SB 176-DISTRIBUTORSHIPS CHAIR KOTT announced that the last order of business before the committee would be CS FOR SENATE BILL NO. 176(L&C) am, "An Act prohibiting certain coercive activity by distributors; relating to certain required distributor payments and purchases; prohibiting distributors from requiring certain contract terms as a condition for certain acts related to distributorship and ancillary agreements; allowing dealers to bring certain court actions against distributors for certain relief; and exempting from the provisions of the Act franchises regulated by the federal Petroleum Marketing Practices Act, situations regulated by the Alaska gasoline products leasing act, and distributorship agreements relating to motor vehicles required to be registered under AS 28.10." Number 0328 REPRESENTATIVE McGUIRE moved to adopt HCS CSSB 176 Version [22- LS0818\B, Bannister, 4/17/02] as the working document. There being no objection, it was so ordered. CHAIR KOTT noted the presence of Senator Randy Phillips, Chair of the Senate Labor and Commerce Standing Committee, the sponsor of SB 176. Chair Kott welcomed Senator Phillips and invited him to the table, but Senator Phillips yielded to Representative Rokeberg. REPRESENTATIVE NORMAN ROKEBERG, Alaska State Legislature, explained that the changes in Version B are related to the exemptions in the title on [page 1,] lines 5 and 8. He further explained the title change. Representative Rokeberg directed attention to page 5 paragraph (4), which he characterized as a redraft of moving the scope of license activities of those individuals licensed under Title 4. Page 6 adds [new language] in paragraphs (5)-(7) and (8)(b). Number 0501 REPRESENTATIVE BERKOWITZ asked if there is a pending resolution due to the title change. REPRESENTATIVE ROKEBERG noted his anticipation of a few motions on this bill on the House floor. REPRESENTATIVE BERKOWITZ expressed his doubt that the House could do a title change to a Senate Bill. REPRESENTATIVE ROKEBERG pointed out that the sponsor is in concurrence. REPRESENTATIVE BERKOWITZ related his belief that [the resolution] could be objectionable. CHAIR KOTT announced that there is a resolution in the House Rules Standing Committee because there was a title change to SB 176 prior to this committee change. Therefore, that resolution will have to go to the House floor as well. Chair Kott further pointed out that a number of technical motions will be required for this bill. Number 0610 JOHN HAXBY characterized SB 176 as a small business protection act that is necessary to level the playing field between large well financed manufacturers and distributors and small businesses in Alaska. The passage of this legislation will protect small businesses in Alaska from unreasonable manipulation by manufacturers and distributors. Furthermore, the legislation should foster economic growth and development, keeping capital in Alaska. He pointed out that Alaska is one of the few states without a law addressing distributor agreements. Mr. Haxby noted that he has reviewed the proposed changes in the CS, which he viewed as reasonable. Number 0771 TERRY BANNISTER, Attorney, Legislative Counsel, Legal and Research Services Division, Legislative Affairs Agency, answered, in response to Chair Kott, that she didn't know the impact of this legislation on existing franchises. The legislation attempts to avoid conflict with [existing] franchises. She offered to look into that matter. CHAIR KOTT closed public testimony. Number 0836 REPRESENTATIVE BERKOWITZ moved the following amendment, Amendment 1, which addresses page 3, Sec. 45.45.730, regarding death of the dealer or holder of majority interest in dealer. CHAIR KOTT objected. REPRESENTATIVE BERKOWITZ pointed out that death isn't the only thing that can incapacitate an individual in a contractual relationship. Therefore, the language "death or disability and other successors and interests" was inserted in the appropriate spots in this paragraph. He noted that he had consulted with Ms. Bannister on this amendment. REPRESENTATIVE McGUIRE surmised that [Amendment 1] refers to the (indisc.) that tends to incapacitate. REPRESENTATIVE BERKOWITZ replied yes. CHAIR KOTT withdrew his objection. There being no objection, Amendment 1 was adopted. Number 0929 REPRESENTATIVE McGUIRE moved to report HCS CSSB 176 as amended out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HCS CSSB 176(RLS) was reported from the House Rules Standing Committee.