03/16/2006 01:30 PM Senate LABOR & COMMERCE

                   SB 273-MOTOR VEHICLE SALES                                                                               
                                                                                                                                
                                                                                                                                
CHAIR BUNDE announced SB 273 to be up for consideration.                                                                        
                                                                                                                                
RYAN  MAKINSTER, staff  to Senator  Cowdery, sponsor  of SB  273,                                                               
explained that  SB 273 addresses  unintended consequences  from a                                                               
bill that was  passed last year that prohibited new  and used car                                                               
dealers from selling  new cars, but it went farther  than that by                                                               
prohibiting both  groups from selling current-model  used cars. A                                                               
current-model  used car  could  also fall  in  the current  model                                                               
year. Subsequently  if the law  was followed,  a new or  used car                                                               
dealer would  have to hold  a returned  car that has  the current                                                               
model  year on  their lot  until it  wasn't a  current model  any                                                               
more. This does disservice to  the dealers because they will have                                                               
to  hold a  car that  is  losing value  and a  disservice to  the                                                               
consumer, because he doesn't get as  broad a choice to pick from.                                                               
Secondarily, if he is a  serviceman and gets shipped overseas and                                                               
has to  return a  leased car,  it would be  difficult to  turn it                                                               
into a dealer knowing  that the dealer has to hold  it on his lot                                                               
until it is not a current model.                                                                                                
                                                                                                                                
He  said this  law is  basically being  overlooked and  this bill                                                               
changes languages  so that current-model  vehicles could  be sold                                                               
by  used and  new  car  dealers. He  said  the  Used Car  Dealers                                                               
Association supported it.                                                                                                       
                                                                                                                                
1:40:23 PM                                                                                                                    
ED SNIFFEN,  Consumer Protection,  Department of Law  (DOL), said                                                               
he has a large responsibility  for regulating the care dealers in                                                               
Alaska. He has  been working on this issue for  several years and                                                               
the industry supports it. "It's something  we need to do to allow                                                               
us to enforce our laws -  so we can sell these current-model used                                                               
vehicles to consumers."                                                                                                         
                                                                                                                                
CHAIR BUNDE  asked if  he was  comfortable with  the bill  from a                                                               
consumer's point of view.                                                                                                       
                                                                                                                                
MR. SNIFFEN replied yes.                                                                                                        
                                                                                                                                
JOHN COOK,  Used Car  Dealers Association,  supported SB  273 and                                                               
the previous testimony. He thanked  everyone who worked on it for                                                               
over a year.                                                                                                                    
                                                                                                                                
1:44:32 PM                                                                                                                    
SENATOR RALPH SEEKINS  said this addresses part  of his concerns,                                                               
but it  does not address  dealers who commit black  market fraud.                                                               
However, he stated he supported the bill.                                                                                       
                                                                                                                                
CHAIR BUNDE closed the public hearing.                                                                                          
                                                                                                                                
SENATOR  ELLIS  moved   to  pass  SB  273   from  committee  with                                                               
individual   recommendations  and   accompanying  fiscal   notes.                                                               
Senators  Davis,  Ben Stevens,  Seekins,  Ellis  and Chair  Bunde                                                               
voted yea; and SB 273 moved from committee.