DRUG BILL COULD SNARE COMPANIES

Some California businesses are wondering if the war on drugsmight be putting them in the line of fire.

Senate Bill 1754, by Sen. Charles Calderon, D-Montebello,broadens the basis on which companies and business owners could besued over narcotics use.

Federal and state authorities already can seize property oflandlords who cannot prove they were not negligent in uncovering drugactivity. Never mind that this has the burden of proof backward.The confusion is compounded by the fact that the Drug EnforcementAdministration has no clear definition of what constitutes duevigilance and diligence.

Now comes SB 1754. Dubbed the "Drug Dealer Liability Act," ithas the potential of opening California companies to lawsuits if asingle corporate executive, employee, investor or partner isconvicted of "giving away, possessing or distributing drugs."

Like the fuzzy DEA directive, the bill raises some interestingscenarios.

For example, say a principal hotel owner with a drug problem isconvicted after giving drugs to an employee.

Or this: An apartment manager fails to report that a tenant isdistributing drugs from the property. But that manager is found in acivil suit to have had knowledge of the activity.

Theoretically, any California resident - yes, even convicteddrug users - could file civil suits against the businesses, claimingthey have been harmed directly or indirectly by the "same type" ofdrug.

SB 1754 also could allow other employers to claim lostproductivity of drugged-out employees.

"Just imagine how many civil suits could arise out of a countythe size of Los Angeles," marvels Ross Regnart, a Lake Tahoe-basedproperty manager.

Granted, it all seems far-fetched, and it's hard to imaginejuries awarding big cash payments. But nothing's out of the questionwhen pit-bull lawyers and open-ended racketeering laws are involved.

SB 1754 has passed the Senate and awaits action in the Assembly.

Valley home resales were up 10.3 percent in the first half of1996 compared with 1995. Condominium resales jumped 64.4 percent forthe same period, according to the San Fernando Valley Association ofRealtors.

"Most of today's sales are focused on homes priced under$250,000," said John Maquar, president of the group.

The average price of single-family homes hit $233,400 in June,up 2.8 percent from a year ago and 6.9 percent over May. Condoprices leveled off at $99,300, matching the year-ago number.

The number of homes closing escrow rose to 985 in June while 265condominium sales closed - a 44 percent increase from June 1995.

Et Cetera . . .

The Woodland Hills Chamber of Commerce will sponsor a CommunityCleanup Day on Sept. 21. Volunteers are invited to meet at WarnerCenter Park, 5800 Owensmouth Ave., at 7:30 a.m. Work runs until 1:30p.m., when participants will be served lunch. . . .

California's Real Estate Journal reports that Ventura County'sWestlake Promenade received the third-biggest construction loan inCalifornia in June. Tokai Bank issued a first loan of $33 million,exceeded only by a $35 million project in San Diego County and a$34.8 million venture in Sacramento. . . .

Did you know? State Farm, Allstate and Farmers account for 55.5percent of California's homeowner policies? But that percentage isbound to drop as Allstate and Farmers are not writing new coverage inL.A. County.

Ken Ward is business editor of the Daily News. He can bereached on the Internet at kenricwardaol.com