SENATOR TAYLOR introduced SB 105 (MOTOR VEHICLE DEALERS & BUYERS' AGENTS) as the prime sponsor, and he described the circumstances which led to his introduction of the bill. Number 272 SENATOR TAYLOR said the bill was introduced to prevent some fly-by-night car dealers, who act as brokers, take the money, and may or may not buy a car for a person. In Southeast, a broker took a lot of money, but never sent titles to some cars, and in some cases, sent no car. He described the mess in dealing with missing money and repossessed cars. SENATOR LITTLE asked for more information on what the bill would do, and SENATOR TAYLOR said he would defer to someone more knowledgeable. SENATOR JACKO asked if the bill was applicable to snow machines, outboards, or all-terrain vehicles. SENATOR TAYLOR asked his aide, JOE AMBROSE to comment on the bill and address SENATOR JACKO'S question. MR. AMBROSE thought it would depend on the definition of a motor vehicle, but indicated it might need a different title. SENATOR LITTLE asked MR. AMBROSE to describe what the legislation does. He explained the bill basically tightens up the definition of an "automobile dealer," and then adds a new provision identifying "a buyer's agent." He explained a buyer's agent as a person who does business in the state by negotiating on behalf of a buyer to purchase a motor vehicle from a motor vehicle dealer. He said the intent was to differentiate between a legitimate automobile dealer and a person who buys a car for another person, which them makes it a second owned vehicle with warrantee problems. He had a couple of other concerns dealing with a warrantee and rental cars, and he gave an example of a broker who collected money and disappeared. Number 345 SENATOR LITTLE asked if these were stolen cars. MR. AMBROSE outlined a different situation not covered in the law, and he said the bill listed some specifics that must be done by a buyer's agent for consumer protection. SENATOR LITTLE questions sparked a discussion of penalties, holding funds in trust in a buyer's account, delivery of the vehicles, transfer of title, purchasing agents, and purchase agreements. SENATOR JACKO asked if the purchase agent must be registered somewhere that can be checked. MR. AMBROSE thought they had to be licensed. SENATOR JACKO described a situation in his district during PFD time, when a bogus purchasing agent collected about $45 thousand in dividend checks to buy snow machines and four-wheelers - but never delivered them. SENATOR TAYLOR wanted to hold the bill for amendments that would prevent a re-occurrence of the problem in SENATOR JACKO'S district. Number 408 SENATOR TAYLOR explained the problem he saw in fraudulent ads promising a good deal by brokers, who purchase the car and a warrantee problem. He wanted to prevent such transactions. He and SENATOR JACKO discussed the fraudulent deals in their districts. SENATOR TAYLOR entertained a motion to adopt CS FOR SENATE BILL NO. 105 (JUD), BANNISTER, 3/2/93 and SENATOR JACKO so moved. Without objections, so ordered. MR. AMBROSE outlined the changes between the original and the committee substitute. On page 1, line 5, he explained language which was added to protect both the consumer and the dealer, and on page 3, line 5, specific warrantee restrictions. He directed the committee to page 3, line 15 to discuss provisions for the money in the transaction, and they discussed the problems involved. SENATOR JACKO asked if the agent was going to be required to be bonded, and MR. AMBROSE referred the question to someone who could explain bonding requirements. JOE HAYES, representing the Alaska Auto Dealers Association, testified in support of the bill. SENATOR TAYLOR made known his intent to return the bill on Friday, to allow time to accommodate SENATOR JACKO'S inclusion of other vehicles and additional questions by SENATOR LITTLE. Number 475 MR. AMBROSE said he knew there was a bonding requirement and would look for it.