SENATE STATE AFFAIRS COMMITTEE March 24, 1993 9:00 a.m. MEMBERS PRESENT Senator Loren Leman, Chairman Senator Mike Miller, Vice Chairman Senator Robin Taylor Senator Jim Duncan MEMBERS ABSENT Senator Johnny Ellis COMMITTEE CALENDAR SENATE BILL NO. 168 "An Act relating to newspapers of general circulation." SENATE BILL NO. 158 "An Act relating to exemption amounts." SENATE BILL NO. 155 "An Act relating to landlords and tenants, to termination of tenancies and recovery of rental premises, to tenant responsibilities, to the civil remedies of forcible entry and detainer and nuisance abatement, and to the duties of peace officers to notify landlords of arrests involving certain illegal activity on rental premises." PREVIOUS SENATE COMMITTEE ACTION SB 168 - See State Affairs minutes dated 3/22/93. SB 158 - No previous action to record. SB 155 - No previous action to record. WITNESS REGISTER Steve Phillips Ketchikan Credit 320 Bauden, #302 Ketchikan, Alaska POSITION STATEMENT: Supported SB 158. David Skidmore, Legislative Aide to Senator Steve Frank State Capitol Juneau, Alaska 99811-1182 POSITION STATEMENT: Commented on SB 155. Eugene Smith Evergreen Properties 8930 Mendenhall Loop Rd. Juneau, Alaska 99801 POSITION STATEMENT: Supported SB 155. Pat Conheady 231 S. Franklin Juneau, Alaska 99801 POSITION STATEMENT: Supported SB 155. Doug Isaacson Tenant Watch P.O. Box 72739 Fairbanks, Alaska 99707 POSITION STATEMENT: Supported SB 155. Dan Bissell Dixon Apartments 100 10th Ave. Fairbanks, Alaska 99701 POSITION STATEMENT: Supported SB 155. Charles Lippitt 2203 McKinley Ave. Anchorage, Alaska 99503 POSITION STATEMENT: Supported SB 155. Alice Brewer, Executive Secretary Alaska Landlord and Property Manager's Association 1201 W 45 th Ave. Anchorage, Alaska 99517 POSITION STATEMENT: Supported SB 155. Dave Erlich 2308 W 47th Anchorage, Alaska 99517 POSITION STATEMENT: Supported SB 155. Kris Gratrix 1327 W 27th, # 100 Anchorage, Alaska 99503 POSITION STATEMENT: Supported SB 155. Hans Metz 5305 E 42nd Ave. Anchorage, Alaska 99508 POSITION STATEMENT: Supported SB 155. John Todd 13320 Crestview Dr. Anchorage, Alaska 99516 POSITION STATEMENT: Supported SB 155. Jerry Haggerty 1016 E. 12 th Ave., #1 Anchorage, Alaska 99501 POSITION STATEMENT: Supported SB 155. Jan Evensen 838 Irwin, Apt. 6 Anchorage, Alaska 99508 POSITION STATEMENT: Supported SB 155. Edgar Preiss 4722 Melvin Ave. Anchorage, Alaska 99517 POSITION STATEMENT: Supported SB 155. Gene and Diana Rash 9000 Honeysuckle Anchorage, Alaska 99502 POSITION STATEMENT: Supported SB 155. Fitz Mitchell 1716 Crescent Anchorage, Alaska 99508 POSITION STATEMENT: Supported SB 155. Donald Blanc 415 5th Ave. Fairbanks, Alaska 99701 POSITION STATEMENT: Supported SB 155. Myra Sheets 1028 Evergreen St., #1 Fairbanks, Alaska 99709 POSITION STATEMENT: Supported SB 155. Barbara Cardin 415 5th Ave. Fairbanks, Alaska 99701 POSITION STATEMENT: Supported SB 155. Cindy Helms 1615 Carr #1 Fairbanks, Alaska 99709 POSITION STATEMENT: Supported SB 155. Meredith Coats 2546 Talkeetna Fairbanks, Alaska 99709 POSITION STATEMENT: Supported SB 155. Roy Helms 1452 Noble St Fairbanks, Alaska 99701 POSITION STATEMENT: Supported SB 155. Sam Medsker 1983 Yankovich Rd. Fairbanks, Alaska 99709 POSITION STATEMENT: Supported SB 155. Jerry Hassel P.O. Box 49 Ester, Alaska 99725 POSITION STATEMENT: Supported SB 155. Ruth Gudschinsky 1622 Lauren Rd. Fairbanks, Alaska 99701 POSITION STATEMENT: Supported SB 155. Henry Wadle 1012 Pedro Street Fairbanks, Alaska 99701 POSITION STATEMENT: Supported SB 155. Don Wadle 4888 Old Airport Way Fairbanks, Alaska 99706 POSITION STATEMENT: Supported SB 155. Nils Braastad 135 Craig Fairbanks, Alaska 99701 POSITION STATEMENT: Supported SB 155. Ruth Peger 3873 Peger Rd. Fairbanks, Alaska 99709 POSITION STATEMENT: Supported SB 155. Jerome Byrd 2224 Eastland Fairbanks, Alaska 99701 POSITION STATEMENT: Supported SB 155. ACTION NARRATIVE TAPE 93-22, SIDE A Number 001 CHAIRMAN LEMAN called the Senate State Affairs Committee meeting to order at 9:00 a.m. and announced SB 168 (NEWSPAPER OF GENERAL CIRCULATION DEFINED) to be up for consideration. SENATOR TAYLOR moved to adopt CSSB 168 (STA) as the working draft for the committee. There were no objections and it was so ordered. SENATOR TAYLOR moved to pass CSSB 168 (STA) from committee with individual recommendations. There were no objections and it was so ordered. Number 38 SENATOR LEMAN announced SB 158 REDUCING EXEMPTION AMOUNTS to be up for consideration. STEVE PHILLIPS, owner of three credit bureaus in Southeast Alaska, said most of their debtors are debtor proof. Essentially, you have to make at least $16 per hour to have wages garnished, he said. They want to bring the credit lines closer to what it is in the rest of the country. He said they have buried court with judgements, but nothing is happening with them. Number 120 SENATOR MILLER said he had a problem with the $2,100 exemption for personal items. He didn't think it was enough, but he had no problem with the wages. Number 188 MR. PHILLIPS explained they have been pursuing a lady for