Legislature(1995 - 1996)
04/03/1996 03:28 PM L&C
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HB 436 - MOBILE HOME DEALERS & TITLES Number 1000 CHAIRMAN KOTT announced the next order of business would be CSHB 436(TRA), "An Act relating to purchase and sale of mobile homes by mobile home dealers; to mobile home titles; and providing for an effective date," sponsored by Representative Martin TOM ANDERSON, Legislative Assistant to Representative Terry Martin Alaska State Legislature, came before the committee to address HB 436. He informed the committee the bill was introduced in response to the Alaska Manufactured Housing Association to place into statute licensing and regulation procedures for mobile home dealers. MR. ANDERSON said, "Currently, statutory provisions regulate, and license and bond have a surety provision and offer Alaska Real Estate Commissioner, for realtors, but mobile home dealers have no regulation and are unbonded and unlicensed. So this would place them under a new heading under Occupational Licensing. In addition, the state does not require, it allows but does not require the Division of Motor Vehicles (DMV) to title a mobile home. And this bill would also require and authorize DMV to title mobile homes." MR. ANDERSON said this is in the best interest of the consumer. He indicated there is a zero fiscal note. Mr. Anderson said there are people connected via teleconference to speak on the measure. Number 1116 REPRESENTATIVE ROKEBERG asked if there is a prohibition in the legislation on the fact that a real estate broker couldn't also sell a mobile home. MR. ANDERSON said he didn't believe so. REPRESENTATIVE ROKEBERG asked if this would be a new licensure set up to provide for that. MR. ANDERSON indicated it was. Number 1154 REPRESENTATIVE ELTON said it is another rampant example of Republicans wanting to add more regulations to statutes. Number 1171 CHAIRMAN KOTT referred to page 2, line 8, "(6) a statement that the applicant is a bona fide dealer or agent in mobile home sales with a business at the location given;". He asked if there will be a requirement to update with the department as the representatives in sales change. MR. ANDERSON said, "To be honest, Mr. Chairman, this was drafted from Legal Services and we had them `wing it' and put in what they thought would be good information." Mr. Anderson said in speaking with the director of Occupational Licensing who has stated that Section (b), line 1, page 2, to line 10, probably doesn't have to be in the bill. Mr. Anderson said the committee is welcome to amend the bill in regard to informational purposes as much of this is already on record. He said they would have to notify the department. CHAIRMAN KOTT informed Mr. Anderson that subsection (b) is lines 1 through 16. He said subsection (b)(4) calls for the name and address of sales representatives. Chairman Kott pointed out that are some dealerships where there are a lot of people in sales. He said you can go to Cal Worthington's one week and there are 50 sales representatives and you go down there two weeks later there is almost a 50 percent turnover. He said he was wondering if the intent to update that or if it is not too onerous. MR. ANDERSON said he meant in terms of the occupational licensing application, much of this information is already on the application packet. He said we don't believe that it is necessary to maintain this information. He referred to Chairman Kott's question and said he doesn't think there is a need to continually update that. He said he meant that if the committee members were looking at subsection (b), further subsections (1), (2), (3) and (4), they do not necessarily have to be in the bill. It was included for a reaffirmation of who and what the business was and where the address was. He said he doesn't know how to change that other than to delete it. Number 1347 CHAIRMAN KOTT said on page 4, language was added on line 8, "shall issue a certificate of title to the owner of a mobile home upon application," and then the new language is "display of evidence of ownership." He asked if there was any testimony in the previous committee from the department as to what kinds of evidence would be required. MR. ANDERSON indicated there wasn't testimony in the previous committee. He said he believes they simply meant a certification or a title, an actual piece of paper. He indicated he doesn't know the answer. CHAIRMAN KOTT said as in the case of registering or titling motor vehicles, would the certificate of title also show lienholders. MR. ANDERSON indicated that is the intent. Number 1405 REPRESENTATIVE ELTON referred to page 4, line 8, and said DMV would issue the title. He said they would issue that title, for example, if somebody buys a mobile home outright that would go to the owner, but it could also go to the bank and the bank would be required to pay a fee of $100. MR. ANDERSON said he isn't sure how that procedure works. He said assumes it would be