Legislature(1993 - 1994)

03/10/1993 02:07 PM Senate JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                   SENATE JUDICIARY COMMITTEE                                  
                         March 10, 1993                                        
                            2:07 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Senator Robin Taylor, Chairman                                               
  Senator Rick Halford, Vice-Chairman                                          
  Senator George Jacko                                                         
  Senator Dave Donley                                                          
  Senator Suzanne Little                                                       
                                                                               
  OTHERS PRESENT                                                               
                                                                               
  Senator Fred Zharoff                                                         
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  SENATE JOINT RESOLUTION NO. 9                                                
  Relating to an amendment to  the Constitution of the  United                 
  States prohibiting  desecration of  the Flag  of the  United                 
  States.                                                                      
                                                                               
  SENATE BILL NO. 105                                                          
  "An Act relating to motor vehicle  dealers and to agents for                 
  motor vehicle buyers; and providing for an effective date."                  
                                                                               
  HOUSE BILL NO. 90                                                            
  "An Act making corrective amendments  to the Alaska Statutes                 
  as recommended by the revisor of statutes; and providing for                 
  an effective date."                                                          
                                                                               
  HOUSE JOINT RESOLUTION NO. 21                                                
  Honoring Thurgood Marshall, 1908 - 1993.                                     
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
  SJR 9 -  See Judiciary minutes dated 2/22/93.                                
                                                                               
  SB 105 - See Labor and Commerce minutes dated 2/25/93.                       
                                                                               
  HB 90 -  NONE.                                                               
                                                                               
  HJR 21 - NONE.                                                               
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Col. James Carlton, Ret.                                                     
  American Legion                                                              
  Veterans of Foreign Wars                                                     
  1043 Woodland                                                                
  Ketchikan, Alaska 99901                                                      
    POSITION STATEMENT: Supported SJR 9.                                       
                                                                               
                                                                               
  Mst. Sgt. Rodney Love, Ret.,                                                 
  Commander, American Legion                                                   
  Veterans of Foreign Wars                                                     
  887 Monroe Street                                                            
  Ketchikan, Alaska 99901                                                      
    POSITION STATEMENT: Supported SJR 9.                                       
                                                                               
  Colonel Earl Mickelsen, Ret.                                                 
  American Legion                                                              
  P.O. Box 4409                                                                
  Kodiak, Alaska 99615                                                         
    POSITION STATEMENT: Supported SJR 9.                                       
                                                                               
  Joseph Craig                                                                 
  American Legion                                                              
  2323 First Avenue                                                            
  Ketchikan, Alaska 99901                                                      
    POSITION STATEMENT: Supported SJR 9.                                       
                                                                               
  Jeffery Blume                                                                
  Coast Guard Petty Officer, Ret.                                              
  Secretary, Harley Riders                                                     
  Box 7213                                                                     
  Ketchikan, Alaska 99901                                                      
    POSITION STATEMENT: Supported SJR 9.                                       
                                                                               
  Tom Streeper                                                                 
  Air Force Officer, Ret.                                                      
  Box 7213                                                                     
  Ketchikan, Alaska 99901                                                      
    POSITION STATEMENT: Supported SJR 9.                                       
                                                                               
  Joe Ambrose, Aide                                                            
  Senator Robin Taylor                                                         
  State Capitol                                                                
  Juneau, AK 99801-1182                                                        
    POSITION STATEMENT: Testified on SB 105.                                   
                                                                               
  Joe Hayes                                                                    
  Alaska Auto Dealers                                                          
  P.O. Box 101821                                                              
  Anchorage, Alaska 99510                                                      
    POSITION STATEMENT: Supports SB 105.                                       
                                                                               
  David Dierdorff, Attorney                                                    
  Revisor of Statutes                                                          
  Legislative Legal Counsel                                                    
  Legislative Affairs Agency                                                   
  130 Seward Street #414                                                       
  Juneau, Alaska 99801                                                         
    POSITION STATEMENT: Testified on HB 90.                                    
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
                                                                               
  TAPE 93-24, SIDE A                                                           
  Number 001                                                                   
                                                                               
  Chairman Robin Taylor called the Judiciary Committee meeting                 
  to order at 2:07 p.m.                                                        
                                                                               
  SENATOR  TAYLOR returned SJR 9 (DESECRATION OF U.S. FLAG) to                 
  committee and began taking  testimony on teleconference from                 
  Kodiak  and  beginning with  Ketchikan,  where he  called on                 
  JAMES CARLTON.                                                               
                                                                               
