Legislature(2021 - 2022)

2022-05-03 House Journal

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2022-05-03                     House Journal                      Page 2749
HB 104                                                                                                                        
The following, which was held from the May 2 calendar (page 2733),                                                              
was read the second time:                                                                                                       
                                                                                                                                
    HOUSE BILL NO. 104                                                                                                          
    "An Act relating to vehicle registration and registration fees;                                                             
    relating to the motor fuel tax; and providing for an effective date."                                                       

2022-05-03                     House Journal                      Page 2750
with the: Journal Page                                                                                                          
                                                                                                                                
 TRA RPT 3DP 3DNP 1NR 348                                                                                                       
 FN1: ZERO(DEC) 348                                                                                                             
 FN2: ZERO(DOT) 348                                                                                                             
 FN3: (ADM) 348                                                                                                                 
 FN4: (REV) 348                                                                                                                 
 FIN RPT CS(FIN) NEW TITLE 3DP 5NR 2073                                                                                         
 FN5: ZERO(DEC) 2073                                                                                                            
 FN6: (GOV/FUND TRANSFERS) 2073                                                                                                 
 FN7: (REV) 2073                                                                                                                
                                                                                                                                
Representative Tuck moved and asked unanimous consent that the                                                                  
following committee substitute be adopted in lieu of the original bill:                                                         
                                                                                                                                
    CS FOR HOUSE BILL NO. 104(FIN)                                                                                              
    "An Act relating to the refined fuel surcharge; and providing for                                                           
    an effective date."                                                                                                         
                                                                                                                                
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
**The presence of Representative Kreiss-Tomkins was noted.                                                                      
                                                                                                                                
Amendment No. 1 was offered  by Representative Merrick:                                                                          
                                                                                                                                
Page 1, line 1, following "surcharge;" (title amendment):                                                                     
    Insert "suspending the tax on motor fuel;"                                                                                
                                                                                                                                
Page 1, following line 5:                                                                                                       
    Insert new bill sections to read:                                                                                           
"* Sec. 2. The uncodified law of the State of Alaska is amended by                                                            
adding a new section to read:                                                                                                   
    SUSPENSION OF TAX ON MOTOR FUEL. Notwithstanding                                                                            
AS 43.40.010(a) and (b), the taxes levied under AS 43.40.010(a) and                                                             
(b) are suspended beginning the first day of the month following the                                                            
effective date of this section and ending June 30, 2023. During the                                                             
suspension, the Department of Revenue or a dealer that sells or                                                                 
otherwise transfers fuel in the state may not collect the taxes                                                                 
suspended under this section. During the suspension, a dealer or user                                                           
of refined fuel shall reduce the cost of fuel to the final consumer by an                                                       

2022-05-03                     House Journal                      Page 2751
amount equal to the amount of the tax suspended under this section.                                                             
This section does not apply to a payment of tax, interest, or a penalty                                                         
due before the suspension takes effect.                                                                                         
   * Sec. 3. The uncodified law of the State of Alaska is amended by                                                          
adding a new section to read:                                                                                                   
    TRANSITION: REGULATIONS AND RETROACTIVITY OF                                                                                
REGULATIONS. The Department of Revenue may adopt regulations                                                                    
under AS 44.62 necessary to implement this Act. Notwithstanding                                                                 
AS 44.62.240, the Department of Revenue may adopt a regulation to                                                               
implement sec. 2 of this Act that applies retroactively. A regulation                                                           
adopted by the Department of Revenue to implement sec. 2 of this Act                                                            
applies retroactively to the effective date of sec. 2 of this Act.                                                              
   * Sec. 4. Sections 2 and 3 of this Act take effect immediately under                                                       
AS 01.10.070(c)."                                                                                                               
                                                                                                                                
Renumber the following bill section accordingly.                                                                                
                                                                                                                                
Page 1, line 6:                                                                                                                 
    Delete "This"                                                                                                               
    Insert "Except as provided in sec. 4 of this Act, this"                                                                     
                                                                                                                                
