10/20/2001 10:00 AM Senate L&C

             SB 189-MOTOR VEHICLE SALES AND DEALERS                                                                         
                                                                                                                              
CHAIRMAN  RANDY  PHILLIPS  called  the  Senate  Labor  &  Commerce                                                            
Committee meeting  to order  at 10:15 a.m.  and announced  that SB
  and   its  companion   bill,   HB  182,   would  be  up   for                                                              
consideration.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  ANDREW HALCRO,  Chairman  of the  House Labor  and                                                              
Commerce Subcommittee  on HB 182,  explained that  basically there                                                              
are two  sides to the bill,  the Alaska Auto Dealers  Association,                                                              
which   is  the  mover   of  the   bill,  and   the  Alliance   of                                                              
Manufacturers, which  represents the  other party affected  by the                                                              
bill. Both sides  had been very good at working out  most of their                                                              
disagreements.  The  bill  has  been  changed  from  the  original                                                              
version  by  deleting the  costly  DMV  oversight and  some  other                                                              
bureaucratic  layers. The  original fiscal  note was $500  million                                                              
and that had been substantially reduced with the changes.                                                                       
                                                                                                                                
The Subcommittee is going to be looking  at incorporating consumer                                                              
protections to the  bill and they hope to have that  draft in time                                                              
for next  session. He  added that Ed  Sniffen, Department  of Law,                                                              
had helped  them get  through some  of the  issues, but  there are                                                              
five outstanding left.  They are: termination of  a dealership and                                                              
who takes over if the owner or managing  partner should pass away;                                                              
subsidiaries and how the bill affects  not only the manufacturers,                                                              
but  some of  their  subsidiaries  (Ford Motor  Credit);  warranty                                                              
where the  dealer feels that warranty  should be reimbursed  for a                                                              
different  level of service  than manufacturers  do; possible  DMV                                                              
loopholes;   and  consumer   protection   incidents  from   actual                                                              
occurrences.  He said  he was going  to have  a teleconference  on                                                              
November 8.                                                                                                                     
                                                                                                                                
SENATOR LEMAN asked if he was confident  that they would get those                                                              
issues resolved by November 8.                                                                                                  
                                                                                                                                
REPRESENTATIVE HALCRO said he was  optimistic, but there were some                                                              
substantial concerns.                                                                                                           
                                                                                                                                
SENATOR PHILLIPS said  he heard there were concerns  about RVs and                                                              
motorcycles.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HALCRO responded  that  the bill  just relates  to                                                              
automobile dealers. However, because  of an incident in Homer with                                                              
an RV,  they were considering  adding RVS.  "We want to  make sure                                                              
that  the state  and consumers  are  protected and  we think  this                                                              
bill, if we move it forward, is an appropriate vehicle for it."                                                                 
                                                                                                                                
CHAIRMAN  PHILLIPS asked  if  he  thought this  bill  was a  major                                                              
priority in the House.                                                                                                          
                                                                                                                                
REPRESENTATIVE  HALCRO  replied that  he  couldn't  count on  that                                                              
because  he hadn't spoken  to the  sponsor. Some  reports done  by                                                              
independent  consumer  groups feel  this  kind of  legislation  is                                                              
anti-consumer, because  they will end  up paying for any  cost for                                                              
monitoring.                                                                                                                     
                                                                                                                                
CHAIRMAN PHILLIPS asked  if anyone wanted to testify  on this bill                                                              
and no one came forward. He announced  that he would hold the bill                                                              
for further consideration.                                                                                                      
             SB 189-MOTOR VEHICLE SALES AND DEALERS                                                                         
                                                                                                                                
CHAIRMAN  PHILLIPS  announced  SB   189  to  be  back  before  the                                                              
committee. He asked  if there was anyone who wanted  to testify on                                                              
it and there was no response. He set the bill aside.