02/25/1993 01:35 PM Senate L&C

  SENATOR KELLY  introduced SB  105 (MOTOR  VEHICLE DEALERS  &                 
  BUYERS' AGENTS) and invited the prime sponsor, SENATOR ROBIN                 
  TAYLOR, to testify.                                                          
                                                                               
                                                                               
  SENATOR TAYLOR gave  some background  information on SB  105                 
  dealing  with  an  automobile  broker,  who was  working  in                 
  Alaska, going out  of business without notice.  He explained                 
  it left   at least  30 people in  Southern Southeast  Alaska                 
  either without the car  they thought they had purchased,  or                 
  without legal title to a vehicle which had been delivered to                 
  them.  He further explained that  many were out dollars, and                 
  others were stuck in a nightmare that began with a  dream of                 
  owning their first new car.                                                  
                                                                               
  SENATOR TAYLOR  said the legislation  was an attempt  to see                 
  that problem would never be repeated by the establishment of                 
  a new definition in state law for a buyer's agent.  It would                 
  regulate the  activities of  such an  agent  and define  the                 
  difference between a buyer's agent and a licensed dealer.                    
                                                                               
  SENATOR TAYLOR said the bill would offer real  protection by                 
  requiring any fees collected by the  agent be held in escrow                 
  until the vehicle was delivered.  The buyer's agent would be                 
  required to maintain a fleet  record on each sale, including                 
  evidence of delivery.  SENATOR  TAYLOR reviewed the criminal                 
  penalties, asked for support for SB 105, and gave an example                 
  from Ketchikan to support his testimony.                                     
                                                                               
  SENATOR  KELLY  asked how  many  car brokers  there  were in                 
  Alaska, and there  was some  discussion with SENATOR  TAYLOR                 
  over possible numbers.                                                       
                                                                               
  Number 061                                                                   
                                                                               
  In  a  series  of  questions  and  answers,  SENATOR  RIEGER                 
  discussed with SENATOR TAYLOR the role  of the agent and the                 
  delivery of the car.                                                         
                                                                               
  SENATOR  KELLY clarified the legislation did  not apply to a                 
  licensed dealer or a salesman for a dealer.                                  
                                                                               
  JOE   AMBROSE,  aide   to  SENATOR   TAYLOR,  expanded   the                 
  information on warranties and the role of the buyer's agent.                 
                                                                               
                                                                               
  SENATOR RIEGER gave an example to  ask when a person becomes                 
  a dealer in Alaska.                                                          
                                                                               
  SENATOR KELLY invited STEVE ALLWINE, representing automobile                 
  dealers throughout the state of Alaska, to testify.                          
                                                                               
  Number 124                                                                   
                                                                               
  MR. ALLWINE voiced support from all of the dealers in Alaska                 
  on behalf of SB  105, and he commended SENATOR  TAYLOR'S for                 
  his introduction of the legislation.   He added insight into                 
  some  additional  problems  such  as  buyers  who   received                 
  different  vehicles   from  those  requested,   buyers  sold                 
                                                                               
                                                                               
  vehicles that were  not new, warranties that  were different                 
  from   expected,   lack   of   safety   notifications,   and                 
  manufacturers' recalls.   He explained some of  the problems                 
  did not surface until several years later, leaving consumers                 
  and local  dealers with the  dilemma.  He  quoted automobile                 
  manufacturers as being dissatisfied with the manner in which                 
  the brokers handled their automobiles.                                       
                                                                               
  Number 161                                                                   
                                                                               
  SENATOR  RIEGER  asked  questions  about  warranties  of MR.                 
  ALLWINE in connection with Section 1,  and how it would work                 
  in practice in  Alaska.  MR.  ALLWINE thought it would  work                 
  because  of  the  words, "reasonable  distances."    He gave                 
  examples of warranty failures, and  how they were handled in                 
  the  rural  areas  in  Alaska.    They  discussed  automatic                 
  warranties among  Chrysler vehicles, including  the purchase                 
  of vehicles from Anchorage to Southeast Alaska.                              
                                                                               
  SENATOR KELLY clarified  his testimony  dealt with new  cars                 
  rather than used, and MR. ALLWINE agreed.                                    
                                                                               
  SENATOR  PEARCE  moved  to pass  SENATE  BILL  NO.  105 from                 
  committee   with   individual   recommendations.     Without                 
  objections, so ordered.