Representative Merrick moved and asked unanimous consent that                                                                   
Amendment No. 1 be adopted.                                                                                                     
                                                                                                                                
Objection was heard and removed. There being no further objection,                                                              
Amendment No. 1 was adopted and the new title follows:                                                                          
                                                                                                                                
    CS FOR HOUSE BILL NO. 104(FIN) am                                                                                           
    "An Act relating to the refined fuel surcharge; suspending the tax                                                          
    on motor fuel; and providing for an effective date."                                                                        
                                                                                                                                
Amendment No. 2 was offered  by Representative Wool:                                                                             
                                                                                                                                
Page 1, line 1 (title amendment):                                                                                               
    Following "Act":                                                                                                          
         Insert "relating to vehicle registration and registration                                                            
    fees; relating to the motor fuel tax;"                                                                                    
    Following "surcharge;":                                                                                                   
         Insert "temporarily suspending the tax on motor fuel;"                                                               
                                                                                                                                

2022-05-03                     House Journal                      Page 2752
Page 1, following line 2:                                                                                                       
    Insert new bill sections to read:                                                                                           
"* Section 1. AS 28.10.155(a) is amended to read:                                                                             
         (a)  Except as provided in (c) of this section, the [THE]                                                          
    owner of a motor vehicle [, OTHER THAN A COMMERCIAL                                                                         
    MOTOR VEHICLE,] that is required to be registered under this                                                                
    chapter may elect to register the motor vehicle permanently in lieu                                                         
    of registration under AS 28.10.108 if the vehicle is at least eight                                                         
    years old and the owner resides in the unorganized borough or in a                                                          
    municipality that elects, by passage of an appropriate ordinance, to                                                        
    allow the permanent registration of motor vehicles. The permanent                                                           
    registration expires when the owner transfers or assigns the                                                                
    owner's title or interest in the vehicle. A permanent registration                                                          
    may not be renewed. On receiving the proper application and fees,                                                           
    the department shall issue to the registered owner registration                                                             
    plates, tabs, and a permanent registration form.                                                                            
   * Sec. 2. AS 28.10.155 is amended by adding new subsections to                                                             
read:                                                                                                                           
         (c)  The following vehicles are not eligible for permanent                                                             
    registration under (a) of this section:                                                                                     
             (1)  commercial motor vehicles;                                                                                    
             (2)  electric vehicles;                                                                                            
             (3)  plug-in hybrid vehicles;                                                                                      
             (4)  vehicles powered by an alternative fuel and                                                                   
    manufactured primarily for use on public roads.                                                                             
         (d)  In this section,                                                                                                  
             (1)  "alternative fuel" includes hydrogen and natural gas;                                                         
             (2)  "electric vehicle" and "plug-in hybrid vehicle" have                                                          
    the meanings given in AS 28.10.421(k).                                                                                      
   * Sec. 3. AS 28.10.421 is amended by adding a new subsection to                                                            
read:                                                                                                                           
         (k)  In addition to the other fees imposed under this section,                                                         
    the owner of an electric vehicle shall pay a special biennial                                                               
    registration fee of $100, the owner of a vehicle powered by                                                                 
    alternative fuel shall pay a special biennial registration fee of                                                           
    $100, and the owner of a plug-in hybrid vehicle shall pay a special                                                         
    biennial registration fee of $50. Fees collected under this                                                                 
    subsection shall be deposited in the special highway fuel tax                                                               
    account described in AS 43.40.010(g). In this subsection,                                                                   
             (1)  "alternative fuel" includes hydrogen and natural gas;                                                         

