Legislature(2009 - 2010)BUTROVICH 205

04/09/2010 08:30 AM Senate JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 386 CITATIONS TELECONFERENCED
Moved CSHB 386(FIN) Out of Committee
+= HB 108 PROP. FORECLOSURE/EXECUTION/TRUST DEEDS TELECONFERENCED
Moved SCS CSHB 108(JUD) Out of Committee
+= HB 52 POST-TRIAL JUROR COUNSELING TELECONFERENCED
Moved HB 52 Out of Committee
+= HJR 48 CRIME VICTIMS FUND PRESERVATION ACT TELECONFERENCED
Moved HJR 48 Out of Committee
+ HB 253 MECHANIC/MATERIALMEN LIENS TELECONFERENCED
Heard & Held
+ HB 287 UNIFORM ACT: PROPERTY INTEREST DISCLAIMER TELECONFERENCED
Heard & Held
+ HB 251 VEHICLE LIENS/TOWING/STORAGE/TRANSPORT TELECONFERENCED
Heard & Held
+ HB 355 CRIMINAL FINES FOR ORGANIZATIONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 190 BIOMETRIC INFORMATION FOR ID
Moved CSSB 190(JUD) Out of Committee
         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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