  He checked in as COLONEL J. CARLTON, Retired U.S. Air Force,                 
  reviewed his record, and  indicated he was a member  of both                 
  the American Legion  and the Veterans  of Foreign Wars.   In                 
  remembrance of the last medal of honor winner in his outfit,                 
  CAPTAIN  STEPHEN  L.  BENNETT,     COL.  CARLTON  asked  the                 
  committee to  pass  the  resolution now.    He  claimed  the                 
  majority of Alaskan supported the resolution, which has been                 
  passed in 28 states.                                                         
                                                                               
  SENATOR  TAYLOR  noted  the  prime  sponsor,   SENATOR  FRED                 
  ZHAROFF, had arrived and invited him to testify.                             
                                                                               
  Number 064                                                                   
                                                                               
  SENATOR ZHAROFF  gave thanks  for the  opportunity to  again                 
  support SJR 9, and he explained how it was lost in the final                 
  hours  of  session last  year.   He  explained how  his bill                 
  related to  the attempt to amend the  U.S. Constitution, and                 
  he  hoped  the  resolution  could   be  pushed  through  the                 
  Legislature quickly.                                                         
                                                                               
  SENATOR TAYLOR thanked SENATOR ZHAROFF for his participation                 
  and  turned  the  testimony  to  Ketchikan  to  hear  MASTER                 
  SERGEANT RODNEY LOVE, RET.                                                   
                                                                               
  SERGEANT LOVE read  a statement from  one of the members  of                 
  the American Legion in a  tribute to the American Flag as  a                 
  reminder  of  the  armed services  fighting  for  the United                 
  State, and he urged  the legislature to follow the  other 28                 
  states in support of a Constitutional  amendment on the flag                 
  desecration.  He conclude with a  poem written a by student,                 
  LEE ESTES, from  Jackson, Louisiana,  in honor of  Veteran's                 
  Day.                                                                         
                                                                               
  SENATOR  TAYLOR  returned  to Kodiak  to  hear  COLONEL EARL                 
  MICKELSEN, RET.                                                              
                                                                               
  Number 153                                                                   
                                                                               
  COL. MICKELSEN expressed appreciation to SENATOR ZHAROFF for                 
  the introduction of  SJR 9.  He noted a House Resolution and                 
                                                                               
                                                                               
  asked that the  two be combined.   He described the  support                 
  for  the  resolution from  the  Kodiak American  Legion, the                 
  Western District, and the  Southeastern District, which have                 
  all gone on record with resolutions asking for quick passage                 
  of the legislation.  He asked that the resolution be passed,                 
  not  only for  our  flag, but  our veterans  -  and for  our                 
  nation.                                                                      
                                                                               
  SENATOR TAYLOR returned  to Ketchikan  for the remainder  of                 
  the testimony, beginning with JOSEPH CRAIG.                                  
                                                                               
  MR.  CRAIG referred to  a discussion with  SENATOR TAYLOR on                 
  the  issue  and  stressed  the   American  Legion  would  be                 
  supporting the resolution next year if it doesn't pass.                      
                                                                               
  Number 223                                                                   
                                                                               
  JEFFERY BLUME identified  himself as  a Retired Vietnam  Era                 
  Coast Guard Petty Officer, current member of the Legion Post                 
  Association.  He discussed the flag as a national symbol and                 
  recognized  daily   at  sporting  events,  schools,  and  at                 
  motorcycle rallies.   He urged Alaska  to join the 28  other                 
  states in supporting the Constitutional amendment.                           
                                                                               
  TOM  STREEPER  identified  himself as  a  Retired  Air Force                 
  Officer and a veteran of World War II, as well as the Korean                 
  War.  He  concurred with the previous speakers and explained                 
  the support for  the resolution went beyond  the military to                 
  all walks of life.                                                           
                                                                               
  SENATOR JACKO moved to pass SJR 9 (DESECRATION OF U.S. FLAG)                 
  from  committee with  individual  recommendations.   Without                 
  objections, so ordered.                                                      
                                                                               
  SENATOR TAYLOR introduced  SB 105  (MOTOR VEHICLE DEALERS  &                 
  BUYERS' AGENTS) as the prime  sponsor, and he described  the                 
  circumstances which led to his introduction of the bill.                     
                                                                               
  Number 272                                                                   
                                                                               
  SENATOR TAYLOR said the bill was introduced to  prevent some                 
  fly-by-night  car  dealers,  who act  as  brokers,  take the                 
  money,  and may  or may  not buy  a car  for a  person.   In                 
  Southeast, a  broker took  a lot  of money,  but never  sent                 
  titles  to some cars,  and in some  cases, sent no  car.  He                 
  described  the  mess  in  dealing  with  missing  money  and                 
  repossessed cars.                                                            
                                                                               
