Legislature(2007 - 2008)CAPITOL 120

03/12/2008 01:00 PM House JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 103 BOND REQUIREMENT ON APPEAL TELECONFERENCED
Heard & Held
+ HB 331 MOTOR VEHICLES:INS/LICENSES/IMPOUNDMENTS TELECONFERENCED
Moved CSHB 331(L&C) Out of Committee
+= HB 400 MITIGATING FACTOR: CARE FOR DRUG OVERDOSE TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 331 - MOTOR VEHICLES:INS/LICENSES/IMPOUNDMENTS                                                                             
                                                                                                                                
1:30:59 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced  that the next order of  business would be                                                               
HOUSE BILL NO.  331, "An Act relating to  mandatory motor vehicle                                                               
insurance,   license  suspensions,   mandatory  impoundments   of                                                               
vehicles used in certain offenses,  and notices relating to motor                                                               
vehicles  and  driver's licenses."    [Before  the committee  was                                                               
CSHB 331(L&C).]                                                                                                                 
                                                                                                                                
1:31:10 PM                                                                                                                    
                                                                                                                                
CRYSTAL  KOENEMAN,  Staff  to Representative  Bob  Roses,  Alaska                                                               
State  Legislature, relayed  on behalf  of Representative  Roses,                                                               
sponsor,  that  HB  331  pertains  to  motor  vehicle  insurance,                                                               
license  suspensions, and  notices  relating  to motor  vehicles.                                                               
She  explained that  HB 331  reduces the  penalty for  failure to                                                               
report to the  Division of Motor Vehicles (DMV) a  name change or                                                               
address  change from  a  class B  misdemeanor to  a  fine not  to                                                               
exceed $25.   She stated that  Section 2 of the  bill provides an                                                               
affirmative defense clause to allow  a person to provide proof of                                                               
automobile  insurance in  the event  that  a person's  automobile                                                               
insurance was suspended  for failure to provide  prove of current                                                               
insurance within 30  days of the required notice.   The insurance                                                               
must be  in place at  the time of  the offense and  not purchased                                                               
after the offense,  she noted.  Currently,  conviction of driving                                                               
without vehicle  insurance would  result is a  license suspension                                                               
between  90  days  and  one  year,  she  stated.    Ms.  Koeneman                                                               
explained that proposed  Section 3 would add a  new subsection in                                                               
AS 28.22.019 that  would impose a class B misdemeanor  and a fine                                                               
of at  least $500  on a  person convicted  of not  possessing the                                                               
required vehicle  insurance.   She offered  that Section  4 would                                                               
change  the  notification process  to  send  notification to  the                                                               
current address  on file or else  to the address provided  on the                                                               
accident report.                                                                                                                
                                                                                                                                
1:34:50 PM                                                                                                                    
                                                                                                                                
KERRY HENNINGS, Driver Licensing,  Director's Office, Division of                                                               
Motor  Vehicles (DMV),  Department  of  Administration (DOA),  in                                                               
response to  Representative Dahlstrom, related that  the division                                                               
is  "very happy"  with  HB  331.   She  stated  that the  changes                                                               
contained  in  HB 331  will  assist  the  DMV with  its  customer                                                               
service  and make  it  easier  for people  who  have had  vehicle                                                               
accidents to prove they hold vehicle insurance.                                                                                 
                                                                                                                                
REPRESENTATIVE  COGHILL offered  his  recollection that  language                                                               
contained  in the  bill  passed the  body last  year  in HB  184,                                                               
sponsored  by Representative  Roses, although  the provision  was                                                               
later  removed in  the  other  body.   Thus,  HB  184 passed  the                                                               
legislature last  session without the driver's  address of record                                                               
issue   addressed,    he   stated.       Representative   Coghill                                                               
characterized HB 331 as a "very good" piece of legislation.                                                                     
                                                                                                                                
CHAIR RAMRAS characterized HB 331 as a great "fix it bill."                                                                     
                                                                                                                                
1:36:00 PM                                                                                                                    
                                                                                                                                
MS.  KOENEMAN,  in  response  to   a  request  by  Representative                                                               
Gruenberg, reiterated her explanation of HB 331.                                                                                
                                                                                                                                
CHAIR  RAMRAS, after  first  determining no  one  else wished  to                                                               
testify, closed public testimony on HB 331.                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG  referred to  Section 3 and  inquired as                                                               
to what the current penalty is for driving an uninsured vehicle.                                                                
                                                                                                                                
