HB 36-MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE  4:17:24 PM CO-CHAIR SPOHNHOLZ announced that the next order of business would be HOUSE BILL NO. 36, "An Act relating to an application for a license to operate as a dealer in motor vehicles; and requiring a dealer in motor vehicles to maintain liability and property insurance." 4:18:01 PM REPRESENTATIVE MCCARTY asked for clarification on the liability maximum of $100,000. 4:18:21 PM SOPHIE JONAS, Staff, Representative Matt Claman, Alaska State Legislature, on behalf of Representative Claman, prime sponsor of HB 36, responded yes, under the proposed legislation a motor vehicle dealer would be required to maintain public liability and property damage insurance in amounts no less than $50,000 for damage to property, $100,000 for injury including death to any one person, and $200,000 for injury including death to more than one person. REPRESENTATIVE MCCARTY asked if Ms. Jonas knew how much a dealer would pay in liability insurance at the $100,000 level. MS. JONAS deferred the question to the testifiers online. 4:19:36 PM STEVE ALLWINE, Board of Directors, Alaska Auto Dealers Association, responded that under the current policy, dealers pay $1,000, and if this bill were to pass, that number would change to $1,700-$1,900. He shared his understanding that this is not a significantly higher investment, but it is enough of an investment to make individuals applying for licenses more invested in the license. 4:20:38 PM REPRESENTATIVE NELSON commented that he had been concerned that the bill would create too high of a cost barrier for an induvial to be able to open a small used car business, but shared that he is relieved to hear from Mr. Allwine that the cost would not increase significantly. MR. ALLWINE gave additional clarification the bill is not intended to make it difficult for individuals to enter the industry, but simply to ensure that individuals entering the industry are responsible. 4:22:07 PM MARCUS WAEHLER, Member, Alaska Auto Dealers Association, shared that the current price of becoming registered to become a dealer is about $550 for the $50,000 level. CO-CHAIR SPOHNHOLZ added that this number was the result of a carefully crafted compromise that was negotiated amongst auto dealers, small and large. 4:23:10 PM CO-CHAIR SPOHNHOLZ opened public testimony on HB 36. After ascertaining that there was no one who wished to testify, she closed public testimony. [HB 36 was set aside and taken up again later for the purpose of a motion.] HB 36-MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE  4:41:59 PM CO-CHAIR SPOHNHOLZ announced that the next order of business would be a return to HOUSE BILL NO. 36, "An Act relating to an application for a license to operate as a dealer in motor vehicles; and requiring a dealer in motor vehicles to maintain liability and property insurance." 4:42:02 PM REPRESENTATIVE SCHRAGE moved to report HB 36 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 36 was reported out of the House Labor and Commerce Standing Committee.