04/17/2002 05:30 PM House RLS

SB 176-DISTRIBUTORSHIPS                                                                                                       
                                                                                                                                
CHAIR KOTT announced  that the last order of  business before the                                                               
committee would  be CS FOR SENATE  BILL NO. 176(L&C) am,  "An Act                                                               
prohibiting certain  coercive activity by  distributors; relating                                                               
to   certain  required   distributor   payments  and   purchases;                                                               
prohibiting  distributors from  requiring certain  contract terms                                                               
as a  condition for certain  acts related to  distributorship and                                                               
ancillary  agreements; allowing  dealers to  bring certain  court                                                               
actions against  distributors for  certain relief;  and exempting                                                               
from  the  provisions of  the  Act  franchises regulated  by  the                                                               
federal Petroleum  Marketing Practices Act,  situations regulated                                                               
by the Alaska gasoline products  leasing act, and distributorship                                                               
agreements relating  to motor vehicles required  to be registered                                                               
under AS 28.10."                                                                                                                
                                                                                                                                
Number 0328                                                                                                                     
                                                                                                                                
REPRESENTATIVE McGUIRE moved  to adopt HCS CSSB  176 Version [22-                                                               
LS0818\B,  Bannister, 4/17/02]  as the  working document.   There                                                               
being no objection, it was so ordered.                                                                                          
                                                                                                                                
CHAIR KOTT  noted the presence  of Senator Randy  Phillips, Chair                                                               
of the Senate Labor and  Commerce Standing Committee, the sponsor                                                               
of SB 176.  Chair Kott  welcomed Senator Phillips and invited him                                                               
to  the table,  but  Senator Phillips  yielded to  Representative                                                               
Rokeberg.                                                                                                                       
                                                                                                                                
REPRESENTATIVE   NORMAN  ROKEBERG,   Alaska  State   Legislature,                                                               
explained  that the  changes  in  Version B  are  related to  the                                                               
exemptions in the title  on [page 1,] lines 5 and  8.  He further                                                               
explained  the title  change.   Representative Rokeberg  directed                                                               
attention to  page 5 paragraph  (4), which he characterized  as a                                                               
redraft  of  moving the  scope  of  license activities  of  those                                                               
individuals licensed under  Title 4.  Page 6  adds [new language]                                                               
in paragraphs (5)-(7) and (8)(b).                                                                                               
                                                                                                                                
Number 0501                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ  asked if there is  a pending resolution                                                               
due to the title change.                                                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG  noted his anticipation of  a few motions                                                               
on this bill on the House floor.                                                                                                
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  expressed  his doubt  that  the  House                                                               
could do a title change to a Senate Bill.                                                                                       
                                                                                                                                
REPRESENTATIVE  ROKEBERG  pointed  out  that the  sponsor  is  in                                                               
concurrence.                                                                                                                    
                                                                                                                                
REPRESENTATIVE   BERKOWITZ   related   his   belief   that   [the                                                               
resolution] could be objectionable.                                                                                             
                                                                                                                                
CHAIR  KOTT announced  that there  is a  resolution in  the House                                                               
Rules Standing Committee  because there was a title  change to SB
 prior to  this committee change.   Therefore, that resolution                                                               
will have to go  to the House floor as well.   Chair Kott further                                                               
pointed out that  a number of technical motions  will be required                                                               
for this bill.                                                                                                                  
                                                                                                                                
Number 0610                                                                                                                     
                                                                                                                                
JOHN HAXBY  characterized SB 176  as a small  business protection                                                               
act that  is necessary to  level the playing field  between large                                                               
well   financed   manufacturers   and  distributors   and   small                                                               
businesses  in Alaska.    The passage  of  this legislation  will                                                               
protect   small   businesses    in   Alaska   from   unreasonable                                                               
manipulation  by manufacturers  and  distributors.   Furthermore,                                                               
the legislation  should foster  economic growth  and development,                                                               
keeping capital in Alaska.  He  pointed out that Alaska is one of                                                               
the few  states without a law  addressing distributor agreements.                                                               
Mr. Haxby noted that he has  reviewed the proposed changes in the                                                               
CS, which he viewed as reasonable.                                                                                              
                                                                                                                                
Number 0771                                                                                                                     
                                                                                                                                
TERRY  BANNISTER,   Attorney,  Legislative  Counsel,   Legal  and                                                               
Research   Services   Division,   Legislative   Affairs   Agency,                                                               
answered, in  response to  Chair Kott, that  she didn't  know the                                                               
impact  of   this  legislation  on  existing   franchises.    The                                                               
legislation   attempts   to   avoid  conflict   with   [existing]                                                               
franchises.  She offered to look into that matter.                                                                              
                                                                                                                                
CHAIR KOTT closed public testimony.                                                                                             
                                                                                                                                
Number 0836                                                                                                                     
                                                                                                                                
REPRESENTATIVE   BERKOWITZ   moved   the   following   amendment,                                                               
Amendment 1,  which addresses page  3, Sec.  45.45.730, regarding                                                               
death of the dealer or holder of majority interest in dealer.                                                                   
                                                                                                                                
CHAIR KOTT objected.                                                                                                            
                                                                                                                                
REPRESENTATIVE BERKOWITZ  pointed out  that death isn't  the only                                                               
thing  that  can  incapacitate an  individual  in  a  contractual                                                               
relationship.   Therefore, the language "death  or disability and                                                               
other successors  and interests" was inserted  in the appropriate                                                               
spots in  this paragraph.   He noted  that he had  consulted with                                                               
Ms. Bannister on this amendment.                                                                                                
                                                                                                                                
REPRESENTATIVE McGUIRE surmised that  [Amendment 1] refers to the                                                               
(indisc.) that tends to incapacitate.                                                                                           
                                                                                                                                
REPRESENTATIVE BERKOWITZ replied yes.                                                                                           
                                                                                                                                
CHAIR KOTT withdrew his objection.                                                                                              
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
Number 0929                                                                                                                     
                                                                                                                                
REPRESENTATIVE McGUIRE  moved to report  HCS CSSB 176  as amended                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying fiscal  notes.  There  being no objection,  HCS CSSB
(RLS) was reported from the House Rules Standing Committee.