Legislature(2009 - 2010)BARNES 124
04/05/2010 01:00 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB416 | |
| HCR21 | |
| HB389 | |
| SB269 | |
| SB272 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 416 | TELECONFERENCED | |
| + | HCR 21 | TELECONFERENCED | |
| + | HB 389 | TELECONFERENCED | |
| + | SB 269 | TELECONFERENCED | |
| + | SB 272 | TELECONFERENCED | |
SB 272-RENTAL CAR CHARGES
2:10:24 PM
CHAIR OLSON announced that the final order of business would be
SENATE BILL NO. 272, "An Act relating to charges for rented
motor vehicles, including cost recovery fees, and making a
violation of the rented motor vehicle charge provisions an
unfair trade practice."
2:10:32 PM
EDRA MORLEDGE, Staff, Senator Charlie Huggins, Alaska State
Legislature, paraphrased from the sponsor statement, as follows
[original punctuation provided]:
SB 272 is a technical bill that would allow rental car
companies to do in Alaska what they already do in thirty
other states. Alaska law is currently silent on the issue
of separately-listed charges on rental car statements for
the recovery of fees. This bill would require those fees to
be listed separately and clearly identified on the rental
car agreement.
The industry standard is to turn over the rental car fleet
every twelve months and to associate the costs of licensing
the vehicles, concessions, and airport or facility-related
costs with the vehicles themselves. In addition to
government taxes and surcharges, rental car companies
assess additional "cost recovery fees" to offset those
costs. Consumers should be made aware, and be able to see
the fees they are charged, on both the rental bill and in
an online quote. This bill would provide full disclosure
and transparency of "cost recovery fees" included in rental
car agreements. In addition, this legislation would make
violating the provision an unfair trade practice.
MS. MORLEDGE stated that this bill is a consumer protection bill
modeled on car rental legislation that has passed in 30 other
states, 10 of which have passed similar legislation in past
three years. The bill previously passed the Alaska Senate
unanimously and has industry support and is supported by the
Department of Law. She encouraged the committee to support SB
272.
2:12:19 PM
REPRESENTATIVE BUCH recalled a disclosure bill that applied to
documentation fees by car dealers on sales of vehicle
documentation fee. It seemed to him that car dealers were able
to charge a fee for basically "not doing anything."
CHAIR OLSON pointed out the referenced bill applied to car
dealers and not car rental agencies.
REPRESENTATIVE BUCH suggested this bill requires similar
disclosure which would only apply to car rental agencies.
MS. MORLEDGE referred to page 2, line 19 to the definition of
car which read, "(1) "car" means motor vehicle." She related
that the bill drafter indicated this would apply to all motor
vehicle rentals.
2:13:46 PM
SHANE SKINNER, Controller/Business Manager, Enterprise Rental
Cars, clarified the car rental charges. He stated that
currently there is "nothing on the books" in Alaska on car
rental charges. This bill would clarify the allowable charges
plus it would limit the charges to those remitted to the state
for car rental taxes, airport taxes and fees, which are remitted
to airports to run the facilities, and vehicle registration
fees. This bill would cap the amount that is allowable to be
collected to the state or airport authority.
2:14:33 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on SB 272.
2:14:50 PM
REPRESENTATIVE T. WILSON moved to report SB 272 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, SB 272 was reported from the
House Labor and Commerce Standing Committee.