Legislature(2009 - 2010)BUTROVICH 205
04/09/2010 08:30 AM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| SB190 | |
| HB386 | |
| HB108 | |
| HB52 | |
| HJR48 | |
| HB253 | |
| HB251 | |
| HB253 | |
| HB287 | |
| HB355 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 386 | TELECONFERENCED | |
| += | HB 108 | TELECONFERENCED | |
| += | HB 52 | TELECONFERENCED | |
| += | HJR 48 | TELECONFERENCED | |
| + | HB 253 | TELECONFERENCED | |
| + | HB 287 | TELECONFERENCED | |
| + | HB 251 | TELECONFERENCED | |
| + | HB 355 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 190 | ||
HB 251-VEHICLE LIENS/TOWING/STORAGE/TRANSPORT
CHAIR FRENCH announced the consideration of HB 251. [CSHB
251(JUD) was before the committee.]
8:55:56 AM
REPRESENTATIVE JAY RAMRAS, sponsor of HB 251, said this
legislation serves two purposes and will be helpful to both tow
truck operators and to consumers who have had a vehicle
impounded. First, it gives towing companies first position, in
front of the lienholder or lender, for the purpose of recouping
costs for contractual vehicular towing and storage. Second, the
bill requires tow truck companies to notify the registered owner
or primary lienholder within seven working days that the vehicle
has been impounded. Currently up to 60 days elapse while the
fees add up, leaving the owner stunned by the amount owed to the
impound yard. This addition is a consumer protection.
9:00:22 AM
CHAIR FRENCH asked for confirmation that the new language in
Section 1 means that a tow truck company's charges stand on top
of a lienholder's claim.
REPRESENTATIVE RAMRAS agreed.
SENATOR WIELECHOWSKI asked what would prevent a tow truck
operator from charging an exorbitant amount and attaching a lien
to secure payment.
REPRESENTATIVE RAMRAS replied the legislation doesn't address
fees but he believes that there are customary fees in the
industry.
9:02:48 AM
SENATOR WIELECHOWSKI asked if the bill puts tow truck operators
ahead of a bank that holds a home mortgage.
REPRESENTATIVE RAMRAS said no; the phrase "on the vehicle" in
Section 1 was added by the House Judiciary Committee to address
the banking community concern that the original bill might have
given priority over real estate. Section 1 now clearly states
that the towing company's possessory lien only has priority over
other liens on the vehicle.
SENATOR COGHILL noted that he received a letter from Jim Carter
asking if there could be a public process that allows a dispute
on unreasonable fees. He said he agrees that the bill shouldn't
address the fee structure, but he doesn't want the process for
settling disputes to be ambiguous.
9:05:24 AM
REPRESENTATIVE RAMRAS said he hadn't seen the letter but some of
these issues came to light in the Senate [State Affairs
Committee.] While the bill doesn't address the fee structure, he
would encourage the 27th Legislature to consider tightening the
relationship between emergency services and consumers.
CHAIR FRENCH said it wouldn't be fair to address the fee
structure in this bill because that's a highly contentious
topic.
SENATOR COGHILL observed that some cars now cost more than the
house he bought in the '70s and while he believes that the bill
is good for tow truck companies and consumers, he isn't sure
it's good for the major lienholder.
9:08:03 AM
REPRESENTATIVE RAMRAS said the bill wasn't drafted for the
benefit of the lienholder, but public testimony repeatedly
indicated that vehicle lienholders come to the tow yard with a
possessory lien, remove the vehicle, and leave the tow truck
operator with no means to recover payment for their services.
SENATOR COGHILL said he understands that that has happened but
there's also tension over tow companies that have imposed large
storage fees in addition to the towing fee. He said he wanted to
ask the questions in this venue, but he believes that the seven
day notification and giving the tow operator preference in the
lien is exactly right.
9:10:07 AM
SHAWN HESS, S&S Towing and Recovery, said he supports HB 251.
His company often responds to late night calls to pick up
vehicles and tow them to their yard only to have the bank send a
truck to remove the vehicle from his yard without compensating
him for the towing and recovery service.
MAGGIE RABY, Alaska Towing Association (ATA), said most members
of ATA believe that HB 251 is a good first step in fixing the
towing problems in Alaska. It stops lienholders from exploiting
tow truck companies and it protects consumers by requiring
notification within seven days of towing and storage fees. The
bill provides a good balance and is a start in improving the
system.
9:13:08 AM
ELIZABETH GRISWOLD, Gabe's Towing, said her company recently had
a credit union try to take possession of their collateral
without paying the bill because the perfected lien stands before
the possessory lien. This is a loophole that lienholders exploit
to the detriment of tow companies. She and other members of the
Fairbanks towing ordinance committee would like the statutes to
be updated so that they are fair to both parties.
9:15:46 AM
CHAIR FRENCH asked if there has been any pushback from the
vehicle lending industry.
REPRESENTATIVE RAMRAS said initially some lobbyists were
aggressive. He added that he likes the bill because it fixes a
problem for the small service provider.
CHAIR FRENCH announced he would hold HB 251 in committee.
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