HOUSE BILL NO. 167 "An Act relating to mobile home dealers." PETER TORKELSON, STAFF, REPRESENTATIVE COWDERY testified, on behalf of the sponsor, in support of HB 167. He maintained that as originally drafted, House Bill 167 would have merely relieved small used mobile home dealers of burdensome bonding and licensure requirements under existing law. He stressed that this made sense, since used dealers market mobile homes without warranty. Mr. Torkelson pointed out that the Labor and Commerce Committee heard considerable testimony on the bill and resolved that the entire licensure structure, while implemented with good intentions, really didn't serve a meaningful public process commensurate with its cost to private business. Mr. Torkelson observed that there have been no claims against a licensee or their bond under the existing law. "Indeed, it is difficult to find any compelling reason for regulating mobile home dealers at all." He acknowledged that there are third party stories of irresponsible sales agents, but emphasized that these aren't the ones who can afford a bond or are willing to comply with a licensing requirement. Mr. Torkelson emphasized that most mobile home dealers are relatively small operators. "To them, the costs, or perhaps unavailability, of bonding can mean the difference between staying in business or going out of business. It can mean the difference between operating a legitimate business, or one that merely exists on the margins." He maintained that protecting small businesses and promoting a vibrant community of competition is a worthy goal. Mr. Torkelson acknowledged that there is opposition to the measure. "They argue that protections are needed, that regulation is better for business. It seems that regulation is better for their business, but not all business. If the current statutes suppress competition with burdensome bonding fees then surely someone will be in favor of keeping the status quo." Mr. Torkelson asserted that HB 167 relieves business, at no ascertainable risk to consumer protection. GALE KINCAID, TRIAD SALES, ANCHORAGE, testified via teleconference in support of the legislation. He noted that he has owned and operated a mobile home business for the last 10 years. He maintained that the bond limits competition because most companies cannot afford the bond or qualify for financing on the bond. He asserted that businesses are forced to operate without a bond. REPRESENTATIVE COWDERY, SPONSOR, questioned if Mr. Kincaid had every had or heard of a complaint against a licensed or unlicensed dealer. Mr. Kincaid responded that he was not aware of any complaints. He pointed out that used sales are on an "as is" basis. He maintained that there is no liability. Mr. Torkelson reiterated that the original bill only addressed used home mobile home dealers. Testimony in the House Labor and Commerce Committee noted that there are only 14 licenses. If used mobile home dealers were removed there would only be four new home dealers left. This is too small of a group to support the licensing structure. The Division felt that it would be meaningless to retain the law. There were no consumers requesting protection. Co-Chair Mulder MOVED to report HB 167 out of Committee with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 167 (L&C) was REPORTED out of Committee with "no recommendation" and a zero fiscal note by the Department of Commerce and Economic Development dated 4/28/99.