similar to a vehicle. Number 1453 REPRESENTATIVE GENE KUBINA asked what has happened in the state where it has become necessary to regulate another group of people. MR. ANDERSON said in the committee packet, there is a letter from the Alaska Housing Manufacture Association. They would be better to respond with specific situations that have occurred that infringed on their sales. Number 1539 REPRESENTATIVE ELTON referred to page 2, lines 1 through 17 and said the way he reads it the department prescribes and furnishes a form of application and the application then must have this information. He said he believes it would be discretionary on the adoption of regulations which is talked about on the bottom of page 1, whether or not they would have to update that. Representative Elton said he is assuming the license the license application would be the same as for other occupational licensing - once every two years. MR. ANDERSON indicated that is correct. Number 1589 LEONARD GROSS, President, Alaska Manufactured Home Owners Association said he is also a dealer. Mr. Gross referred to HB 436 and said it is a consumer bill. He said it would be a little more costly to him. He said manufactured homes with the former name `mobile homes,' - the least expensive manufactured new homes coming into Anchorage costs about $50,000. This represents probably the largest investment of a home owner who lives in a manufactured home or a mobile home, yet there is no central agency of mandatory registration. Formally they were issued titles, all mobile homes or manufactured homes had to be titled. Now it is arbitrary which is kind of ridiculous to have two sets of registration. What has happened over the last year when the DMV stopped handling titles and wouldn't retitle for a year, from July of 1994 to August of 1995, there were instances of fraud where renters were selling homes with a false bill of sale. Showing their ownership didn't mean a thing. Mr. Gross said there are some manufactured home for $100,000. It is evident that somebody needs protection. As a DMV dealer, where it is mandatory to have a license, they have to be bonded. The present bond is $10,000. He said currently, there isn't no way to have the central regulation to see if the unit is free and clear. Mr. Gross said an increase in the bonding would cost him money, but it would still be for the protection of the consumer. MR. GROSS referred to the titling and said the consumer pays for the title transfer in the (indisc.) application, one way or the other. He said the only thing they can show is a clear title. Most of the banks will not finance a home without a title. He thanked the committee for listening. Number 1706 BEN MARSH, Executive Secretary, Alaska Manufactured Housing Association, testified via teleconference from Anchorage. He explained he operates and manages the association. Mr. Marsh said he hears about anecdotal stories about people who have been handling sales of mobile homes without adequate titling and proof of ownership. He said his association would like to see something to protect the rights of people who buy mobile homes under those conditions - used ones. Obviously, if a mobile home sold with a lean from a bank or a loan from a lender, a problem won't arise because there will be proof of title before a loan is issued. The problem arises when you're conveying used models between individuals and the seller is financing. Number 1772 DAVE CAREY, Vice President Carey Homes; Past President, Alaska Manufactured Housing Association, said he concurs with everything Mr. Gross and Mr. Marsh stated. He referred to Wasilla and said a few years ago, one gentleman sold the same mobile home four or five times because he played on the fact that a bill of sale was the only thing that was necessary. Had there been the requirement of a title to be processed through the DMV, that would have been detained. He said he hopes we can recover from the years that we haven't had titling. He said he concurs with Mr. Gross on the dealerships. Mr. Carey said their homes are built under federal standards, yet there is nobody in Alaska who is actually inspecting those homes to make sure they have the proper seals on them. He said we just want to protect ourselves and our people. CHAIRMAN KOTT noted Representatives Porter and Kubina had joined the meeting. Number 1867 CHAIRMAN KOTT referred to the application requirements that the department will require and asked Mr. Carey if those conditions were satisfactory. MR. CAREY said they use the same forms for mobile homes and have in the past. That form is completely acceptable. CHAIRMAN KOTT asked what the wish of the committee was. Number 1935 REPRESENTATIVE JERRY SANDERS moved and asked unanimous consent that HB 436 be moved out of committee with accompanying fiscal notes and individual recommendations. CHAIRMAN KOTT asked if there was an objection. Hearing none, CSHB 436(TRA) was moved out of the House Labor and Commerce Committee.