a couple of years who wears minks down the street. She works for the state. They tried to attach her wages so she changed her retirement program and got below the exemption again. He explained that the exemption is not for a composite, but for individual items. SENATOR MILLER thought the Judiciary Committee could check into that issue. SENATOR TAYLOR asked if the wage was net or gross. MR. PHILLIPS said it's the net take-home after child support and everything. MR. PHILLIPS pointed out that it is bad for the economy if people don't pay their debts. Number 232 SENATOR TAYLOR moved to pass SB 158 from committee with individual recommendations. There were no objections and it was so ordered. SENATOR LEMAN announced SB 155 USE OF RENTED PROPERTY/LAW VIOLATIONS to be up for consideration. SENATOR FRANK, sponsor, said provisions in this bill gave a landlord the ability to control their contractual relationship. One of the issues the bill deals with is that the check list can be used as evidence of prior condition of the apartment without getting a witness. Number 314 DAVID SKIDMORE, Legislative Aide for Senator Frank, said SB 155 reduces the time a landlord must wait before going to court to commence eviction proceedings. Specifically in the event the tenant does not pay rent when it's due, it changes the days from 10 to 5 days. It revises the legal obligations of the tenant to make them more stringent and reworks the statutory definition of damages. It adds to the landlord's ability to seek removal of abusive tenants through the check list process. A premises statement and a contents inventory list may be incorporated into the agreement and stipulates how they may be used in court. It includes provisions to amend Alaska nuisance abatement statutes. Number 350 EUGENE SMITH, owner of Evergreen Properties, said he has experienced losses in excess of $10,000 from irresponsible tenants and inability to collect judgements. Part of the problem does relate to the time frame currently required to evict tenants. He supported SB 155. SENATOR LEMAN asked if he had personal experience with the 10 day requirement. MR. SMITH said he has had numerous experiences. He said it is a full month before you can begin the eviction process. SENATOR FRANK remarked it seemed that there was a direct relation between the amount of time it took to evict a tenant and the amount of the deposit. MR. SMITH said ideally that was true, but from the standpoint of human compassion it was unrealistic when dealing with marginal tenants. Number 446 PAT CONHEADY said his firm represents 4 trailer courts and 60 to 70 residential units in Juneau. He endorsed SB 155, specifically the property condition and the reduction to 5 days notice on non-payment of rent. MR. CONHEADY corrected MR. SMITH by saying you can go to court after the 10 day notice. MR. CONHEADY said a couple of other problems they see are the provision for the attorney's fees which is unclear as written. Number 510 DOUG ISAACSON, Alaska Statewide Director of Credit Services, Inc., a credit screening service for landlords, said he sees landlords as credit grantors. However, landlords are not treated as business people when they try to terminate a lease in a timely or expeditious manner. He supported SB 155 as a first step to help expedite a landlord's ability to reclaim his property. He said this bill would not make anything harder on the tenant, but it would help the landlord to have the right to treat his property from an economic point of view. SENATOR LEMAN said he intended to move the bill today and asked if anyone opposed the bill. There were no comments. Number 560 DAN BISSELL, apartment manager, supported most of the testimony and supported SB 155. Number 579 CHARLES LIPPITT, Anchorage, strongly supported SB 155. TAPE 93-22, SIDE B Number 585 ALICE BREWER, Executive Secretary, Alaska Landlord and Property Manager's Association, strongly supported SB 155, especially the police notifying the landlord if there is a drug arrest, the premises condition statement, and changing the notification time to 5 days. Number 570 DAVE ERLICH, Anchorage, suggested some changes on page 5, line 5 the word "prostitution" should be changed to include "assignation." SENATOR LEMAN said that Senator Taylor said he would take that up in the Judiciary Committee. SENATOR TAYLOR explained that the Senate was being called to order and asked if anyone opposed the bill. There was no opposition. In Anchorage the following people were in support of SB 155: CHRIS GRATRIX, HANS METZ, JOHN TODD, JERRY HAGGERTY, JAN EVENSEN, EDGAR PREISS, GENE and DIANA RASH, and FITZ MITCHELL. In Fairbanks the following people were in support of SB 155: DONALD BLANC, MYRA SHEETS, BARBARA CARDIN, CINDY HELMS, MEREDITH COATS, ROY HELMS, SAM MEDSKER, JERRY HASSEL, RUTH GUDSCHINSKY, HENRY WADLE, DON WADLE, NILS BRAASTAD, RUTH PEGER, and JEROME BYRD. Number 492 SENATOR MILLER moved to pass SB 155 from committee with individual recommendations. There were no objections and it was so ordered. SENATOR LEMAN adjourned the meeting at 10:01 a.m.