Legislature(1993 - 1994)
03/01/1994 08:00 AM House STA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
HB 407 - COMMEMORATIVE GOLD RUSH LICENSE PLATES Number 679 LARRY LABOLLE, STAFF, REPRESENTATIVE RICHARD FOSTER, Prime Sponsor of HB 407, presented the sponsor statement. He said HB 407 would establish a commemorative plate in recognition of the gold rush centennial currently being planned across Alaska. He said REPRESENTATIVE FOSTER offered a committee substitute for HB 407 to suit the desires of the Division of Motor Vehicles and better accomplish the Centennial Plate. Number 687 CHAIR VEZEY confirmed a committee substitute had been presented. He moved that CSHB 407 be adopted, stating that the Uniform Rules would allow the CS to be adopted with only three committee members present. Hearing no objection, CSHB 407 was adopted. Number 697 MR. LABOLLE stated that CSHB 407 would make the issuance of the commemorative plate the standard issue for license plates from 1996-2000. TAPE 94-19, SIDE A Number 012 CHAIR VEZEY asked for a clarification of the CSHB 407 time frame. MR. LABOLLE stated that page 2, Section 3, says "Section 2 of this act takes effect on January 1, 2000," which would be the end of the period. Except for a provision of Section 3, which says "takes effect January 1, 1996," this would be the date CSHB 407 would become effective. Number 031 JUANITA HENSLEY, DIVISION OF MOTOR VEHICLES (DMV), DEPARTMENT OF PUBLIC SAFETY, answered questions on CSHB 407. She said the original HB 407 was adding a special plate without setting provisions in the statute that would allow the DMV to charge anything other than the normal registration fee for that plate. She said making the design would have been very costly to the state and the DMV would have to add an additional plate to its inventory. MS. HENSLEY, working with MR. LABOLLE to make changes, understood the time limit of gold rush plates to be from January 1, 1996, to December 31, 1999, during which a special design plate would be made to take the place of the existing blue and gold plates. She said the existing design of the blue and gold plate is currently set in statute and HB 407 would allow anyone applying for or changing their registration plate to receive a special plate. In the year 2000, the statute would revert back to the mandated Alaska flag, the traditional blue and gold color. MS. HENSLEY said she had not prepared a fiscal note for CSHB 407 because it was not adopted and the DMV wanted to continue working with the sponsor, REPRESENTATIVE FOSTER. She felt CSHB 407 would be more cost effective. She explained that the approximate cost to the state for yearly license plate orders is $313,000 for replacement or new plates, and CSHB 407 would add approximately 25 percent, or $78,000, to this cost. The DMV would base the addition over a period of time. She expected more people would apply for the special plates, needing personnel services; however, additional positions would not be needed. She noted that time expenses would be a factor. Number 102 CHAIR VEZEY understood there would only be one license plate during the four year period, but he thought MS. HENSLEY stated it would be optional. Number 110 MS. HENSLEY clarified that the commemorative gold rush plate would be the only plate, aside from the other optional plates which are already available. The original HB 407 would have made an additional optional plate available, and this would be costly to the state. Number 119 CHAIR VEZEY asked how long the current license plate design had been in effect. Number 121 MR. HENSLEY believed the design had been in effect since 1978. Number 123 CHAIR VEZEY thought it began in the 1980's. He thought there was currently a design selection process underway to select a new license plate for Alaska. Number 129 MS. HENSLEY replied that the only plates the DMV would be able to redesign, without a statute change, would be personalized or vanity plates. The statute prohibits the DMV from redesigning a license plate, with the exception of specialty plates offered. Number 136 CHAIR VEZEY asked about the votes taken in Fairbanks during the summer on license plate designs. Number 140 MS. HENSLEY answered there was a proposal to change the license plate in 1993, but it was voted down on the House floor. Number 144 CHAIR VEZEY asked about the fiscal note. Number 146 MS. HENSLEY expected 25 percent of the people who presently have license plates to reapply for the new plate. She stated that CSHB 407 will also bring in revenue for the state. She did not have the exact numbers. Number 