Legislature(1995 - 1996)
03/27/1996 01:29 PM TRA
* first hearing in first committee of referral
= bill was previously heard/scheduled
= 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.