03/27/2006 03:38 PM House L&C
| Audio | Topic |
|---|---|
| Start | |
| SB255 | |
| SB273 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 27, 2006
3:38 p.m.
MEMBERS PRESENT
Representative Tom Anderson, Chair
Representative Pete Kott
Representative Gabrielle LeDoux
Representative Bob Lynn
Representative Norman Rokeberg
Representative Harry Crawford
Representative David Guttenberg
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 255(FIN)
"An Act extending the termination date and duties for the Board
of Examiners in Optometry; amending the licensing, endorsement,
and renewal provisions for optometrists; and providing for an
effective date."
- MOVED CSSB 255(FIN) OUT OF COMMITTEE
SENATE BILL NO. 273
"An Act relating to a motor vehicle dealer's selling or offering
to sell motor vehicles as new or current models or as new or
current model motor vehicles having manufacturer's warranties."
- HEARD AND HELD
CS FOR SENATE BILL NO. 298(JUD)
"An Act relating to loans from trust property; relating to a
trustee's power to appoint the principal of a trust to another
trust; relating to challenges to, claims against, and
liabilities of trustees, beneficiaries, and creditors of trusts
and of trusts and estates; relating to individual retirement
accounts and plans; relating to certain trusts in divorce and
dissolutions of marriage situations; and providing for an
effective date."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: SB 255
SHORT TITLE: OPTOMETRY: EXTEND BD/LIC. ENDORSEMENT
SPONSOR(s): RULES BY REQUEST OF LEG BUDGET & AUDIT
01/30/06 (S) READ THE FIRST TIME - REFERRALS
01/30/06 (S) L&C, FIN
02/14/06 (S) L&C AT 1:30 PM BELTZ 211
02/14/06 (S) Moved CSSB 255(L&C) Out of Committee
02/14/06 (S) MINUTE(L&C)
02/16/06 (S) L&C RPT CS 5DP NEW TITLE
02/16/06 (S) DP: BUNDE, DAVIS, ELLIS, SEEKINS,
STEVENS B
03/01/06 (S) FIN RPT CS 5DP NEW TITLE
03/01/06 (S) DP: BUNDE, HOFFMAN, OLSON, DYSON,
STEDMAN
03/01/06 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/01/06 (S) Moved CSSB 255(FIN) Out of Committee
03/01/06 (S) MINUTE(FIN)
03/03/06 (S) TRANSMITTED TO (H)
03/03/06 (S) VERSION: CSSB 255(FIN)
03/06/06 (H) READ THE FIRST TIME - REFERRALS
03/06/06 (H) HES, L&C, FIN
03/13/06 (H) L&C AT 3:15 PM CAPITOL 17
03/13/06 (H) <Pending Referral>
03/23/06 (H) HES AT 3:00 PM CAPITOL 106
03/23/06 (H) Moved Out of Committee
03/23/06 (H) MINUTE(HES)
03/24/06 (H) HES RPT 1DP 4NR
03/24/06 (H) DP: SEATON;
03/24/06 (H) NR: CISSNA, GARDNER, GATTO, WILSON
03/27/06 (H) L&C AT 3:15 PM CAPITOL 17
BILL: SB 273
SHORT TITLE: MOTOR VEHICLE SALES
SPONSOR(s): SENATOR(s) COWDERY
02/08/06 (S) READ THE FIRST TIME - REFERRALS
02/08/06 (S) TRA, L&C
02/23/06 (H) TRA AT 1:30 PM CAPITOL 17
02/23/06 (H) -- Meeting Canceled --
03/02/06 (S) TRA AT 2:00 PM FAHRENKAMP 203
03/02/06 (S) Moved SB 273 Out of Committee
03/02/06 (S) MINUTE(TRA)
03/03/06 (S) TRA RPT 4DP
03/03/06 (S) DP: HUGGINS, THERRIAULT, COWDERY,
KOOKESH
03/16/06 (S) L&C AT 1:30 PM BELTZ 211
03/16/06 (S) Moved SB 273 Out of Committee
03/16/06 (S) MINUTE(L&C)
03/17/06 (S) L&C RPT 5DP
03/17/06 (S) DP: BUNDE, DAVIS, ELLIS, SEEKINS,
STEVENS B
03/20/06 (S) TRANSMITTED TO (H)
03/20/06 (S) VERSION: SB 273
03/22/06 (H) READ THE FIRST TIME - REFERRALS
03/22/06 (H) L&C, JUD
03/27/06 (H) L&C AT 3:15 PM CAPITOL 17
WITNESS REGISTER
TOM MAHER, Staff
to Senator Gene Therriault
Legislative Budget and Audit Committee
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 255 on behalf of the
Legislative Budget and Audit Committee.
