Legislature(1995 - 1996)
04/12/1996 08:20 AM FIN
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
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 In response to a question by Representative Brown, Representative Mulder noted that the Legislature repealed previous statutes regarding title requirements for mobile homes.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.