Legislature(2011 - 2012)BARNES 124
03/28/2012 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB275 | |
| SB125 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 275 | TELECONFERENCED | |
| += | SB 125 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 125-MOTOR VEHICLE TRANSACTIONS
4:07:24 PM
CHAIR OLSON announced that the final order of business would be
SENATE BILL NO. 125, "An Act relating to certain vehicles,
including trailers; and relating to motor vehicle dealer
advertising, motor vehicle dealer sales of used motor vehicles,
motor vehicle sales contracts, motor vehicle service contracts,
and motor vehicle sales financing."
4:0802 PM
BOB PAWLOWSKI, Staff, Senator Kevin Meyer, Alaska State
Legislature, stated that SB 125 is a consumer protection bill to
protect and assist consumers in finding and purchasing
competitively priced motor vehicles which are offered in prices
that are clearly stated by the dealers. He related that SB 125
would update the statutes referred to as the Alaska Auto Dealers
Practices Act, clarifying several provisions concerning the
advertising of new and used automobiles, The revisions assist
consumers in understanding auto comparison pricing and
eliminates ambiguities contained in the current statutes. The
bill would assist dealers in following state law, a very key
element in the bill. This bill was drafted in conjunction with
the DOL to provide consumer protection in purchasing motor
vehicles and to dealers in pricing and advertising the vehicles.
He commended the auto dealers and Mr. Ed Sniffen, DOL, for the
work on the bill.
CHAIR OLSON mentioned the committee heard the companion bill
several weeks ago.
4:09:45 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on SB 125.
4:10:22 PM
REPRESENTATIVE JOHNSON inquired as to whether the bill versions
are the same.
MR. PAWLOWSKI agreed.
4:10:47 PM
REPRESENTATIVE MILLER expressed concern, noting he held
conversations with the Auto Dealers Association. He related a
scenario in which in a consumer walks on car lot and the dealer
has posted an advertised price on the vehicle's window. If he
consumer wants to pay the price he or she is finished.
CLYDE (ED) SNIFFEN, JR., Senior Assistant Attorney General,
Commercial/Fair Business Section, Civil Division (Anchorage),
Department of Law (DOL), answered that Representative Miller is
correct. Consumers would be able to purchase vehicles on the
lot with an advertised price posted, noting the advertised price
must include everything except for fees paid to a governmental
entity, such as title, registration, and taxes. He reiterated
these fees would be in addition to the price.
4:12:20 PM
REPRESENTATIVE MILLER asked whether this criterion is the same
if the car is new or used or if there is a distinction between
the two categories.
MR. SNIFFEN answered that the bill would apply to auto dealers'
advertised prices for new and used vehicles and would include
all costs except for fees to a governmental entity or third
party. In further response to Representative Miller, Mr.
Sniffen agreed that the fees would typically relate to
governmental entities, such as the Division of Motor Vehicles or
an entity for title, licensing or registration.
4:13:20 PM
REPRESENTATIVE MILLER related a scenario in which a consumer
opted for items such as winterizing, a battery blanket,
undercoating, or a specific credit union. He related his
understanding these options would be up to the consumer.
MR. SNIFFEN answered yes, the advertised price would be for the
vehicle and if the buyer wanted things such as extended service
contracts.
4:14:01 PM
REPRESENTATIVE MILLER asked for a definition of DOC fees.
MR. SNIFFEN answered that a DOC fee is a short hand acronym for
document preparation fees. He explained that DOC fees represent
the fees motor vehicle dealers add to the price of vehicle to
compensate them for preparing paperwork for obtaining the title
and licensing the vehicle. He pointed out that the DOC fee is
not a government fee, but represents the overhead that the
dealer absorbs in order to get the car ready to drive off the
car lot. The dealers charge a DOC fee, which typically in
Anchorage can range from $100-$200, but rarely would be as high
as $300.
4:15:07 PM
REPRESENTATIVE MILLER asked when the consumer would discover the
DOC fee and if it would be on the sticker.
MR. SNIFFEN answered that current statutes require that the DOC
fee be included in any advertised price for the vehicle. He
explained that the advertised price must include the fee. He
suggested that adding on the fee later would be in violation of
the statute; however, if a consumer negotiated a different price
with the dealer, such as negotiating the price from the $29,000
listed to $25,000, the current statute does not restrict adding
the DOC fee back into the price. He mentioned one caveat would
be if the person negotiated a $100 discount and the dealer
attempted to add on a $200 in the DOC fee so that the total
price exceeded the advertised price, the Department of Law would
have an issue with that practice.
REPRESENTATIVE MILLER concluded that Mr. Sniffen's testimony
reflects the information he was given by car dealers.
4:16:42 PM
REPRESENTATIVE SADDLER asked whether any provision in law is
required by used car sales to furnish the Kelley Blue Book price
to allow the consumer to check the trade-in value of a vehicle.
MR. SNIFFEN answered no. He suggested that many consumers
research the Kelley Blue Book price ahead of time. He said this
bill would require the book if a dealer was using the Kelley
Blue Book price for comparison.
REPRESENTATIVE SADDLER inquired as to whether this provision
would apply to new or used vehicles.
MR. SNIFFEN answered the current statutes relate to used cars.
He pointed out dealers use comparisons to the manufacturer's
suggested retail price (MSRP) for new vehicles, which is posted
on the vehicle in sticker form. Thus the Kelley Blue Book is
not normally needed for new vehicles. He reiterated that most
of the pricing information is already available on the window
sticker price.
REPRESENTATIVE SADDLER commented that typically the library has
copies of the Kelley Blue Books. He said he was just thinking
out loud.
4:19:34 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on SB 125.
4:19:59 PM
REPRESENTATIVE JOHNSON moved to report SB 125 out of committee
with individual recommendations and the accompanying zero fiscal
note. There being no objection, SB 125 was reported from the
House Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB275 Supporting Documents-Letter AARP 3-12-12.pdf |
HL&C 3/28/2012 3:15:00 PM |
HB 275 |