PAT DAVIDSON, Legislative Auditor
Legislative Audit Division
Juneau, Alaska
POSITION STATEMENT: Answered questions during hearing on SB
255.
RYAN MAKINSTER, Staff
to Senator John Cowdery
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 273 on behalf of Senator
Cowdery, sponsor.
ACTION NARRATIVE
CHAIR TOM ANDERSON called the House Labor and Commerce Standing
Committee meeting to order at 3:38:54 PM. Representatives
Crawford, Rokeberg, Lynn, Kott, and Anderson were present at the
call to order. Representatives LeDoux and Guttenberg arrived as
the meeting was in progress.
SB 255-OPTOMETRY: EXTEND BD/LIC. ENDORSEMENT
CHAIR ANDERSON announced that the first order of business would
be CS FOR SENATE BILL NO. 255(FIN), "An Act extending the
termination date and duties for the Board of Examiners in
Optometry; amending the licensing, endorsement, and renewal
provisions for optometrists; and providing for an effective
date."
3:39:32 PM
TOM MAHER, Staff to Senator Gene Therriault, Legislative Budget
and Audit Committee, Alaska State Legislature, explained that SB
255 stems from recommendations contained in the Legislative
Audit report entitled "Department of Commerce, Community, &
Economic Development, Board of Examiners in Optometry Sunset
Audit," dated September 27, 2005. He said that Legislative
Audit concluded that the Board of Examiners in Optometry (BEO)
continues to serve a public need and is operating in the public
interest. In addition, he said, the regulation and licensing of
qualified optometrists is necessary to protect the public. He
stated that the BEO has operated effectively, adopted regulatory
changes, and supported legislation to improve its oversight
process, in addition to promoting more effective regulation of
licensed optometrists. He said that SB 255 extends the sunset
date for the BEO to June 30, 2014.
3:41:21 PM
MR. MAHER went on to say that Legislative Audit also recommended
that the legislature amend the optometry statutes to ensure they
support current license endorsements for the diagnostic use of
pharmaceutical agents. He explained that current statutory
language provides for a single endorsement for both prescribing
and use; however, the BEO is currently issuing two endorsements.
He stated that the first type of endorsement allows the
practitioner to prescribe and use pharmaceutical agents, while
the second type of endorsement is a "use-only" endorsement. He
said that current law does not authorize the use-only
endorsement; therefore, SB 255 adds a section authorizing a use-
only endorsement and "grandfathers" in the practitioners that
were given the endorsement over the years.
MR. MAHER stated that the Senate Labor and Commerce Standing
Committee deleted the statute requiring 24 hours of continuing
education instruction, which will allow the BEO to establish the
number of required hours through regulation. In addition, the
Senate Finance Committee adopted several statutory
"housekeeping" amendments at the request of the BEO. These
amendments would delete unnecessary references and improve the
BEOs function, in order to better protect the public.
3:43:35 PM
CHAIR ANDERSON, in regard to the eight year extension, opined
that there is always concern regarding whether a board should be
extended this far out. He asked if it is common to extend a
board for this length of time.
MR. MAHER replied that during the previous legislative session,
the statutory maximum [for extension of a board] was changed
from four to eight years.
3:44:18 PM
CHAIR ANDERSON acknowledged that [Legislative Audit] prefers a
longer extension date, but noted that the legislature retains
the ability to review a board or commission at any time. He
stated that while there may not be a problem with extending the
sunset date for eight years, there may be issues concerning
consumer and patient protection.
3:44:48 PM
PAT DAVIDSON, Legislative Auditor, Legislative Audit Division,
explained that the aforementioned bill was passed because the
boards and commissions, particularly those which are
occupational in nature, have gone through the sunset process
many times. She said that most of the current issues are those
regarding board efficiency and continuation of the board, the
latter of which is the purpose of the sunset process.
CHAIR ANDERSON remarked that in the past there was disagreement
on the powers and duties of optometrists. Referring to page 4,
[subsection 10], he asked for confirmation that this is not
adding any new authority.
