Legislature(1999 - 2000)
05/18/1999 01:30 PM Senate L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 167-REPEAL MOBIL HOME DEALER REGISTRATION
CHAIRMAN MACKIE called the Senate Labor and Commerce Committee
meeting to order at 1:30 p.m. and announced HB 167 to be up for
consideration.
MR. PETER TORKELSON, aide to Representative Cowdery, said HB 167 is
a simple deregulation bill for small Alaskan businesses that sell
mobile homes. Currently, they must pay up to $1,500 to get bonded
and, in some cases, much more than that. A small business just
starting out must pay a $500 plus license fee. There is currently
no need for any of these protections because not one claim has been
made against a licensee for their bond. The result of these hoops
is to drive the small operators out of business or, at least,
outside the law. This bill levels the playing field for all
Alaskans.
CHAIRMAN MACKIE asked how many dealers there are.
MR. TORKELSON answered there are 14 dealers licensed in the State -
10 of those sell primarily used mobile homes. Only four deal in
new ones.
SENATOR KELLY gave the committee some historical perspective saying
the requirement for bonding was created because there were "a bunch
of sleazy fly-by-night artists out there selling mobile homes."
They caused enough problems that they came to the legislature and
said they wanted to upgrade the professional image of the industry.
The fact that there have been no claims is terrific. "That means
it's working."
MR. TORKELSON responded that the House Labor and Commerce Committee
heard during testimony that the "fly-by-nighters" are still there.
There is no reason for them to jump through the hoops to get
bonded, so they operate out of the back of a pickup truck and it
still occurs. Honest citizens comply, but they aren't the problem.
CHAIRMAN MACKIE asked if people are still allowed to do the
business.
MR. TORKELSON replied that they don't operate legally, but
enforcement is expensive and the last thing they want is a large
enforcement bill. The 14 legitimate people pay their own way
through fees the way the licensing program is set up.
SENATOR KELLY asked who was asking for this.
MR. MARCO PIGNALBERI, aide to Representative Cowdery, added that
two of the exclusively used dealers requested this legislation.
They don't need the bond because they "sell as-is/where-is." There
was a dispute between the new and used dealers. The used dealers
thought the new dealers want numbers of members to reduce fees. The
Department of Commerce said essentially they don't think there is
any good happening from regulating them at all. The dealers were
asked to get together and work it out but they didn't. So the
House decided to proceed with deregulation.
CHAIRMAN MACKIE asked if the Department is supporting the bill.
MR. PIGNALBERI answered that they have taken a neutral position.
Number 139
SENATOR LEMAN said he wasn't real comfortable with this. He likes
removing unnecessary government from business, but totally
repealing their licensing and bonding requirements makes him
apprehensive.
MR. PIGNALBERI said they fully expect industry to come back with a
new plan for regulation that satisfies all segments of the
industry, not just the new dealers.
SENATOR KELLY asked when this was introduced.
CHAIRMAN MACKIE answered it was introduced on March 31.
MR. TORKELSON said that new dealers offer their products with a
warranty that is a guarantee of the manufacturer of the homes. The
used dealers sell things as-is/where-is.
SENATOR KELLY commented that they would be more likely to work
something out with this hanging over their heads.
SENATOR DONLEY said he likes the bill because there have never been
any problems in this area and it is one thing they can do to lessen
government.
SENATOR KELLY asked if he was saying there hadn't been any problem
with anyone who had been bonded.
MR. TORKELSON said there had been no claims.
SENATOR KELLY said this was a piece of deregulation that would come
back and haunt them.
SENATOR DONLEY asked if there was licensing of used car dealers.
MR. TORKELSON said no.
SENATOR KELLY said he thought you proved your competence and
success by your ability to buy a bigger bond and climb up the
ladder of success.
Number 240
SENATOR LEMAN moved to report HB 167 from committee with individual
recommendations. There were no objections and it was so ordered.
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