MS.  KOENEMAN answered  that  the current  penalty  is a  license                                                               
suspension of  90 days  to up  to one  year.   She referred  to a                                                               
handout  in the  committee  packet labeled,  "State  of Alaska  -                                                               
Division  of Motor  Vehicles,  Certificate  of Insurance"  adding                                                               
that  the  second to  the  last  paragraph states  the  mandatory                                                               
insurance.     In  response  to  Representative   Gruenberg,  Ms.                                                               
Koeneman  answered   that  the  offense   would  be  a   class  B                                                               
misdemeanor.   She  pointed out  that other  states have  imposed                                                               
stronger penalties, such as Massachusetts  whose penalty is up to                                                               
$5,000 in fines and up to one year in jail.                                                                                     
                                                                                                                                
1:39:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  relayed  his  understanding  that  the                                                               
penalty imposed  would be a  minimum fine of  $500 and a  class B                                                               
misdemeanor.                                                                                                                    
                                                                                                                                
MS. HENNINGS  answered she  did not  know, nor  was she  aware of                                                               
whether it  would be a civil  penalty plus the fine.   She stated                                                               
that the DMV executes an administrative license suspension.                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG  surmised,  then, that  the  DMV  would                                                               
assess a  reinstatement fee  of $100-$500, plus  a fine  of $500,                                                               
and the cost of insurance.                                                                                                      
                                                                                                                                
MS.  HENNINGS  answered that  DMV  does  not collect  any  fines.                                                               
However, the  court system would  collect the fine.   In response                                                               
to  Representative  Gruenberg,  Ms.   Hennings  answered  that  a                                                               
reinstatement  fee would  apply  to any  license suspension,  and                                                               
depending on  the person's  driving record  would be  required to                                                               
pay a fee ranging between $100- $500 for a revocation.                                                                          
                                                                                                                                
1:41:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG surmised that if  HB 331 is adopted that                                                               
a person  could be  subject to  90 days in  jail, $2,000  fine, a                                                               
$500  reinstatement  fee,  plus  the   cost  of  insurance.    He                                                               
expressed  concern   that  these   fines  could  be   imposed  in                                                               
situations in which the mail is delayed.                                                                                        
                                                                                                                                
REPRESENTATIVE  DAHLSTROM offered  her understanding  that it  is                                                               
the  individual's responsibility  to keep  the vehicle  insurance                                                               
current.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG  inquired  as to  whether  the  vehicle                                                               
would  also be  impounded if  proof of  insurance is  not in  the                                                               
vehicle.                                                                                                                        
                                                                                                                                
MS.  KOENEMAN  surmised  that  it  would  be  up  the  individual                                                               
municipalities to impose [impound fees.]                                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG recalled  that in  the Municipality  of                                                               
Anchorage  (MOA) the  companies also  charge  a towing  fee.   He                                                               
pointed out  that in his district  some people are on  the fiscal                                                               
margin.  He  expressed concern that the  proposed penalties would                                                               
harm many people.                                                                                                               
                                                                                                                                
1:43:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAHLSTROM   recalled  her  own   experiences  and                                                               
confirmed that the  MOA have the ability to impound.   She opined                                                               
that HB 103 isn't strict enough.                                                                                                
                                                                                                                                
REPRESENTATIVE GRUENBERG  argued that  this bill would  take away                                                               
from  the court  the ability  to suspend  imposition of  the $500                                                               
fee.  He  recapped the fees imposed under HB  103 would adversely                                                               
impact some  of his  constituents to the  extent that  some might                                                               
not be able to afford to get to work or would ignore the law.                                                                   
                                                                                                                                
CHAIR RAMRAS offered his  understanding that Representative Gara,                                                               
co-sponsor of  HB 103,  previously spoke  eloquently on  the bill                                                               
such that  it would remedy the  problem of the public  facing the                                                               
same charges  administratively and that this  bill was introduced                                                               
to address similar concerns.                                                                                                    
                                                                                                                                
MS. KOENEMAN explained  that Section 4 was voted on  by this body                                                               
during the last legislative session.                                                                                            
                                                                                                                                
REPRESENTATIVE  COGHILL  offered  his understanding  that  better                                                               
notification is  necessary since  the notices are  sometimes sent                                                               
to  the wrong  address and  the parties  are unaware  of the  DMV                                                               
requirement  for proof  of insurance  as  a result  of a  vehicle                                                               
accident.    Thus, this  bill  requires  better notification  and                                                               
establishes an affirmative defense.                                                                                             
                                                                                                                                
1:48:59 PM                                                                                                                    
                                                                                                                                
MS. KOENEMAN,  in response to Representative  Gruenberg, answered                                                               
that she  did not recall  the details of the  prior legislature's                                                               
bill in terms of the fines imposed for each section.                                                                            
                                                                                                                                
1:50:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAHLSTROM moved  to report  CSHB 331(L&C)  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  331(L&C)  was                                                               
reported from the House Judiciary Standing Committee.                                                                           
                                                                                                                                

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