2022-05-03                     House Journal                      Page 2753
             (2)  "electric vehicle" means a vehicle that is                                                                   
                  (A)  powered solely by an electric motor drawing                                                              
         current from rechargeable batteries, fuel cells, or other                                                              
         portable sources of electrical current; and                                                                            
                  (B)  manufactured primarily for use on public streets,                                                        
         roads, and highways;                                                                                                   
             (3)  "plug-in hybrid vehicle" means a vehicle that is                                                              
                  (A)  capable of using gasoline, diesel fuel, or                                                               
         alternative fuel, and is powered in part by electrical energy                                                          
         using a battery storage system capable of being recharged                                                              
         from an external source of electricity; and                                                                            
                  (B)  manufactured primarily for use on public streets,                                                        
         roads, and highways.                                                                                                   
   * Sec. 4. AS 28.35.155(a) is amended to read:                                                                              
         (a)  It is unlawful to operate a motor vehicle with studded tires                                                      
    or tires with chains attached on a paved highway or road from                                                               
    May 1 through September 15, inclusive, north of 60 North                                                                    
    Latitude and from April 15 through September 30, inclusive,                                                                 
    south of 60 North Latitude, except that at any latitude on a paved                                                          
    portion of the Sterling Highway a person may not operate a motor                                                            
    vehicle with studded tires or tires with chains attached from May 1                                                         
    through September 15, inclusive. The commissioner of public                                                                 
    safety shall by emergency order provide for additional lawful                                                               
    operating periods based on unusual seasonal or weather                                                                      
    conditions. An emergency order adopted under this section is not                                                            
    subject to AS 44.62 (Administrative Procedure Act). Upon                                                                    
    application, a special individual traction permit may be issued by                                                          
    the Department of Administration allowing the operation of a                                                                
    motor vehicle with studded tires or chains at any time at the                                                               
    discretion of the vehicle owner. The fee for the special individual                                                         
    permit is one-third of the biennial registration fee applicable to                                                          
    that class of vehicle under AS 28.10.421(b), (c), or (h)                                                                
    [AS 28.10.421]. The department may provide an appropriate                                                                   
    sticker or other device identifying the vehicle to which the permit                                                         
    applies."                                                                                                                   
                                                                                                                                
Page 1, line 3:                                                                                                                 
    Delete "Section 1"                                                                                                        
    Insert "Sec. 5"                                                                                                           
                                                                                                                                

2022-05-03                     House Journal                      Page 2754
Renumber the following bill section accordingly.                                                                                
                                                                                                                                
Page 1, following line 5:                                                                                                       
    Insert new bill sections to read:                                                                                           
"* Sec. 6. AS 43.40.010(a) is amended to read:                                                                                
         (a)  In addition to the surcharge levied under AS 43.40.005,                                                           
    there is levied a tax of 16 [EIGHT] cents a gallon on all motor fuel                                                    
    sold or otherwise transferred within the state, except that                                                                 
             (1)  the tax on aviation gasoline is four and seven-tenths                                                         
    cents a gallon;                                                                                                             
             (2)  the tax on motor fuel used in and on watercraft of all                                                        
    descriptions is 10 [FIVE] cents a gallon;                                                                               
             (3)  the tax on all aviation fuel other than gasoline is three                                                     
    and two-tenths cents a gallon; and                                                                                          
             (4)  the tax rate on motor fuel that is blended with alcohol                                                       
    is the same tax rate a gallon as other motor fuel; however, in an                                                           
    area and during the months in which fuel containing alcohol is                                                              
    required to be sold, transferred, or used in an effort to attain air                                                        
    quality standards for carbon monoxide as required by federal or                                                             
    state law or regulation, the tax rate on motor fuel that is blended                                                         
    with alcohol is six cents a gallon less than the tax on other motor                                                         
    fuel not described in (1) - (3) of this subsection.                                                                         
   * Sec. 7. AS 43.40.010(b) is amended to read:                                                                              
         (b)  In addition to the surcharge levied under AS 43.40.005,                                                           
    there is levied a tax of 16 [EIGHT] cents a gallon on all motor fuel                                                    
    consumed by a user, except that                                                                                             
             (1)  the tax on aviation gasoline consumed is four and                                                             
    seven-tenths cents a gallon;                                                                                                
             (2)  the tax on motor fuel used in and on watercraft of all                                                        
    descriptions is 10 [FIVE] cents a gallon;                                                                               
             (3)  the tax on all aviation fuel other than gasoline is three                                                     
    and two-tenths cents a gallon; and                                                                                          
             (4)  the tax rate on motor fuel that is blended with alcohol                                                       
    is the same tax rate a gallon as other motor fuel; however, in an                                                           
    area and during the months in which fuel containing alcohol is                                                              
    required to be sold, transferred, or used in an effort to attain air                                                        
    quality standards for carbon monoxide as required by federal or                                                             
    state law or regulation, the tax rate on motor fuel that is blended                                                         
    with alcohol is six cents a gallon less than the tax on other motor                                                         
    fuel not described in (1) - (3) of this subsection.                                                                         

