04/25/2002 02:35 PM Senate L&C

             HB 182-MOTOR VEHICLE SALES AND DEALERS                                                                         
                                                                                                                                
                                                                                                                                
CHAIRMAN STEVENS announced HB 192 to be up for consideration.                                                                   
                                                                                                                                
MS.  MAY ERICKSON,  Staff to  Representative Murkowski,  explained                                                              
that this bill  began last session  and has gone through  a lot of                                                              
work and is in a form that is supported by all parties.                                                                         
                                                                                                                                
     It is a  comprehensive motor-vehicle act  that addresses                                                                   
     the  relationship  between   motor-vehicle  dealers  and                                                                   
     manufacturers and  perspective auto buyers  by providing                                                                   
     guidelines to protect dealers  and consumers from abuses                                                                   
     within  the  automobile  industry. The  bill  creates  a                                                                   
     platform for a dispute resolution  between manufacturers                                                                   
     and  motor  vehicle  dealers with  regard  to  franchise                                                                   
     disagreements   and  brings   agreements  made   between                                                                   
     manufacturers and  dealers under jurisdiction  of Alaska                                                                   
     courts.  The  bill  sets  forth   uniform  processes  to                                                                   
     transfer,  terminate,  or convey  franchise  agreements.                                                                   
     Protections  are also  provided  against replacement  by                                                                   
     manufacturers  of new competing  dealerships within  too                                                                   
     close a proximity to a current  dealer's market area and                                                                   
     provides uniform guidelines  when designating successors                                                                   
     in the case  of death or incapacity of  franchisees. The                                                                   
     bill  also  provides  meaningful   protection  for  auto                                                                   
     buyers  by   imposing  safeguards  regarding   deceptive                                                                   
     advertising,  price  comparisons   and  availability  of                                                                   
     advertised  items. The  bill also states  that a  dealer                                                                   
     must,  when  obtaining  a used  motor  vehicle  from  an                                                                   
     individual  consumer,  make  reasonable inquiry  of  the                                                                   
     seller  and  the  seller must  provide  in  writing  the                                                                   
     condition  of  that  vehicle   including  the  vehicle's                                                                   
     accident  and repair history.  The dealer then  provides                                                                   
     that  statement  to  a  prospective   purchaser  of  the                                                                   
     vehicle. Dealers  must also disclose if the  vehicle was                                                                   
     purchased from  an auction or wholesaler  (Just inserted                                                                   
     on the House floor and passed unanimously).                                                                                
                                                                                                                                
MR. DON WHATTLEY, Alliance of Automobile  Manufacturers, supported                                                              
HB 182.                                                                                                                         
                                                                                                                                
MR. MARK MUELLER, General Motors, supported HB 182.                                                                             
                                                                                                                                
MR. STAN HURST, Chrysler Corporation, supported HB 182.                                                                         
                                                                                                                                
MS. KERRY  HENNINGS, Division  of Motor  Vehicles, said  they also                                                              
support HB 182.                                                                                                                 
                                                                                                                                
MS.  ERICKSON said  that she  forgot  one thing,  an amendment  by                                                              
Representative Dyson,  that would allow  a person to sell  10 used                                                              
motor  vehicles per  year  and still  not have  to  register as  a                                                              
dealer. After doing  research, she found that five  is the correct                                                              
amount  and asked  if they  would  consider amending  the bill  to                                                              
reflect  that. She  explained  that  five vehicle  is  set out  in                                                              
federal law and is also recommended  by DMV and the AG's office as                                                              
well.                                                                                                                           
                                                                                                                                
CHAIRMAN STEVENS  asked if Representative Dyson  raised the number                                                              
from 5 to 10 on the floor.                                                                                                      
                                                                                                                                
MS. ERICKSON replied yes, but he  was thinking that many people in                                                              
the Valley buy used cars quite frequently  for family members, fix                                                              
them up  and turn them  over, but there  is an exemption  for that                                                              
kind of transaction for family members.                                                                                         
                                                                                                                                
CHAIRMAN  STEVENS  asked  if  it   was  okay  with  Representative                                                              
Murkowski.                                                                                                                      
                                                                                                                                
MS. ERICKSON replied that she was fine with it.                                                                                 
                                                                                                                                
4:50 - 5:00 - fire drill                                                                                                        
                                                                                                                                
SENATOR AUSTERMAN  moved on page 4,  line 19 to delete  "new or 10                                                              
used". There were no objections and it was so ordered.                                                                          
                                                                                                                                
SENATOR AUSTERMAN  moved to  pass SCS  HB 182(L&C) from  committee                                                              
with individual  recommendations. There were no  objections and it                                                              
was so ordered.