Legislature(1995 - 1996)

03/27/1996 01:29 PM TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
 HB 436 - MOBILE HOME DEALERS & TITLES                                       
 Number 0369                                                                   
 CHAIRMAN GARY DAVIS announced the next item on the agenda was HB
 436, an act relating to the purchase and sale of mobile homes by              
 mobile home dealers or agents; to mobile home titles; and providing           
 for an effective date.                                                        
 TOM ANDERSON, Legislative Aide to Representative Martin, said HB
 436 was in response to the Alaska Manufactured Housing Association,           
 who represent mobile home dealers and park owners throughout                  
 Alaska.  He said the association has a problem with the current               
 lack of statutory regulation for mobile home dealers.  The current            
 bill, HB 436 tries to regulate dealers and agents.  He said the               
 committee substitute for HB 436 will eliminate the regulation of              
 agents section of HB 436.                                                     
 MR. ANDERSON said, in essence, mobile home dealers are not                    
 currently regulated, licensed or bonded in the legal services view.           
 This bill establishes, under Occupational Licensing, a bonding                
 procedure up to $100,000 as well as regulatory provisions.  He said           
 it allows the Division of Motor Vehicles to title mobile homes so             
 that whether someone is selling or buying there is no confusion.              
 He read from the sponsor statement, "the problem exists often with            
 banks, and other lending institutions regarding certification of              
 title and often seller-financed sales and cash sales offer no                 
 protection to the buyer or seller."  He said HB 436 is more of a              
 consumer protective bill in the bonding, oversight and purview of             
 occupational licensing, but the authorized titling will also clean            
 up some gaps in the statutes.                                                 
 Number 0510                                                                   
 CHAIRMAN GARY DAVIS asked in discussions with the Department of               
 Motor Vehicles (DMV) and Occupational Licensing if there had been             
 any problems with HB 436.                                                     
 Number 0525                                                                   
 MR. ANDERSON referred to the committee substitute for HB 436 which            
 was drafted in response to Occupational Licensing's recommendations           
 and involve minor housekeeping elements.  He said in addition to              
 these provisions CSHB 436 eliminates the provision which would                
 license agents.                                                               
 Number 0553                                                                   
 REPRESENTATIVE BRICE said the sponsor of HB 436 made comments to              
 the over regulation in certain commercial aspects and remarked that           
 it was interesting that he was sponsoring this type of legislation.           
 Number 0620                                                                   
 CATHERINE REARDON, Director, Central Office, Division of                      
 Occupational Licensing, Department of Commerce and Economic                   
 Development, was next to testify.  She requested the effective date           
 of HB 436, located on page four, line 11, currently listed as July            
 1, 1996, be changed to January 1, 1997.  She said when there is a             
 new licensing program it is hard to get it up and running within a            
 month and the Division does not want to enforce a law that has not            
 given people ample chance with which to comply.                               
 Number 0684                                                                   
 CHAIRMAN GARY DAVIS referred to the fiscal note and said there                
 appeared to be a cost of $48,400 and revenues of $24,200.                     
 Number 0698                                                                   
 MS. REARDON said that is not what the fiscal note is attempting to            
 reflect.  She said licenses are issued for two year periods, so all           
 of the revenue comes in for one fiscal year and then the next                 
 fiscal year no revenue is received.  She said the $48,400 is for              
 fiscal year 1997 and in fiscal year 1998 you get zero which                   
 represents that cyclical pattern.                                             
 Number 0733                                                                   
 CHAIRMAN GARY DAVIS clarified that the fiscal note was revenue                
 neutral in relation to the fees.                                              
 Number 0761                                                                   
 MR. ANDERSON said the sponsor had no problem with the change of the           
 effective date in HB 436.                                                     
 Number 0772                                                                   
 REPRESENTATIVE BRICE made a motion to adopt CSHB 436 ( ), version             
 9-LS1376\C, dated March 19, 1996.  Hearing no objections CSHB 436             
 was before the House Standing Committee on Transportation.                    
 Number 0803                                                                   
 REPRESENTATIVE BRICE made a motion to adopt Amendment 1, changing             
 the effective date from "July 1, 1996" to "January 1, 1997".                  
 Hearing no objection Amendment 1 was adopted to CSHB 436 by the               
 House Standing Committee on Transportation.                                   
 Number 0834                                                                   
 REPRESENTATIVE MASEK referred to page one, line 11, regarding the             
 registration fee requirement.  She asked what type of registration            
 fee was being suggested.                                                      
 Number 0861                                                                   
 MS. REARDON said the Division of Occupational Licensing is funded             
 entirely off of licensing fees.  She said, by statute, the Division           
 is required to charge fees that cover the costs of regulating each            
 program within the Division.  She said the doctors pay for medical            
 licensing, the nurses pay for nurse licensing, and in this case the           
 mobile home dealers would be paying for the regulatory costs of               
 mobile home licensing.  She said the Division sets those fees by              
 regulation and they are adjusted up and down every two years before           
 renewals.  She said if the Division over collects, the fees are               
 lowered, if they under collect then the fees are raised.  She said            
 it is difficult to know exactly how much the Division will have to            
 charge for this program because an estimate is made as to how many            
 people will need to be licensed, how many people will be paying in            
 fees and how much activity this program will generate.  She said              
 when a new licensing program is proposed, it is an educated guess.            
 Number 0932                                                                   
 MS. REARDON said the fiscal note predicts that as many as 124                 
 individuals may seek registration under CSHB 436.  Therefore the              
 Division tried to predict how much the fees would need to be to               
 cover the fiscal note and the costs.  If the Division is correct              
 about that number, and if the Division is correct about the costs             
 it generates, then the fee would be $494 every two years.                     
 Number 0966                                                                   
 REPRESENTATIVE MASEK asked how much is being currently charged.               
 MS. REARDON said that currently the Division does not license                 
 mobile home dealers.                                                          
 Number 0978                                                                   
 REPRESENTATIVE BILL WILLIAMS made a motion to move CSHB 436 (TRA)             
 with accompanying fiscal notes and individual recommendations.                
 Hearing no objections CSHB 436 (TRA) was moved from the House                 
 Standing Committee on Transportation.                                         

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