154 CHAIR VEZEY clarified that all new plates issued would be the new design. He asked how the old plates would still be valid. Number 157 MS. HENSLEY said it was optional whether or not a person would want to change their plates. Traditional plates would revert back on January 1, 2000. Number 161 CHAIR VEZEY asked if the fiscal note would increase or decrease if the time limit was extended or even made the plates indefinite. Number 165 MS. HENSLEY answered it would be CHAIR VEZEY's prerogative. The statute would have to be changed to redesign the plate. She said she has seen plates with expiration stickers throughout the state. Some plates even have the stickers all over, whereby the plate cannot be read. Number 179 REPRESENTATIVE G. DAVIS stated that CSHB 407 would be an opportunity to change the plates completely for everyone. He then asked how this would affect the fiscal note. Number 185 MS. HENSLEY replied that the DMV would then probably want to phase people into the change, which would be less costly to the state. CHAIR VEZEY referred to the $78,000 a year MS. HENSLEY had mentioned in the fiscal note. Number 197 MS. HENSLEY clarified that $78,000 was the additional cost to the normal plate order cost. She said there will be a small amount of personnel services costs mainly due to overtime. If the new plate was mandated for everyone there would be additional cost. Number 204 CHAIR VEZEY asked if CSHB 407 was amended to phase the new design in and left the new design in statute, until changed by the legislature, the fiscal would be less than the currently assumed in CSHB 407. Number 209 MS. HENSLEY said no, currently replacement plates are being ordered for people who lose their plates or are just coming into the state. She said last year's order was $312,000. Number 218 CHAIR VEZEY asked if last year's order was for approximately 60,000 plates. Number 219 MS. HENSLEY said she did not know the exact number, but each plate roughly cost $6.50 a set. The order would have to increase with the phase-in because everyone would have to replace their license plates, as opposed to only 25 percent. She commented that the costs for the phase-in could be spread over a two year period, FY 96 and FY 97. If the whole design of the license plate was changed and mandated for everyone, the existing order for the new plates reissued every year would be added to the 606,000 vehicles already registered, she said. Number 248 CHAIR VEZEY felt CSHB 407 could be amended by deleting Section 3, in which case only new plates issued would be of the new design and the Alaska flag plates would no longer be inventoried. People could keep the plates for ten years if they wanted. He asked if this scenario would provide a lesser fiscal note than the existing assumption of CSHB 407. Number 256 MS. HENSLEY responded yes; the DMV would not have to continue ordering the Alaska flag plates and the Alaska commemorative gold rush plates, beginning January 1, 1996, could be continued. The fiscal note would be less; however, the additional 25 percent to reapply for the new plates would probably still exist. She noted in 1993 the proposal was amended, and when they tried to delete Section 3 it was voted down. CHAIR VEZEY asked how long the current inventory of plates would last. MS. HENSLEY said the DMV orders plates every year at a cost of $312,000. Number 279 CHAIR VEZEY clarified that the DMV would now be ordering plates for FY 95. Number 281 MS. HENSLEY felt it was good that CSHB 407 did not take effect until January 1, 1996. Number 283 CHAIR VEZEY thought the DMV would still have to make another order of the Alaska flag plates to last until 1996. Number 285 MS. HENSLEY commented they would last through January 1, 1996. She stated a full year's order would not have to be made, only the required amount. Number 291 CHAIR VEZEY stated that a fiscal note would not be requested immediately and the committee would work on a committee substitute. He said a subcommittee would be appointed with CHAIR VEZEY and REPRESENTATIVE FOSTER to discuss the recommendations of the committee. Number 299 MS. HENSLEY stated there is a gold rush centennial committee who has sent JAY DULANY, DIRECTOR OF THE DIVISION OF MOTOR VEHICLES, designs as suggestions of what might be used. She said the DMV could try to get 3M Corporation, who creates the designs and does the coverings, to make up sample plates with the designs to show the committees. Number 309 CHAIR VEZEY adjourned the House State Affairs Committee at 10:03 a.m.
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