Legislature(2021 - 2022)
2022-05-03 House Journal
Full Journal pdf2022-05-03 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.