Legislature(1995 - 1996)

04/03/1996 03:28 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 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.             
                                                                               

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