03/12/2021 03:15 PM House LABOR & COMMERCE

        HB 36-MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE                                                                     
                                                                                                                                
4:17:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that  the next  order of  business                                                               
would be  HOUSE BILL NO. 36,  "An Act relating to  an application                                                               
for  a license  to operate  as a  dealer in  motor vehicles;  and                                                               
requiring a  dealer in motor  vehicles to maintain  liability and                                                               
property insurance."                                                                                                            
                                                                                                                                
4:18:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY  asked for clarification on  the liability                                                               
maximum of $100,000.                                                                                                            
                                                                                                                                
4:18:21 PM                                                                                                                    
                                                                                                                                
SOPHIE  JONAS, Staff,  Representative Matt  Claman, Alaska  State                                                               
Legislature, on  behalf of  Representative Claman,  prime sponsor                                                               
of HB 36,  responded yes, under the proposed  legislation a motor                                                               
vehicle  dealer would  be required  to maintain  public liability                                                               
and property  damage insurance  in amounts  no less  than $50,000                                                               
for damage  to property, $100,000  for injury including  death to                                                               
any one person,  and $200,000 for injury including  death to more                                                               
than one person.                                                                                                                
                                                                                                                                
REPRESENTATIVE MCCARTY asked if Ms.  Jonas knew how much a dealer                                                               
would pay in liability insurance at the $100,000 level.                                                                         
                                                                                                                                
MS. JONAS deferred the question to the testifiers online.                                                                       
                                                                                                                                
4:19:36 PM                                                                                                                    
                                                                                                                                
STEVE   ALLWINE,  Board   of  Directors,   Alaska  Auto   Dealers                                                               
Association,  responded that  under the  current policy,  dealers                                                               
pay $1,000,  and if  this bill  were to  pass, that  number would                                                               
change to $1,700-$1,900.   He shared his  understanding that this                                                               
is not a significantly higher investment,  but it is enough of an                                                               
investment  to  make  individuals   applying  for  licenses  more                                                               
invested in the license.                                                                                                        
                                                                                                                                
4:20:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NELSON  commented that he had  been concerned that                                                               
the bill would create too high  of a cost barrier for an induvial                                                               
to be able to open a small  used car business, but shared that he                                                               
is relieved  to hear  from Mr.  Allwine that  the cost  would not                                                               
increase significantly.                                                                                                         
                                                                                                                                
MR.  ALLWINE  gave  additional  clarification  the  bill  is  not                                                               
intended  to  make it  difficult  for  individuals to  enter  the                                                               
industry,  but simply  to ensure  that  individuals entering  the                                                               
industry are responsible.                                                                                                       
                                                                                                                                
4:22:07 PM                                                                                                                    
                                                                                                                                
MARCUS WAEHLER,  Member, Alaska Auto Dealers  Association, shared                                                               
that the current price of  becoming registered to become a dealer                                                               
is about $550 for the $50,000 level.                                                                                            
                                                                                                                                
CO-CHAIR SPOHNHOLZ  added that  this number was  the result  of a                                                               
carefully  crafted compromise  that was  negotiated amongst  auto                                                               
dealers, small and large.                                                                                                       
                                                                                                                                
4:23:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ opened  public  testimony on  HB  36.   After                                                               
ascertaining that  there was  no one who  wished to  testify, she                                                               
closed public testimony.                                                                                                        
                                                                                                                                
[HB 36 was set aside and taken  up again later for the purpose of                                                               
a motion.]                                                                                                                      
                                                                                                                                
        HB 36-MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE                                                                     
                                                                                                                                
4:41:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that  the next  order of  business                                                               
would be a  return to HOUSE BILL  NO. 36, "An Act  relating to an                                                               
application  for  a license  to  operate  as  a dealer  in  motor                                                               
vehicles; and  requiring a dealer  in motor vehicles  to maintain                                                               
liability and property insurance."                                                                                              
                                                                                                                                
4:42:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHRAGE  moved to  report HB  36 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.  There  being no objection, HB 36 was  reported out of the                                                               
House Labor and Commerce Standing Committee.