CS FOR HOUSE BILL NO. 282(JUD) "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." 3:38:46 PM BRENDA HEWITT, STAFF, REPRESENTATIVE DOUG ISAACSON, informed the committee that the legislation contained provisions that had been requested by landlords, tenants, and property managers. She elaborated that the legislation allowed both the landlord and tenant to verify the premise condition statement, which catalogued the condition of the property. The bill provided for a long term pet deposit, which was previously capped to the same time limit as the security deposit cap of two months. Another provision of the bill defined "normal wear and tear," which was more suitable than the current language, "normal non-abusive living." The legislation required landlords to maintain a separate accounting of security deposits to ensure that the landlord had the funds to reimburse the renter for the deposit when vacating the premises. The bill allowed landlords to have up to thirty days to refund damage deposits to provide sufficient time to assess the cost of damage if damage was discovered. The current fourteen day time limit was retained if no damage was found. The bill defined "service animals', permitted the rental of dry cabins [cabins without running water], and allowed landlords to restrict the number of persons living in a dwelling. Additionally, the legislation permitted eviction for illegal activities. She furthered that the landlord may require professional dry cleaning of carpets if the landlord professionally dry cleaned the carpet prior to rental. Finally, HB 282 allowed landlords to attach a permanent fund dividend for unpaid rent or damages. Currently, dividend (PFD) attachment was legal, but the bill placed rent as a higher priority than commercial creditors. Senator Dunleavy inquired whether there would be a change in who would have access to the premises. Ms. Hewitt responded that the issue was not addressed in the legislation. ED SNIFFEN, ATTORNEY V, DEPARTMENT OF LAW, ANCHORAGE (via teleconference), confirmed that the bill did not change any laws related to access. ERROL CHAMPION, DIRECTOR, ALASKA ASSOCIATION OF REALTORS, supported the legislation. He related that he worked closely with the sponsor to develop the language in the bill and updated the provisions to protect both the tenant and the landlord. Vice-Chair Fairclough inquired when the bill was introduced. 3:44:40 PM AT EASE 3:44:57 PM RECONVENED Ms. Hewitt replied that the bill was introduced on February 22, 2014. Vice-Chair Fairclough requested clarity on the provision that placed rent or damages as a higher priority PFD attachment over commercial creditors. Ms. Hewitt detailed that there were established priorities for PFD attachment and the provision added rent and damages to the list as number eight. She shared that rent was intangible and landlords were not able to repossess possessions in lieu of unpaid rent, so the thought was to place landlords higher on the list than general creditors. Co-Chair Kelly CLOSED public testimony. HB 282 was HEARD and HELD in committee for further consideration.