Legislature(1995 - 1996)

04/12/1996 08:20 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL NO. 436                                                           
                                                                               
       "An Act relating  to purchase and sale  of mobile homes                 
       by  mobile  home  dealers  or  agents; to  mobile  home                 
       titles; and providing for an effective date."                           
                                                                               
  TOM ANDERSON, STAFF, REPRESENTATIVE MARTIN noted that HB 436                 
  was introduced  at the  request of  the Alaska  Manufactured                 
  Housing Association.  He noted that current statutes  do not                 
  provide for titling  of mobile homes.   The bill will  title                 
  mobile homes under the Division of Motor Vehicles.  He noted                 
  that mobile home dealers are not currently licensed or under                 
  regulations.  The  legislation would also place  mobile home                 
  dealers under the  purview of  the Division of  Occupational                 
  Licensing, Department of Commerce and Economic  Development.                 
  A bond of $50.0 thousand dollars would be required of mobile                 
  home  dealers.     Representative  Martin  added   that  the                 
  legislation    will    place   dealers    under   disclosure                 
  requirements.                                                                
                                                                               
  Representative Brown  questioned if  mobile homes  should be                 
  sold by  licensed real  estate agents.   She  asked how  the                 
  legislation will protect the  public.  Representative Martin                 
  noted the bonding requirements.                                              
                                                                               
  Representative Mulder  stressed the  need for  bonding.   He                 
  noted that  mobile homes represent  substantial investments.                 
  In  response   to  a   question  by   Representative  Brown,                 
  Representative Mulder  noted that  the Legislature  repealed                 
  previous statutes  regarding title  requirements for  mobile                 
  homes.  He  observed that problems  occurred as a result  of                 
  that action.                                                                 
                                                                               
  In  response  to  a question  by  Representative  Kelly, Mr.                 
  Anderson noted that banks and lending institutions require a                 
                                                                               
                                2                                              
                                                                               
                                                                               
  certificate  of title  for financing.   He  noted  that long                 
  after a cash sale the buyer's unit and a seller's collateral                 
  can be claimed by an unknown lien holder.                                    
                                                                               
  Representative Kelly asked if title companies only deal with                 
  real property.   Representative Mulder stressed  that mobile                 
  homes  are on wheels.   He noted that  the Division of Motor                 
  Vehicles has  requested that  the fee  schedule reflect  the                 
  cost of administration.                                                      
                                                                               
  Representative Brown  noted that  the change  from "may"  to                 
  "shall"  will require titles  to be issued.   She questioned                 
  the affect on current owners.                                                
                                                                               
  Representative Mulder  stressed that  titles will be  issued                 
  during the transference of ownership.   Owners will not have                 
  to get titles immediately.   He noted that the  Division has                 
  the ability to charge for titling.                                           
                                                                               
  Representative Martin  noted that approximately  124 dealers                 
  would want to be  licensed.  Mr. Anderson estimated  that 20                 
  to 30 titles will be issued a year.                                          
                                                                               
  Representative Brown  expressed concern that owners  will be                 
  required to  obtain titles.   Representative Mulder  pointed                 
  out that the alternative  is to require a $500  dollar title                 
  search.                                                                      
                                                                               
  Representative Parnell MOVED to report CSHB 436 (TRA) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.   Representative Kohring OBJECTED.                 
  He asserted that the legislation will help big operators and                 
  hurt small operators.  He expressed concern with the bonding                 
  requirement.    He asked  for  evidence of  consumer concern                 
  regarding current practices.                                                 
                                                                               
  Representative Mulder  disclosed that  he is  a mobile  home                 
  owner and real estate agent.                                                 
                                                                               
  Mr. Anderson  noted that a $50.0 thousand  dollar bond would                 
  cost   approximately   $1.5   thousand   dollars   a   year.                 
  Representative  Kohring noted  that the  bonding requirement                 
  assumes   that  the   individual  has   the   proper  credit                 
  credentials.                                                                 
                                                                               
  A roll call  vote was taken on  the MOTION to move  CSHB 436                 
  (TRA) out of Committee.                                                      
                                                                               
  IN FAVOR: Brown,   Grussendorf,   Navarre,   Kelly,  Martin,                 
  Mulder,        Parnell, Therriault, Foster, Hanley                           
  OPPOSED:  Kohring                                                            
                                                                               
                                                                               
                                3                                              
                                                                               
                                                                               
  The MOTION PASSED (10-1).                                                    
                                                                               
  CSHB  436  (TRA)  was  reported out  of  Committee  with "no                 
  recommendation"  and  with  a  fiscal  impact  note  by  the                 
  Department  of  Commerce  and  Economic  Development,  dated                 
  4/2/96 and  with a  zero fiscal  note by  the Department  of                 
  Public Safety, dated 4/2/96.                                                 

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