SB 195 - COMMON LAW LIENS MR. TIM BENINTENDI, staff to Senator Kelly, presented SB 195 as a bill designed to reduce filing of nuisance liens as a form of retribution. He said such liens have been filed maliciously against property owned by public officials who have fallen into disfavor with opposing groups. MR. BENINTENDI stated these liens rarely have a commercial foundation and are used as harassment. SB 195 would make it a misdemeanor to file this type of lien and ease the process of releasing or invalidating the lien. The bill would also set out civil penalties for filers of such liens. MR. BENINTENDI mentioned the bill enjoys wide support and carries two zero fiscal notes. CHAIRMAN TAYLOR asked for a general explanation of a common law lien. MR. BENINTENDI characterized it as a filing against property on behalf of an individual who feels they have an action against the property owner. MR. DOUG WOOLIVER, representing the Alaska Court System, acknowledged this is a growing problem in Alaska. He said this type of lien has no relation to the property itself. Usually, a lien has a direct connection to the property, as in a lien placed against a building as a result of non-payment of construction services. MR. WOOLIVER said this common law lien has been used in retribution for zoning enforcement actions, specifically against public officials. In one case, the lien itself specified it was in retaliation for a zoning enforcement act. He added this action has been threatened against employees of the child support enforcement division, clerks of court, magistrates, police officers and others. He stated there are plenty of legitimate liens available to people with a claim. He added this bill is narrowly drafted to deal with this problematic non-consensual common law lien. SENATOR PARNELL asked if there are categories of common-law liens. MR. WOOLIVER replied the only legitimate type of common law lien was several years ago, recorded by a real estate agent who alleged misdealing by a client. SENATOR PARNELL asked if this is the same thing as a lis pendens and CHAIRMAN TAYLOR questioned if it would affect lis pendens liens. MR. WOOLIVER said it will not affect the separate entity of lis pendens, which informs people a title is in dispute. He said, unlike a lis pendens, these non-consensual common law liens do not allege a title is in dispute. CHAIRMAN TAYLOR informed the committee that common law property liens could still occur, but only when there is consent by the owner. MR. WOOLIVER agreed. SENATOR PARNELL asked what the maximum potential penalty for this offense would be. MR. WOOLIVER replied it would be a class A misdemeanor, with a possible $5,000 fine and up to a year in jail. Number 524 SENATOR PARNELL moved SB 195 from committee with individual recommendations. Without objection, the bill moved from committee.