2022-05-03                     House Journal                      Page 2755
   * Sec. 8. AS 43.40.030(a) is amended to read:                                                                              
         (a)  Except as specified in AS 43.40.010(j), a person who uses                                                         
    motor fuel to operate                                                                                                       
             (1)  an internal combustion engine is entitled to a motor                                                      
    fuel tax refund of 12 [SIX] cents a gallon if                                                                           
                  (A) [(1)]  the tax on the motor fuel has been paid;                                                       
                  (B) [(2)]  the motor fuel is not aviation fuel, or motor                                                  
         fuel used in or on watercraft; and                                                                                     
                  (C) [(3)]  the internal combustion engine is not used                                                     
         in or in conjunction with a motor vehicle licensed to be                                                               
         operated on public ways; or                                                                                        
             (2)  a watercraft licensed under AS 16.05.490 or                                                               
    16.05.530 and used for commercial fishing is entitled to a                                                              
    motor fuel tax refund of five cents a gallon if the tax on the                                                          
    motor fuel has been paid.                                                                                               
   * Sec. 9. The uncodified law of the State of Alaska is amended by                                                          
adding a new section to read:                                                                                                   
    SUSPENSION OF TAX ON MOTOR FUEL. Notwithstanding                                                                            
AS 43.40.010(a) and (b), the taxes levied under AS 43.40.010(a) and                                                             
(b) are suspended beginning the first day of the month following the                                                            
effective date of this section and ending July 1, 2023. During the                                                              
suspension, the Department of Revenue or a dealer that sells or                                                                 
otherwise transfers fuel in the state may not collect the taxes                                                                 
suspended under this section. This section does not apply to a payment                                                          
of tax, interest, or a penalty due before the suspension takes effect.                                                          
   * Sec. 10. The uncodified law of the State of Alaska is amended by                                                         
adding a new section to read:                                                                                                   
    TRANSITION: REGULATIONS AND RETROACTIVITY OF                                                                                
REGULATIONS. The Department of Revenue may adopt regulations                                                                    
under AS 44.62 necessary to implement this Act. Notwithstanding                                                                 
AS 44.62.240, the Department of Revenue may adopt a regulation to                                                               
implement sec. 9 of this Act that applies retroactively. A regulation                                                           
adopted by the Department of Revenue to implement sec. 9 of this Act                                                            
applies retroactively to the effective date of sec. 9 of this Act.                                                              
   * Sec. 11. Sections 9 and 10 of this Act take effect immediately                                                           
under AS 01.10.070(c)."                                                                                                         
                                                                                                                                
Renumber the following bill section accordingly.                                                                                
                                                                                                                                
                                                                                                                                

2022-05-03                     House Journal                      Page 2756
Page 1, line 6:                                                                                                                 
    Delete "This"                                                                                                               
    Insert "Section 5 of this"                                                                                                  
                                                                                                                                
Page 1, following line 6:                                                                                                       
    Insert a new bill section to read:                                                                                          
"* Sec. 13. Except as provided in secs. 11 and 12 of this Act, this                                                           
Act takes effect July 1, 2023."                                                                                                 
                                                                                                                                