  SENATOR LITTLE asked for  more information on what  the bill                 
  would do, and SENATOR TAYLOR said  he would defer to someone                 
  more knowledgeable.                                                          
                                                                               
                                                                               
  SENATOR  JACKO asked  if  the bill  was  applicable to  snow                 
  machines, outboards, or all-terrain vehicles.                                
                                                                               
  SENATOR TAYLOR asked his aide, JOE AMBROSE to comment on the                 
  bill and address SENATOR JACKO'S question.                                   
                                                                               
  MR. AMBROSE thought it  would depend on the definition  of a                 
  motor  vehicle,  but  indicated it  might  need  a different                 
  title.                                                                       
                                                                               
  SENATOR  LITTLE  asked  MR.  AMBROSE  to describe  what  the                 
  legislation does.  He explained  the bill basically tightens                 
  up the definition of an "automobile dealer," and then adds a                 
  new provision identifying "a buyer's agent."  He explained a                 
  buyer's agent as a  person who does business in the state by                 
  negotiating on behalf of a buyer to purchase a motor vehicle                 
  from  a motor vehicle  dealer.   He said  the intent  was to                 
  differentiate between  a legitimate automobile dealer  and a                 
  person who buys a  car for another person, which  them makes                 
  it a second owned vehicle with warrantee problems.  He had a                 
  couple of other concerns dealing with a warrantee and rental                 
  cars, and he gave an example of a broker who collected money                 
  and disappeared.                                                             
                                                                               
  Number 345                                                                   
                                                                               
  SENATOR LITTLE asked if these were stolen cars.  MR. AMBROSE                 
  outlined a different  situation not covered in  the law, and                 
  he said the bill listed some specifics that must be  done by                 
  a buyer's agent for consumer protection.                                     
                                                                               
  SENATOR LITTLE questions sparked  a discussion of penalties,                 
  holding funds in trust in a buyer's account, delivery of the                 
  vehicles, transfer of title, purchasing agents, and purchase                 
  agreements.                                                                  
                                                                               
  SENATOR JACKO asked if the purchase agent must be registered                 
  somewhere that can be checked.  MR. AMBROSE thought they had                 
  to be licensed.  SENATOR JACKO  described a situation in his                 
  district  during  PFD time,  when  a bogus  purchasing agent                 
  collected about $45 thousand in  dividend checks to buy snow                 
  machines and four-wheelers - but never delivered them.                       
                                                                               
  SENATOR TAYLOR wanted  to hold the bill for  amendments that                 
  would  prevent  a re-occurrence  of  the problem  in SENATOR                 
  JACKO'S district.                                                            
                                                                               
  Number 408                                                                   
                                                                               
  SENATOR TAYLOR explained  the problem  he saw in  fraudulent                 
  ads promising a good  deal by brokers, who purchase  the car                 
  and  a  warrantee  problem.    He  wanted  to  prevent  such                 
  transactions.  He and SENATOR JACKO discussed the fraudulent                 
                                                                               
                                                                               
  deals in their districts.                                                    
                                                                               
  SENATOR TAYLOR entertained a motion  to adopt CS FOR  SENATE                 
  BILL NO.  105 (JUD), BANNISTER, 3/2/93 and  SENATOR JACKO so                 
  moved.  Without objections, so ordered.                                      
                                                                               
  MR. AMBROSE outlined  the changes  between the original  and                 
  the committee substitute.   On page 1, line 5,  he explained                 
  language  which was added  to protect both  the consumer and                 
  the dealer,  and  on  page 3,  line  5,  specific  warrantee                 
  restrictions.  He directed the committee  to page 3, line 15                 
  to discuss provisions for the money in  the transaction, and                 
  they discussed the problems involved.                                        
                                                                               
  SENATOR JACKO asked if the agent was going to be required to                 
  be bonded, and MR. AMBROSE referred  the question to someone                 
  who could explain bonding requirements.                                      
                                                                               
  JOE HAYES, representing the Alaska Auto Dealers Association,                 
  testified in support of the bill.                                            
                                                                               
  SENATOR TAYLOR made known  his intent to return the  bill on                 
  Friday,  to  allow  time  to  accommodate   SENATOR  JACKO'S                 
  inclusion  of other  vehicles  and  additional questions  by                 
  SENATOR LITTLE.                                                              
                                                                               
  Number 475                                                                   
                                                                               
  MR. AMBROSE said he knew there was a bonding requirement and                 
  would look for it.                                                           
                                                                               
