Legislature(2021 - 2022)BELTZ 105 (TSBldg)
05/17/2021 02:00 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB125 | |
| HB36 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 125 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 36 | TELECONFERENCED | |
HB 36-MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE
2:33:08 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of 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."
She noted that this was the second hearing and there was an
amendment for the committee to consider. She asked Ms.
Wilterdink to summarize the bill and explain the amendment.
2:33:45 PM
MELODIE WILTERDINK, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, explained that the bill creates
stricter insurance requirements for licensed motor vehicle
dealers and increases their bonding requirement. According to
the sponsor, this better aligns Alaska with the insurance
requirements in other states. Alaskans will be covered when they
test drive a car and the bonding requirement will provide
recourse for buyers who purchase used cars that were
fraudulently represented.
SENATOR MICCICHE joined the committee.
2:34:44 PM
CHAIR COSTELLO moved Amendment [1], work order 32-LS0271\B.2.
32-LS0271\B.2
Fisher
5/14/21
AMENDMENT [1]
OFFERED IN THE SENATE BY SENATOR COSTELLO
TO: SCS HB 36(TRA)
Page 1, line 1, following "vehicles;":
Insert "relating to the duties of a motor vehicle
dealer;"
Page 2, following line 17:
Insert a new bill section to read:
"* Sec. 2. AS 08.66.040 is amended to read:
Sec. 08.66.040. Filing application for
registration; identification of dealer. The
application shall be filed with the department. Upon
receipt of the application, the department shall
examine it and may make an investigation of the
information in it. If the department is satisfied that
the dealer is entitled to registration, and the fees
have been paid and a bond filed, the department shall
assign a distinctive registration number to the dealer
and file the dealer's application and index it
alphabetically and numerically. A dealer is registered
when the department assigns a registration number. A
dealer shall inform each person who purchases a
vehicle from the dealer that the dealer is registered
under this chapter and provide the dealer's
registration number."
Renumber the following bill sections accordingly.
2:34:54 PM
SENATOR STEVENS objected for discussion purposes.
2:35:03 PM
MS. WILTERDINK explained that the proposed amendment seeks to
resolve the issue of registered vehicle dealers who go to closed
auctions, which are only open to registered dealers, and they
buy cars that are meant to be used for parts and sell them on
sites like Craigslist, posing as an individual not a dealer. The
buyers are unsuspecting and only later find out these cars are
not meant to be on the road. Amendment [1] requires a dealer to
identify to identify himself as a dealer whenever they sell a
car. The buyer would know they purchased a vehicle from a dealer
and that they have the avenues of recourse that HB 36 provides.
2:36:21 PM
SENATOR STEVENS asked what stakeholders she had talked to.
MS. WILTERDINK answered that she spoke to large and small motor
vehicle dealers and some victims, most of whom are young and
have just made the largest purchase in their life.
2:37:06 PM
SENATOR STEVENS removed his objection.
CHAIR COSTELLO found no further objection and Amendment [1]
passed.
She asked the bill sponsor's staff for the sponsor's position on
the amendment.
2:37:46 PM
SOPHIE JONAS, Staff, Representative Matt Claman, Alaska State
Legislature, Juneau, Alaska, stated that the sponsor supports
Amendment 1.
CHAIR COSTELLO offered her belief that the amendment strengthens
the consumer protection portion of the bill as well as the
intent of the legislation.
2:38:19 PM
SENATOR STEVENS offered his understanding that dealers currently
are not required to identify themselves as a dealer when they
sell a used car. HB 36 requires the dealer to inform the
purchaser and guarantee the vehicle.
MS JONAS answered yes and deferred further comment to the dealer
who was available online to speak to the bill.
2:39:11 PM
SENATOR MICCICHE asked the record to reflect that he heard the
explanation of the amendment and he supports it. He asked how
the bill proposes to differentiate between an individual who
frequently buys and sells their personal vehicles and a dealer
who buys vehicles at auction and poses as an individual when
they sell the vehicle to an unsuspecting consumer.
MS. JONAS answered that the existing statute has an annual five-
vehicle threshold above which an individual is required to
obtain a motor vehicle dealer license. However, her
understanding is that the requirement is not enforced.
2:40:44 PM
SENATOR STEVENS asked to hear from a dealer.
CHAIR COSTELLO recognized that Martin Martensen with the Alaska
Auto Dealers Association was available to provide comment and
answer questions.
2:41:04 PM
MARTEN MARTENSEN, owner, Continental Auto Group; board member,
Alaska Auto Dealers Association, Anchorage, Alaska, stated
support for the amendment the chair brought forward to require
dealers to disclose that they are a dealer and that consumers
have recourse. He highlighted that the bill also requires [the
application for dealer registration] to include a phone number
for the business so the consumer has recourse if the vehicle was
misrepresented.
SENATOR STEVENS asked if this is a large concern for legitimate
dealers.
MR. MARTENSEN answered yes; it has become a big issue in
Anchorage and throughout Southcentral. He noted that dealer
fraud on vehicles was one of the most frequent complaints to the
Consumer Protection Unit when former Attorney General Ed Sniffen
was head of the unit.
CHAIR COSTELLO, finding no further questions, solicited a
motion.
2:43:04 PM
SENATOR REVAK moved to report SCS HB 36, work order 32-LS0271\B
as amended, from committee with individual recommendations and
attached fiscal note(s).
CHAIR COSTELLO stated that without objection, SCS HB 36(L&C)
passed from the Senate Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 125 Sectional Analysis Version B 4.23.21.pdf |
SL&C 5/17/2021 2:00:00 PM |
HB 125 |
| HB 36 Additional Letters of Support 5.17.21.pdf |
SL&C 5/17/2021 2:00:00 PM |
HB 36 |
| HB 36 Amendment B.2.pdf |
SL&C 5/17/2021 2:00:00 PM |
HB 36 |