MS. DAVIDSON confirmed that no new authority is being added.
She explained that the statute was changed in 1992, adding the
phrase "prescribe and use." She said that not all practitioners
at the time had the education to support the prescribe as well
as the use license. Furthermore, some practitioners prefer not
to prescribe. She said that while the BEO would like to
eventually have all practitioners prescribe and use, limiting
the profession to this would eliminate some practitioners. She
added that it is better for the public to have more
practitioners.
CHAIR ANDERSON noted that the bill is retroactive 14 years and
effective immediately.
3:47:32 PM
REPRESENTATIVE KOTT asked how often the BEO audits are done.
MS. DAVIDSON replied that the audits were previously done every
four years, however, this was changed to six years. She stated
that most of the boards have been in existence for over 20
years, and estimated that the BEO has been audited 5-10 times.
3:48:15 PM
REPRESENTATIVE KOTT surmised, then, that the BEO would not be
audited for a minimum of four years.
MS. DAVIDSON said that extending the sunset date to 2014 would
make this the date for the next audit; however, the legislature
may request an audit at any time.
3:48:59 PM
MS. DAVIDSON, in response to a question, said that the fees for
licensure are "always controversial." She stated that if boards
or commissions are in a deficit, it would take four to six years
to come out of deficit. She explained that currently board
expenses are consistent, with the exception of investigations,
which are a "wild card." Some boards, she said, prefer to have
a financial "cushion" to cover these costs. She stated that
when Legislative Audit looked at the BEO, it had recently
increased its fees and had not been running a deficit. She said
that this is the reason for recommending the fees be lowered;
however, an intermediate assessment will be done at the next
renewal period.
3:50:31 PM
REPRESENTATIVE KOTT moved to report CSSB 255(FIN) out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSSB 255(FIN) was
reported from the House Labor and Commerce Standing Committee.
3:50:45 PM
SB 273-MOTOR VEHICLE SALES
3:50:55 PM
CHAIR ANDERSON announced that the next order of business would
be SENATE BILL NO. 273, "An Act relating to a motor vehicle
dealer's selling or offering to sell motor vehicles as new or
current models or as new or current model motor vehicles having
manufacturer's warranties."
3:51:12 PM
RYAN MAKINSTER, Staff to Senator John Cowdery, Alaska State
Legislature, sponsor, explained that SB 273 corrects a problem
in AS 08.66.015, which resulted from changes made in 2004. He
said that the Department of Law (DOL) was directed to submit a
report to the legislature outlining any consumer or enforcement
problems associated with the aforementioned changes. He stated
that in its report to the legislature, the department concluded
that the 2004 change in statutory language was not needed and
instead created a problem for consumers and used car dealers.
He said that currently, it is illegal to sell a current model
used vehicle.
3:53:57 PM
MR. MAKINSTER noted letters of support from the Alaska Auto
Dealers Association and the Department of Law. He said that
during the previous legislative session, two bills were
introduced in an attempt to deal with this issue; however, the
language became complicated, and as a result, the current
legislation was introduced. He added that this legislation was
introduced at the recommendation of the department.
REPRESENTATIVE LEDOUX asked why, if the problem resulted from
legislation that was not needed, the sponsor does not repeal the
statute.
MR. MAKINSTER replied that the department requested that this
portion be removed in order to enforce the law.
CHAIR ANDERSON clarified that there are portions of the
aforementioned statute that are needed.
REPRESENTATIVE LYNN asked if the bill addresses warranty issues
with Canadian vehicles.
MR. MAKINSTER replied no. He stated that, according to the
department, this has not been a large concern. He noted that
there are other issues regarding warranties, which fall under
the "advertising [provision]."
3:57:41 PM
CHAIR ANDERSON commented that these issues were addressed
previously, along with the issue of recertifying Canadian
vehicles with fewer than 2,000 miles as a new vehicle.
MR. MAKINSTER agreed, adding that there are many issues in this
area; however, SB 273 does not deal with these.
3:58:16 PM
REPRESENTATIVE LYNN commented that disclosure [of a used
vehicle] was part of the problem.
