03/10/1993 02:07 PM Senate JUD

  SENATOR TAYLOR introduced  SB 105  (MOTOR VEHICLE DEALERS  &                 
  BUYERS' AGENTS) as the prime  sponsor, and he described  the                 
  circumstances which led to his introduction of the bill.                     
                                                                               
  Number 272                                                                   
                                                                               
  SENATOR TAYLOR said the bill was introduced to  prevent some                 
  fly-by-night  car  dealers,  who act  as  brokers,  take the                 
  money,  and may  or may  not buy  a car  for a  person.   In                 
  Southeast, a  broker took  a lot  of money,  but never  sent                 
  titles  to some cars,  and in some  cases, sent no  car.  He                 
  described  the  mess  in  dealing  with  missing  money  and                 
  repossessed cars.                                                            
                                                                               
  SENATOR LITTLE asked for  more information on what  the bill                 
  would do, and SENATOR TAYLOR said  he would defer to someone                 
  more knowledgeable.                                                          
                                                                               
                                                                               
  SENATOR  JACKO asked  if  the bill  was  applicable to  snow                 
  machines, outboards, or all-terrain vehicles.                                
                                                                               
  SENATOR TAYLOR asked his aide, JOE AMBROSE to comment on the                 
  bill and address SENATOR JACKO'S question.                                   
                                                                               
  MR. AMBROSE thought it  would depend on the definition  of a                 
  motor  vehicle,  but  indicated it  might  need  a different                 
  title.                                                                       
                                                                               
  SENATOR  LITTLE  asked  MR.  AMBROSE  to describe  what  the                 
  legislation does.  He explained  the bill basically tightens                 
  up the definition of an "automobile dealer," and then adds a                 
  new provision identifying "a buyer's agent."  He explained a                 
  buyer's agent as a  person who does business in the state by                 
  negotiating on behalf of a buyer to purchase a motor vehicle                 
  from  a motor vehicle  dealer.   He said  the intent  was to                 
  differentiate between  a legitimate automobile dealer  and a                 
  person who buys a  car for another person, which  them makes                 
  it a second owned vehicle with warrantee problems.  He had a                 
  couple of other concerns dealing with a warrantee and rental                 
  cars, and he gave an example of a broker who collected money                 
  and disappeared.                                                             
                                                                               
  Number 345                                                                   
                                                                               
  SENATOR LITTLE asked if these were stolen cars.  MR. AMBROSE                 
  outlined a different  situation not covered in  the law, and                 
  he said the bill listed some specifics that must be  done by                 
  a buyer's agent for consumer protection.                                     
                                                                               
  SENATOR LITTLE questions sparked  a discussion of penalties,                 
  holding funds in trust in a buyer's account, delivery of the                 
  vehicles, transfer of title, purchasing agents, and purchase                 
  agreements.                                                                  
                                                                               
  SENATOR JACKO asked if the purchase agent must be registered                 
  somewhere that can be checked.  MR. AMBROSE thought they had                 
  to be licensed.  SENATOR JACKO  described a situation in his                 
  district  during  PFD time,  when  a bogus  purchasing agent                 
  collected about $45 thousand in  dividend checks to buy snow                 
  machines and four-wheelers - but never delivered them.                       
                                                                               
  SENATOR TAYLOR wanted  to hold the bill for  amendments that                 
  would  prevent  a re-occurrence  of  the problem  in SENATOR                 
  JACKO'S district.                                                            
                                                                               
  Number 408                                                                   
                                                                               
  SENATOR TAYLOR explained  the problem  he saw in  fraudulent                 
  ads promising a good  deal by brokers, who purchase  the car                 
  and  a  warrantee  problem.    He  wanted  to  prevent  such                 
  transactions.  He and SENATOR JACKO discussed the fraudulent                 
                                                                               
                                                                               
  deals in their districts.                                                    
                                                                               
  SENATOR TAYLOR entertained a motion  to adopt CS FOR  SENATE                 
  BILL NO.  105 (JUD), BANNISTER, 3/2/93 and  SENATOR JACKO so                 
  moved.  Without objections, so ordered.                                      
                                                                               
  MR. AMBROSE outlined  the changes  between the original  and                 
  the committee substitute.   On page 1, line 5,  he explained                 
  language  which was added  to protect both  the consumer and                 
  the dealer,  and  on  page 3,  line  5,  specific  warrantee                 
  restrictions.  He directed the committee  to page 3, line 15                 
  to discuss provisions for the money in  the transaction, and                 
  they discussed the problems involved.                                        
                                                                               
  SENATOR JACKO asked if the agent was going to be required to                 
  be bonded, and MR. AMBROSE referred  the question to someone                 
  who could explain bonding requirements.                                      
                                                                               
  JOE HAYES, representing the Alaska Auto Dealers Association,                 
  testified in support of the bill.                                            
                                                                               
  SENATOR TAYLOR made known  his intent to return the  bill on                 
  Friday,  to  allow  time  to  accommodate   SENATOR  JACKO'S                 
  inclusion  of other  vehicles  and  additional questions  by                 
  SENATOR LITTLE.                                                              
                                                                               
  Number 475                                                                   
                                                                               
  MR. AMBROSE said he knew there was a bonding requirement and                 
  would look for it.