CSHB 272(STA) AM -MOTOR VEHICLE DEALERS/SALES/ADS  CHAIR CON BUNDE announced CSHB 272(STA) AM to be up for consideration. SENATOR RALPH SEEKINS moved to adopt the proposed SCS CSHB 272(L&C), version \S, as the working document. There were no objections and it was so ordered. SENATOR SEEKINS noted that he is an automobile dealer. CHAIR BUNDE said it was noted. MS. LINDA SYLVESTER, staff to Representative Bruce Weyhrauch, sponsor, briefed the committee that HB 272 addresses a few technical changes to the automobile omnibus bill that was passed in 2002. SENATOR GARY STEVENS asked what problems removing section 1 corrects. SENATOR SEEKINS related that current law prohibits someone from selling a vehicle as a new vehicle if he doesn't have a franchise to sell that vehicle. Problems arise with the date and duration of warranties, who it applies to and associated problems with service contracts. An attempt was made to clarify this issue with a new vehicle definition. However, used car dealers who sell new cars without having a franchise have caused a hubbub about it. So, the Alaska Automobile Dealers Association (AADA) said it would forego trying to redefine a new vehicle for now and just asks the Department of Law to monitor and investigate consumer and enforcement problems associated with the current law and report back to the next legislature - providing better documentation of the concerns. MR. ED SNIFFEN, Department of Law (DOL), said the issue is whether or not Alaska wants to allow used car dealers to import current year, low mileage vehicles and sell them as used cars, but at the same time compete with franchised new cars dealers. Alaska has a law that prevents any dealer from selling a used car as a new car unless it has the manufacturer's statement of origin (MSO) on it. In effect, this means that a dealer could not sell a new 2004 car until the 2005 models come out. So, if a service man buys a 2004 Dodge Ram, has it for a few months and then gets deployed to Iraq and needs to sell it, he has a difficult time selling it to a dealer because no dealer could sell that car until the 2005 model year was available. However, he was confident that he could work with the AADA to resolve the issue. The other part of the bill cleans up language that didn't sound right and removes provisions that don't apply in Alaska. There has been no opposition to those sections. MR. STEVE ALLWINE, Secretary, Alaska Automobile Dealers Association, supported the previous comments and felt that more data was needed before a resolution was adopted. SENATOR SEEKINS moved to pass SCS CSHB 272(L&C), version \S, from committee with individual recommendations. Senators French, Gary Stevens, Davis, Seekins and Chair Bunde voted yea; and SCS CSHB 272(L&C) moved from committee.