Representative Wool moved and asked unanimous consent that                                                                      
Amendment No. 2 be adopted.                                                                                                     
                                                                                                                                
Representative McCabe objected.                                                                                                 
                                                                                                                                
The question being:  "Shall Amendment No. 2 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 104(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 2                                                                                                                 
                                                                                                                                
YEAS:  14   NAYS:  25   EXCUSED:  1   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Drummond, Edgmon, Fields, Hannan, Hopkins, Josephson,                                                                    
Kreiss-Tomkins, Ortiz, Schrage, Spohnholz, Story, Tarr, Wool,                                                                   
Zulkosky                                                                                                                        
                                                                                                                                
Nays:  Carpenter, Claman, Cronk, Eastman, Foster, Gillham, Johnson,                                                             
Kaufman, Kurka, LeBon, McCabe, McCarty, McKay, Merrick,                                                                         
Nelson, Patkotak, Prax, Rasmussen, Rauscher, Shaw, Stutes,                                                                      
Thompson, Tilton, Tuck, Vance                                                                                                   
                                                                                                                                
Excused:  Snyder                                                                                                                
                                                                                                                                
Story changed from "NAY" to "YEA"                                                                                               
                                                                                                                                
And so, Amendment No. 2 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 3 was offered  by Representatives Tarr, Drummond,                                                                  
Josephson, and Schrage:                                                                                                         
                                                                                                                                
Page 1, line 1, following "surcharge" (title amendment):                                                                      
    Insert "and the motor fuel tax"                                                                                           
                                                                                                                                

2022-05-03                     House Journal                      Page 2757
Page 1, following line 5:                                                                                                       
    Insert new bill sections to read:                                                                                           
"* Sec. 2. AS 43.40.010(a) is amended to read:                                                                                
         (a)  In addition to the surcharge levied under AS 43.40.005,                                                           
    there is levied a tax of 10 [EIGHT] cents a gallon on all motor fuel                                                    
    sold or otherwise transferred within the state, except that                                                                 
             (1)  the tax on aviation gasoline is four and seven-tenths                                                         
    cents a gallon;                                                                                                             
             (2)  the tax on motor fuel used in and on watercraft of all                                                        
    descriptions is seven [FIVE] cents a gallon;                                                                            
             (3)  the tax on all aviation fuel other than gasoline is three                                                     
    and two-tenths cents a gallon; and                                                                                          
             (4)  the tax rate on motor fuel that is blended with alcohol                                                       
    is the same tax rate a gallon as other motor fuel; however, in an                                                           
    area and during the months in which fuel containing alcohol is                                                              
    required to be sold, transferred, or used in an effort to attain air                                                        
    quality standards for carbon monoxide as required by federal or                                                             
    state law or regulation, the tax rate on motor fuel that is blended                                                         
    with alcohol is six cents a gallon less than the tax on other motor                                                         
    fuel not described in (1) - (3) of this subsection.                                                                         
   * Sec. 3. AS 43.40.010(b) is amended to read:                                                                              
         (b)  In addition to the surcharge levied under AS 43.40.005,                                                           
    there is levied a tax of 10 [EIGHT] cents a gallon on all motor fuel                                                    
    consumed by a user, except that                                                                                             
             (1)  the tax on aviation gasoline consumed is four and                                                             
    seven-tenths cents a gallon;                                                                                                
             (2)  the tax on motor fuel used in and on watercraft of all                                                        
    descriptions is seven [FIVE] cents a gallon;                                                                            
             (3)  the tax on all aviation fuel other than gasoline is three                                                     
    and two-tenths cents a gallon; and                                                                                          
             (4)  the tax rate on motor fuel that is blended with alcohol                                                       
    is the same tax rate a gallon as other motor fuel; however, in an                                                           
    area and during the months in which fuel containing alcohol is                                                              
    required to be sold, transferred, or used in an effort to attain air                                                        
    quality standards for carbon monoxide as required by federal or                                                             
    state law or regulation, the tax rate on motor fuel that is blended                                                         
    with alcohol is six cents a gallon less than the tax on other motor                                                         
    fuel not described in (1) - (3) of this subsection."                                                                        
                                                                                                                                