  SENATOR TAYLOR introduced  HB 90  (1993 REVISOR'S BILL)  and                 
  asked the revisor, DAVID DIERDORFF, to explain the changes.                  
                                                                               
  MR.DIERDORFF explained it was the shortest revisor's bill in                 
  the history of the state by the longest tenured revisor.  He                 
  mentioned  he  had previously  sent  two amendments  for the                 
  bill,  A1, which adds  new sections 8,  9, 17,  18, and some                 
  language to the repealer.                                                    
                                                                               
  MR. DIERDORFF  explained A1 removed some obsolete references                 
  in the statute  to old coordinating councils  required under                 
  federal law  years  ago in  dealing  with some  health  care                 
  issues.  The federal  law has been changed and  the councils                 
  are  no  longer  in effect.    He  said  the Departments  of                 
  Revenue, Health and Social Services, and Law  have looked at                 
  the changes and all signed off on the changes.                               
                                                                               
  MR. DIERDORFF noted the another amendment, A2, rewrites part                 
  of the Insurance Code  which didn't make sense  and violated                 
  some of the basic rules about statute drafting.  He reasoned                 
  the Insurance Code  was a monster bill written  by insurance                 
                                                                               
                                                                               
  lawyers, but doesn't  make any substantive change.   Omitted                 
  in the new Section 13 was  the word "weighting factors," and                 
  he referenced Section 12 for  identical wording.  There  was                 
  some general discussion of the  changes with explanations by                 
  MR. DIERDORFF.   SENATOR  TAYLOR also  explained to  SENATOR                 
  LITTLE that any substantive changes had  to be in a separate                 
  bill.                                                                        
                                                                               
  Number 550                                                                   
                                                                               
  SENATOR  LITTLE  noted a  change on  page  2, line  24 which                 
  referred  to Anchor Point  in her  district.   MR. DIERDORFF                 
  explained it marked the  entrance to Kachemak Bay on  the SW                 
  coast  of the  Kenai  Peninsula, and  the  reference was  to                 
  correct an error in the survey.                                              
                                                                               
  SENATOR  LITTLE  moved  to  adopt  Amendment  #1.    Without                 
  objections, so ordered.                                                      
                                                                               
  SENATOR  LITTLE  moved  to adopt  Amendment  #2  as amended.                 
  Without objections, so ordered.                                              
                                                                               
  MR. DIERDORFF reviewed the sectional analysis ...                            
                                                                               
  TAPE 93-24, SIDE B                                                           
  Number 001                                                                   
                                                                               
  as removing obsolete material, fixing  errors or oversights,                 
  and adding  language in Section  12 dealing with  the ethics                 
  committee.                                                                   
                                                                               
  SENATOR JACKO moved  to pass  SENATE CS FOR  HOUSE BILL  NO.                 
  90(JUD) (1993 REVISOR'S BILL) from committee with individual                 
  recommendations.  Without objections, so ordered.                            
                                                                               
  SENATOR  TAYLOR  returned SB  105  (MOTOR VEHICLE  DEALERS &                 
  BUYERS' AGENTS) to  committee after having research  done to                 
  answer  concerns  from  SENATOR  JACKO  as to  whether  snow                 
  machines and all-terrain vehicles were covered.                              
                                                                               
  SENATOR LITTLE clarified  that these vehicles were  covered,                 
  too.    SENATOR  TAYLOR  reviewed  the definition  of  motor                 
  vehicles                                                                     
  and explained to  SENATOR DONLEY his reasons  for sponsoring                 
  the bill.                                                                    
                                                                               
  SENATOR JACKO asked if the  agents were bonded, and  SENATOR                 
  LITTLE  declared  the  dealers  should  be both  bonded  and                 
  licensed.    SENATOR  TAYLOR  thought  this was  already  in                 
  statute.                                                                     
                                                                               
  SENATOR  JACKO moved  to  pass SENATE  BILL  NO. 105  (MOTOR                 
  VEHICLE  DEALERS  &  BUYERS'  AGENTS)  from  committee  with                 
                                                                               
                                                                               
  individual recommendations.  Without objections, so ordered.                 
                                                                               
  SENATOR TAYLOR introduced CS FOR  HOUSE JOINT RESOLUTION NO.                 
  21(JUD)  (IN  MEMORIAM THURGOOD  MARSHALL)  and praised  the                 
  information on the resolution.                                               
                                                                               
  SENATOR   LITTLE  moved  to   approve  the  resolution  with                 
  individual recommendations.  Without objections, so ordered.                 
                                                                               
  There  being  no   further  business  to  come   before  the                 
  committee, the meeting was adjourned at 3:15 p.m.                            
                                                                               
                                                                               

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