Legislature(1995 - 1996)

03/29/1996 01:50 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
  SENATE BILL 226                                                              
       "An  Act relating  to  biennial registration  of  motor                 
       vehicles; imposing biennial  registration fees on motor                 
       vehicles and authorizing a scheduled biennial municipal                 
       tax  on  motor  vehicles; relating  to  fees  for motor                 
       vehicle emissions  control programs; and  providing for                 
       an effective date."                                                     
  TOM WILLIAMS, STAFF, SENATOR STEVE FRANK, stated that SB 226                 
  would require motor vehicle registration  to be renewed once                 
  every two years instead  of annually.  This would  result in                 
  shorter  customer  service lines  at  the Division  of Motor                 
  Vehicles (DMV) by reducing the necessity for frequent public                 
  Mr. Williams commented,  to help offset the burden of having                 
  to pay two  years fees at  once, the legislation would  give                 
  the public a small registration fee break.  However, despite                 
  the  small  fee break  to the  public,  the State  and those                 
  municipalities which have a motor vehicle registration would                 
  receive  additional  one  time  revenues   in  the  year  of                 
  implementation due to the accelerated collections.                           
  Mr.  Williams requested the  Committee's consideration  of a                 
  technical amendment #9-LS1352\K.2, Ford,  3/22/96, Amendment                 
  effective date section.                                                      
  Mr. Williams added  that Amendment  #2, #9LS1452\K.3,  Ford,                 
  3/25/96, and Amendment #3, #9LS1452\K.7, Cook, 3/28/96, were                 
  also recommended for adoption.  [Copies on file].                            
  Representative  Parnell MOVED  to  adopt Amendment  #1 which                 
  would  change  the effective  date  to 1/01/97  for biennial                 
  registrations.  There being NO OBJECTION, it was adopted.                    
  Co-Chair Hanley  questioned the feasibility  of implementing                 
  the legislation by 7/01/96.                                                  
  OF ENVIRONMENTAL CONSERVATION, testified in favor of a joint                 
  implementation of  the biennial  vehicle inspection  program                 
  with a biennial  vehicle registration program.   He assessed                 
  that the Department  submitted a letter requesting  that the                 
  implementation  date for the  biennial inspection program be                 
  changed from 7/01/96 to 1/01/97.                                             
  Mr.  King noted  that  vehicle  inspection and  registration                 
  programs are intricately  linked, and it would  be essential                 
  to have an  orderly transition period.   He advised that  he                 
  has had problems  with the modification of  the software for                 
  the  test  analyzers.    The  analyzer   manufacturers  have                 
  indicated  that   they  could  not  complete   the  software                 
  modifications until 11/01/96.                                                
  Mr.  King  continued,  if  the  amendment was  adopted,  the                 
  Department  would  have to  implement  a manual  system that                 
  would  be  labor  intensive and  would  require considerable                 
  cooperation from the facilities performing the tests.                        
  The  second option and  the one preferred  by the Department                 
  would be to delay the implementation of the biennial vehicle                 
  inspection  program  until  1/01/97.    Under  that  option,                 
  computer  software  modifications would  be completed.   Mr.                 
  King added that  the Department would  request that the  two                 
  programs be implemented simultaneously.                                      
  VEHICLES,  DEPARTMENT  OF  PUBLIC SAFETY,  stated  that  the                 
  legislation would need to be passed  by 4/01/96 in order for                 
  the  Department to  be  able  to  implement it  by  7/01/96.                 
  Renewal registration  forms are  mailed out  four months  in                 
  advance  and  people need  to  know  the duration  of  their                 
  registration and how much it will cost them.                                 
  Co-Chair   Hanley  agreed  that   both  concerns  should  be                 
  implemented at the same time.  Mr. King pointed out that the                 
  statutory  starting time  had been based  on SB 28.   SB 226                 
  would change the  initial date.  Co-Chair  Hanley encouraged                 
  passage of the amendment in  which both would begin 1/01/97.                 
  Mr.  Williams  stated that  the motion  would not  require a                 
  title  change resolution,  although,  would  require  a  2/3                 
  effective date vote change.                                                  
  Mr.  King  responded  to  Representative  Brown's  question,                 
  stating that the Department would do  the best they could in                 
  implementing  the program without the requested $50 thousand                 
  dollar allocation,  while reminding  the Committee that this                 
  would be a fiscally "tight" budget year.  Mr. King explained                 
  that the $50 thousand  dollar note would be an  on-going fee                 
  as  authorized  in  SB  28  language.    Amendment   #2  was                 
  Representative Mulder MOVED to adopt Amendment #3.  [Copy on                 
  file].  There being NO OBJECTION, it was adopted.                            
  Representative Mulder MOVED to WITHDRAW Amendment #4.  [Copy                 
  on file].  There being NO OBJECTION, it was WITHDRAWN.                       
  Representative Mulder spoke to Amendment #5,  #9-LS1452\K.4,                 
  Ford, 3/28/96.  [Copy on file].  He noted that the amendment                 
  had been requested by the Municipality of Anchorage and that                 
  it would allow that the inspection program not be related to                 
  the  air  quality  program.    Mr. Williams  indicated  that                 
  Senator Frank was opposed to Amendment #5.                                   
  Representative Mulder spoke  to Amendment #6, #9-LS1452\K.8,                 
  Ford, 3/29/96.  [Copy on file].  He stated that Amendment #6                 
  had been  provided by car  rental agencies  in Anchorage  to                 
  address a matter of equity in the registration costs.                        
  Co-Chair Hanley  requested that  a written  response to  the                 
  amendments be provided  by the Department of  Public Safety,                 
  the  Department  of   Environmental  Conservation  and   the                 
  sponsor, Senator Frank.                                                      
  CS  SB  226  (FIN) am  was  HELD  in  Committee for  further                 

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