04/17/2017 01:30 PM Senate JUDICIARY

             SB  47-MOTOR VEHICLE DEALER FRANCHISES                                                                         
                                                                                                                                
1:34:07 PM                                                                                                                    
CHAIR  COGHILL announced  the consideration  of CSSB  47(L&C). He                                                               
asked Ms. Marasigan to provide a high level view.                                                                               
                                                                                                                                
1:34:53 PM                                                                                                                    
CHRISTINE  MARASIGAN, Staff,  Senator Kevin  Meyer, Alaska  State                                                               
Legislature,  explained  that  SB  47 relates  to  motor  vehicle                                                               
dealer  franchises.  Auto  dealers  brought  the  matter  to  the                                                               
sponsor  with  ideas  about updating  the  Alaska  statutes  that                                                               
govern  agreements  between  Alaskan  auto  dealers  and  outside                                                               
manufacturers. She  said it is  the sponsor's  general preference                                                               
that the government stay out  of negotiated contracts, but a one-                                                               
size-fits-all approach doesn't always work in Alaska.                                                                           
                                                                                                                                
She  explained that  the  bill that  came out  of  the Labor  and                                                               
Commerce  Committee, version  U, has  three sections.  Sections 2                                                               
and 3 address  Sections 20 and 21 of the  original bill. The only                                                               
difference is  the applicability section  that says that  the Act                                                               
only  applies  to  agreements  entered   into  on  or  after  the                                                               
effective date of the Act.                                                                                                      
                                                                                                                                
Section 1 is the heart of  the bill and it corresponds to Section                                                               
15 of the original bill. It  tries to focus on payment for repair                                                               
and  warranty claims  and  the calculation  of  the retail  rate.                                                               
However,  the  sponsor  has heard  anecdotally  that  local  auto                                                               
dealers would have difficulty with the doubled sequential non-                                                                  
warranty customer paid service repair  orders and the calculation                                                               
of  retail rates.  She  said the  thing that  is  good about  the                                                               
current version is that it puts  a laser focus on the main issues                                                               
that auto dealers articulated.                                                                                                  
                                                                                                                                
1:38:38 PM                                                                                                                    
CHAIR  COGHILL  listed  the individuals  who  were  available  to                                                               
answer questions  and stated  his intention to  work on  the bill                                                               
during the interim.                                                                                                             
                                                                                                                                
MS. MARASIGAN  said she is  sure the  sponsor is amenable  to the                                                               
chair's suggestions.                                                                                                            
                                                                                                                                
CHAIR  COGHILL announced  he would  hold SB  47 in  committee for                                                               
future consideration.