to renegotiate the rental agreement or evict the remaining tenant. CHAIR KELLER suggested that the sponsor of the bill work with individual members of the committee to resolve questions. REPRESENTATIVE LYNN asked whether a landlord has the right to refuse to lease or rent to an applicant who is a registered sex offender. REPRESENTATIVE ISAACSON deferred to Mr. Sniffen. In further response to Representative Lynn, he said he did not believe that circumstance was an express provision of the proposed bill, and that further information would be provided to the committee. 1:59:09 PM DICK BLOCK, Mellen Investment Company, noted his previously submitted written testimony was included in the committee packet. He concurred with the concerns stated by Representative LeDoux, adding that he did not think proposed section 14 was necessary; however, if section 14 is appropriate from a public policy standpoint, Mr. Block strongly urged the committee to review the amendments he submitted in his written testimony in order to ensure clarity in the proposed bill. 2:00:43 PM KIRK MAYNARD, Owner/Broker, Coldwell Banker Gold Country, informed the committee his company has been in property management approximately six years and manages approximately four hundred "doors." He said since there was a lot of material to review regarding the bill and proposed amendments, he would defer his testimony to the next hearing. REPRESENTATIVE GRUENBERG recalled the Seventeenth Alaska State Legislature addressed property disclosure requirements. He suggested researching current disclosure laws to find precedence for this debate. 2:03:54 PM [The motion by Representative LeDoux to adopt Amendment 1 was left pending with an objection for the purpose of discussion from Chair Keller. HB 282 was heard and held.]