3:58:52 PM
REPRESENTATIVE CRAWFORD noted that [AS 08.66.015(b)] is
repealed. He quoted from AS 08.66.015(b), which reads:
(b) A person who does business as a dealer in the
state may not offer to sell or sell a motor vehicle as
a new or current model motor vehicle having a
manufacturer's warranty unless
(1) the dealer has a current sales and service
agreement with the manufacturer and the agreement
requires the dealer, upon demand of the motor vehicle
buyer, to perform or arrange for, within a reasonable
distance of the dealer's place of business in the
state, the repair and replacement work required of the
manufacturer under the warranty; or
(2) the dealer offers to give the buyer a rebate
to cover the repair and replacement work that the
dealer cannot perform or arrange for within a
reasonable distance of the dealer's place of business.
REPRESENTATIVE CRAWFORD opined that removal of this section
would result in less consumer protection.
3:59:49 PM
MR. MAKINSTER replied that this section is part of the
problematic language. He explained that if a car dealer is
selling a vehicle with a manufacturer's warranty, the contract
requires that the car dealer perform the services as stated in
AS 08.66.015(b). He stated that this section was written for
dealers selling a service contract as a manufacturers warranty;
however, this did not address the problem.
4:00:56 PM
MR. MAKINSTER went on to say that the current language is
"redundant." In addition, he said, current model vehicles have
a manufacturer's warranty that travels with the vehicle,
regardless of where it is sold. He stated that if the statute
is left as it is, only dealers that hold an agreement with the
manufacturer would be able to sell current model used vehicles.
4:02:01 PM
MR. MAKINSTER, in response to a question, stated that under
current law, used car dealerships are unable to sell a current
model used car.
4:03:21 PM
MR. MAKINSTER, in response to additional questions, explained
that according to the manufacturers warranty, [the car
dealership which holds a contract with the manufacturer] is
required to perform service or pay to have the service
performed. He stated that [AS 08.66.015(b)] merely reiterates
this.
REPRESENTATIVE GUTTENBERG remarked that if the dealership were
to burn down, for example, the consumer would not be able to
receive warranty work. He surmised, then, that this would place
the burden on the consumer. He opined that it would be more
difficult for the consumer to request payment than for the
dealership. In addition, he said that if this is currently in
statute, he does not see a reason to repeal it.
MR. MAKINSTER replied that if something were to happen to the
dealership, the consumer would simply go to the closest
dealership.
CHAIR ANDERSON read an example from the letter of support from
the Alaska Auto Dealers Association, which reads in part
[original punctuation provided]:
For example, we are a GMC dealer and are currently
selling 2007 GMC Yukon's. The 2008 model will not
come out until August of 2007. If a customer wanted
to trade that vehicle in at any other new or used
dealership other than a GMC dealer, they could do so,
but the dealer would not be allowed to sell the trade
in until August of 2007, when the vehicle is no longer
"current model". Obviously, this scenario is
detrimental to the dealer and consumer who will be
penalized monetarily if the dealer can not sell the
trade in for eighteen months.
4:08:46 PM
MR. MAKINSTER, in response to a question, stated that [10-30]
current model vehicles are returned [annually] per dealership,
and this is overlooked. He said that if the violations were
enforced, the penalty would be up to $5,000 per violation. He
opined that this cost would be passed on to the consumer.
Therefore, this legislation would help the consumer [by removing
the aforementioned language]. In regard to an earlier comment,
he reiterated that if left in, subsection (b) would limit
current model used car sales to new car dealerships, as used car
dealerships do not meet the current statutory requirements.
4:10:22 PM
REPRESENTATIVE CRAWFORD replied that the operative word is "or,"
and added that this "seems to be a reasonable safeguard" which
will enable the consumer to receive warranty work.
CHAIR ANDERSON informed the committee that the bill will be held
over, as further clarification is needed.
REPRESENTATIVE GUTTENBERG said that while he understands the
intent of the bill, he is concerned with removing [subsection
(b)]
4:11:21 PM
REPRESENTATIVE LEDOUX agreed with this concern.
CHAIR ANDERSON opined that there is a misunderstanding, and
suggested that the [department] testify at the next hearing.
MR. MAKINSTER noted that the language came from the department.
4:11:56 PM
REPRESENTATIVE KOTT asked why there is not an immediate
effective date, if the statute is not currently being enforced.
MR. MAKINSTER replied that the department would be able to
answer this question [at the next committee hearing].
[SB 273 was held over.]
4:12:35 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:12:46 PM.
| Document Name | Date/Time | Subjects |
|---|