04/13/1993 01:30 PM House FIN

  HB 179    An  Act  relating  to  motor  vehicles and  mobile                 
            homes; and providing for an effective date.                        
                                                                               
            CS HB 179 (FIN) was reported out of Committee with                 
  a "do          pass"  recommendation and  with a  new fiscal                 
                 note by the Department of Public Safety.                      
  HOUSE BILL 179                                                               
                                                                               
       "An Act relating  to motor  vehicles and mobile  homes;                 
       and providing for an effective date."                                   
                                                                               
  Co-Chair Larson explained the changes previously made by the                 
  Committee to the work draft #8-LS0679\K dated 3/30/93.                       
                                                                               
  FRANK   DILLON,   EXECUTIVE   DIRECTOR,    ALASKA   TRUCKING                 
  ASSOCIATION (ATA), ANCHORAGE, ALASKA, stated he  represented                 
  thirty-three companies  in the State  which provide trucking                 
  services.  He  urged the Committee  to delete Sections 10  &                 
  11,  pointing  out that  portion of  the  bill had  not been                 
  publicized nor  had it  been adequately  discussed with  the                 
  municipalities  and  would  adversely  impact  the  trucking                 
  industry.                                                                    
                                                                               
  JUANITA  HENSLEY,  DIRECTOR,  DIVISION  OF  MOTOR  VEHICLES,                 
  DEPARTMENT OF PUBLIC SAFETY, stressed there has not  been an                 
  increase to fees since 1978.  Representative Martin asked if                 
  it  would  be  necessary  for  the municipal  government  go                 
  through the State to change taxes.  Ms. Hensley replied only                 
  the municipalities which  choose to  have the state  offices                 
  collect their  taxes would  be  required to  go through  the                 
  State to  request a statutory  change to increase  taxes and                 
  have the State collect them.                                                 
                                                                               
  The State currently  collects taxes for the  Municipality of                 
  Anchorage, the City of  Bethel, Dillingham, Kenai  Peninsula                 
  Borough, Ketchikan Gateway  Borough, Kodiak Island  Borough,                 
  Matanuska Borough,  Nenanna, Nome, Petersburg,  Unalaska and                 
  if Whittier were required to register by statute, they would                 
  be included.  She added, the list of  exempt cities is sited                 
  in A.S. 28.10.11.  Those areas which are exempt can not have                 
  greater than 499 traffic vehicles on the roadways.                           
                                                                               
  Representative  Brown expressed concern  with the word "tax"                 
  on Page 4, Line  23.  Ms. Hensley agreed a  more appropriate                 
  term would be "fee".                                                         
                                                                               
  Representative  Therriault  MOVED  to  delete  Section  #11.                 
  There being NO  OBJECTION, it  was deleted.   Representative                 
  Hanley  MOVED  to delete  Section  #19 which  corresponds to                 
  Section #11.  There being NO OBJECTION, it was so ordered.                   
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  Representative Brown MOVED to change the language on Page 4,                 
  Line  23, the  second  "tax" should  be  deleted and  insert                 
  "fee".  There being NO OBJECTION, it was so ordered.                         
                                                                               
  Representative  Martin  suggested   a  thirty-five   percent                 
  increase was too high.  He recommended that if the municipal                 
  government  does  tax, they  should do  it  by adding  a tax                 
  rather than taxing fees and services.                                        
                                                                               
  Representative Grussendorf  pointed out  that the  fees have                 
  not been increased since 1975.  He MOVED to increase the fee                 
  by 25%.   Representative Martin MOVED  a 10% increase.   Co-                 
  Chair MacLean OBJECTED to the 10% increase.                                  
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Hanley,  Martin,   Parnell,  Therriault,                 
                      Grussendorf.                                             
                                                                               
       OPPOSED:       Brown, MacLean, Larson.                                  
                                                                               
  Representatives Hoffman, Navarre and Foster were not present                 
  for the vote.                                                                
                                                                               
  The MOTION PASSED, (5-3).                                                    
                                                                               
  Co-Chair Larson asked that  a vote be taken on  adopting the                 
  main motion to change Section #10 from 35% to 10%.                           
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Martin,   Parnell,  Therriault,   Brown,                 
                      Grussendorf, Hanley, Larson, MacLean.                    
                                                                               
       OPPOSED:       -                                                        
                                                                               
  Representatives Hoffman, Navarre and Foster were not present                 
  for the vote.                                                                
                                                                               
  The MOTION PASSED, (8-0).                                                    
                                                                               
  Representative Brown recommended  that the  fees be  rounded                 
  off  to  the   nearest  dollar.     The  Committee   agreed.                 
  Representative Brown MOVED to report CS  HB 179 (FIN) out of                 
  Committee  with individual  recommendations  and the  fiscal                 
  note.  Representative Therriault OBJECTED.                                   
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Hanley, MacLean, Larson.                          
                                                                               
       OPPOSED:       Martin,       Parnell,       Therriault,                 
                                                                               
                                3                                              
                                                                               
                                                                               
                      Grussendorf.                                             
                                                                               
  Representatives Navarre, Foster and Hoffman were not present                 
  for the vote.                                                                
                                                                               
  The MOTION FAILED, (4-4).                                                    
                                                                               
  HB 179 was HELD in Committee for further discussion.                         
  HOUSE BILL 179                                                               
                                                                               
       "An Act relating  to motor  vehicles and mobile  homes;                 
       and providing for an effective date."                                   
                                                                               
  Co-Chair  MacLean MOVED to  RESCIND the  action taken  on HB
.  There being NO OBJECTION, it was so ordered.                           
                                                                               
  Co-Chair MacLean  MOVED to  report CS  HB 179  (FIN) out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal note.  Representative Martin OBJECTED.                   
                                                                               
  (Tape Change, HFC 93-104, Side 2).                                           
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Parnell,  Brown,   Grussendorf,  Hanley,                 
                      Larson, MacLean.                                         
                                                                               
       OPPOSED:       Therriault, Martin.                                      
                                                                               
  Representatives Navarre and Hoffman were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED, (7-2).                                                    
                                                                               
  CS  HB 179 (FIN)  was reported out  of Committee  with a "do                 
  pass"  recommendation  and   with  a  fiscal  note   by  the                 
                                                                               
                                5                                              
                                                                               
                                                                               
  Department of Public Safety.