Renumber the following bill section accordingly.                                                                                
                                                                                                                                

2022-05-03                     House Journal                      Page 2758
Page 1, line 6:                                                                                                                 
    Delete "This"                                                                                                               
    Insert "Section 1 of this"                                                                                                  
                                                                                                                                
Page 1, following line 6:                                                                                                       
    Insert a new bill section to read:                                                                                          
"* Sec. 5. Sections 2 and 3 of this Act take effect January 1, 2024."                                                         
                                                                                                                                
Representative Tarr moved and asked unanimous consent that                                                                      
Amendment No. 3 be adopted.                                                                                                     
                                                                                                                                
Representative McCabe objected.                                                                                                 
                                                                                                                                
The question being:  "Shall Amendment No. 3 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 104(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 3                                                                                                                 
                                                                                                                                
YEAS:  14   NAYS:  25   EXCUSED:  1   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Drummond, Edgmon, Fields, Hannan, Josephson,                                                                             
Kreiss-Tomkins, Ortiz, Schrage, Spohnholz, Story, Tarr, Tuck, Wool,                                                             
Zulkosky                                                                                                                        
                                                                                                                                
Nays:  Carpenter, Claman, Cronk, Eastman, Foster, Gillham, Hopkins,                                                             
Johnson, Kaufman, Kurka, LeBon, McCabe, McCarty, McKay,                                                                         
Merrick, Nelson, Patkotak, Prax, Rasmussen, Rauscher, Shaw, Stutes,                                                             
Thompson, Tilton, Vance                                                                                                         
                                                                                                                                
Excused:  Snyder                                                                                                                
                                                                                                                                
And so, Amendment No. 3 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 4 was offered  by Representatives Kurka and                                                                        
Eastman:                                                                                                                        
                                                                                                                                
Page 1, line 1 (title amendment):                                                                                               
 Delete "relating to the refined fuel surcharge;"                                                                             
                                                                                                                                
Page 1, lines 3-5:                                                                                                              
 Delete all material.                                                                                                           

2022-05-03                     House Journal                      Page 2759
Representative Kurka moved and asked unanimous consent that                                                                     
Amendment No. 4 be adopted.                                                                                                     
                                                                                                                                
Representative Josephson objected.                                                                                              
                                                                                                                                
The question being:  "Shall Amendment No. 4 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 104(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 4                                                                                                                 
                                                                                                                                
YEAS:  8   NAYS:  31   EXCUSED:  1   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Carpenter, Eastman, Gillham, Johnson, Kaufman, Kurka,                                                                    
Tilton, Vance                                                                                                                   
                                                                                                                                
Nays:  Claman, Cronk, Drummond, Edgmon, Fields, Foster, Hannan,                                                                 
Hopkins, Josephson, Kreiss-Tomkins, LeBon, McCabe, McCarty,                                                                     
McKay, Merrick, Nelson, Ortiz, Patkotak, Prax, Rasmussen, Rauscher,                                                             
Schrage, Shaw, Spohnholz, Story, Stutes, Tarr, Thompson, Tuck,                                                                  
Wool, Zulkosky                                                                                                                  
                                                                                                                                
Excused:  Snyder                                                                                                                
                                                                                                                                
Story changed from "YEA" to "NAY"                                                                                               
                                                                                                                                
And so, Amendment No. 4 was not adopted.                                                                                        
                                                                                                                                
Representative Tuck moved and asked unanimous consent that                                                                      
CSHB 104(FIN) am be considered engrossed, advanced to third                                                                     
reading, and placed on final passage.                                                                                           
                                                                                                                                
There was objection.                                                                                                            
                                                                                                                                
CSHB 104(FIN) am will advance to third reading on tomorrow's                                                                    
calendar.