Legislature(1993 - 1994)
03/10/1993 02:07 PM Senate JUD
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+ teleconferenced
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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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