04/08/2014 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 19(RLS)(efd am)                                                                                         
                                                                                                                                
     "An   Act   relating   to   permanent   motor   vehicle                                                                    
     registration  in  the  unorganized  borough  and  in  a                                                                    
     municipality  that  has   elected  to  allow  permanent                                                                    
     registration;  relating  to  the registration  fee  for                                                                    
     noncommercial  trailers and  to the  motor vehicle  tax                                                                    
    for trailers; and providing for an effective date."                                                                         
                                                                                                                                
10:21:21 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer requested clarification  on the definition of                                                                    
"trailers" as it pertained to the legislation.                                                                                  
                                                                                                                                
10:21:40 AM                                                                                                                   
                                                                                                                                
DARRELL BREESE, STAFF,  REPRESENTATIVE BILL STOLTZE, replied                                                                    
that the bill spoke to  any type of non-commercial, personal                                                                    
use  trailers. He  noted that  statute excluded  campers and                                                                    
residential mobile homes.                                                                                                       
                                                                                                                                
10:22:42 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer queried why the  bill spoke specifically to 8                                                                    
year-old cars. Mr. Breese responded  that the 8 year-old age                                                                    
was selected  based on the  motor vehicle  registration tax;                                                                    
after  8 years  the tax  did not  decrease or  increase from                                                                    
year to year, which would  make it easier for the Department                                                                    
of Motor Vehicles (DMV) to implement the program.                                                                               
                                                                                                                                
Senator Bishop  clarified that the  bill would  allow people                                                                    
to  register a  trailer  once and  then not  have  to do  it                                                                    
again, ever. Mr. Breese replied in the affirmative.                                                                             
10:24:47 AM                                                                                                                   
                                                                                                                                
Co-Chair  Meyer inquired  how the  bill would  impact cities                                                                    
that required  I/M testing  (emissions testing).  Mr. Breese                                                                    
responded that there  were currently no cities  in the state                                                                    
that  required I/M  testing. He  furthered  that should  the                                                                    
state  implement I/M  testing, the  issue would  need to  be                                                                    
revisited.                                                                                                                      
                                                                                                                                
10:26:01 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer  asked how the  legislation would  impact the                                                                    
state financially.                                                                                                              
                                                                                                                                
10:26:22 AM                                                                                                                   
                                                                                                                                
AMY   ERICKSON,  DIRECTOR,   DIVISION  OF   MOTOR  VEHICLES,                                                                    
DEPARTMENT OF  ADMINISTRATION, replied  that since  the bill                                                                    
had been  amended to  allow municipalities  to opt  into the                                                                    
program, it  was difficult for  DMV to determine  the future                                                                    
impact. She said  that if a municipality chose to  opt in, a                                                                    
person could pay  the $25.00 for the  registration and never                                                                    
return  to the  DMV to  renew,  which would  result on  lost                                                                    
revenues.                                                                                                                       
                                                                                                                                
10:26:49 AM                                                                                                                   
                                                                                                                                
Co-Chair  Meyer understood  that  when  a person  registered                                                                    
their car the  state and the city shared  in those revenues.                                                                    
Ms. Erickson  responded that the motor  vehicle registration                                                                    
tax  was  collected   by  the  DMV  and   then  returned  to                                                                    
communities. She  gave the example  of the  $70 registration                                                                    
for an  8 year-old car  in Anchorage  would be given  to the                                                                    
community  minus  8  percent.  The 8  percent  was  the  DMV                                                                    
processing  fee which,  in turn,  was put  into the  General                                                                    
Fund in order to benefit the entire state.                                                                                      
                                                                                                                                
10:28:12 AM                                                                                                                   
                                                                                                                                
Co-Chair   Meyer  queried   the   DMV's   position  on   the                                                                    
legislation. Ms.  Erickson replied  that the  department did                                                                    
not have an  official position on the  legislation, but that                                                                    
the   department  could   implement   the  program   without                                                                    
difficulty.                                                                                                                     
                                                                                                                                
10:28:51 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer OPENED public testimony.                                                                                         
                                                                                                                                
Co-Chair Meyer CLOSED public testimony.                                                                                         
                                                                                                                                
10:29:05 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer noted the indeterminate fiscal note. He                                                                          
asked how the sponsor determined the $25.00 fee. Mr. Breese                                                                     
replied that $25.00 had seemed a reasonable fee to charge.                                                                      
                                                                                                                                
10:29:42 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer understood that the program was optional for                                                                     
municipalities. Mr. Breese replied yes.                                                                                         
                                                                                                                                
10:30:38 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:32:33 AM                                                                                                                   
RECONVENED                                                                                                                      
10:32:39 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:32:49 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Meyer discussed housekeeping.                                                                                          
                                                                                                                                
SB 119 was SCHEDULED but not HEARD.                                                                                             
                                                                                                                                
HB 263 was SCHEDULED but not HEARD.