Legislature(1995 - 1996)

04/27/1995 03:05 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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  SENATE BILL NO. 28                                                           
                                                                               
       An Act repealing  an additional  fee for motor  vehicle                 
       registration not conducted  by mail and limiting  motor                 
  vehicle   emissions inspection to once every two years.                      
                                                                               
  Co-chairman  Halford directed that SB 28  next be brought on                 
  for discussion.   Senator Donley explained that  the purpose                 
  of  the  bill is  two-fold.   The  first  is  change of  the                 
  inspection  and maintenance  program for certification  to a                 
  biennial rather than  an annual basis.   He asked that  this                 
  section, only, be  the one moved  with the bill.   Remaining                 
  sections within  the bill  are not  interdependent and  have                 
  generated   increasing  concern.      Both   the  Dept.   of                 
  Environmental  Conservation  and   the  division  of   motor                 
  vehicles  have indicated  support  for the  bill.   With the                 
  additional jurisdictional capability,  they believe they can                 
  sell biennial testing  to the  federal EPA.   Alaska is  the                 
  only state that  does annual  testing.  California  conducts                 
  biennial  testing statewide.   Movement to  biennial testing                 
  would save Alaskans time and money.                                          
                                                                               
  Co-chair Halford  inquired regarding  fines and  fees within                 
  the  bill.  Senator Donley  responded  that the  legislation                 
  increases  the  current  $75  fine  to  $200.     Ron  King,                 
  Department of Environmental  Conservation testified that the                 
  current fine is a class A  misdemeanor for which a complaint                 
  must be filed in court.  The fine can amount to $5.0 and one                 
  year in jail.  The proposed  change would make it a citation                 
  and  not require court  action.  He stated  that the Dept of                 
  Environmental   Conservation   has   extended  the   vehicle                 
  inspection program to  commuters to  and from the  Matanuska                 
  Valley  and  achieved 75%  compliance.   He said  that 2,200                 
  vehicles  have  been  inspected.    The  division  of  motor                 
  vehicles  reports  that  2700  commute.     Some  are  under                 
  investigation as class A misdemeanors.                                       
                                                                               
  Juanita Hensley, Chief,  Driver Services, Division  of Motor                 
  Vehicles,  Dept of Public Safety,  said the bill would bring                 
  in $2.55  million in additional revenue.  She explained that                 
  in  1994 the $10  fee was waived  for 15%  of 6,500 vehicles                 
  registered in the state.  The  additional revenue is derived                 
  from doing  away with  waiver of  the  $10 fee.   The  final                 
  source  of new revenue would be new vehicles or out-of-state                 
                                                                               
                                                                               
  vehicles registered  for the  first time  in Alaska.   These                 
  vehicles would pay  the increased  fee because the  original                 
  transaction involving a  title cannot be  done by mail.   In                 
  1994 there  were approximately 140,000  registrations.  This                 
  would generate $1.4 million  in revenue.  The total  revenue                 
  from  all these  sources  would be  $2.5  million.   Senator                 
  Rieger expressed support for giving a credit for registering                 
  by mail rather than a penalty for going into the division of                 
  motor  vehicles  to  register.    Co-chair Halford  inquired                 
  concerning how to make the legislation revenue neutral.  Ms.                 
  Hensley responded that the status  quo would make it revenue                 
  neutral.                                                                     
                                                                               
  Senator Sharp MOVED to  adopt amendment no. 1.   Ms. Hensley                 
  stated that in  Anchorage people can register  their cars at                 
  emission  testing  stations.   One  station in  Anchorage is                 
  currently  not  charging  the $10  fee.    Approximately 150                 
  registrations  are  processed  daily through  the  stations.                 
  They process  the work for the DMV,  and if they collect the                 
  $10, they keep it.  They have gone to the expense of putting                 
  in  computers  and hook  ups to  accomplish  the work.   The                 
  Legislative Budget  and Audit  Committee approved $100.0  to                 
  pay for  the data  processing charge-back  and for  required                 
  data storage.                                                                
                                                                               
  There   was  considerable   discussion   of  extending   the                 
  registration period to two years.   Mr. King stated that the                 
  department has the ability to go  to a two-year period.  The                 
  department's intention has  been to move to  that time frame                 
  when  possible.    It  is   contingent  upon  Anchorage  and                 
  Fairbanks  attaining  standards.    He  attested  to  recent                 
  changes in terms  of reliability  of automobiles, and  noted                 
  that with the  enforcement provisions in the  proposed bill,                 
  the  department  can begin  working  on cases  and achieving                 
  greater  compliance.  These items are  key to EPA acceptance                 
  of the program change.  The Clean Air Act will not allow the                 
  state to be less  stringent.  Mr. King reiterated  that with                 
  increased enforcement  and compliance  and newer  technology                 
  cars, the department can extend testing to a two-year period                 
  and  make  the argument  that there  is  no decrease  to the                 
  overall effectiveness of the program.                                        
                                                                               
  Ms. Hensley noted that there are 631,000 vehicles registered                 
  in Alaska.   She stated  that deletion of  sections 1,3,4,5,                 
  and 6 would render the bill revenue neutral and maintain the                 
  status quo.  Emission program  portions relating to biennial                 
  testing would  remain in place.   No objection  being heard,                 
  amendment no. 1 was ADOPTED.                                                 
                                                                               
  Senator  Donley  MOVED to  adopt  the proposed  amendment to                 
  render the bill revenue neutral  by deleting sections 1,3,5,                 
  and 6, as well as a conforming amendment that sec. 3 reflect                 
  the statutory status quo.   He also included need  to insert                 
  the word  "not" after  the word "or"  in amendment no.  1 to                 
                                                                               
                                                                               
  conform the earlier adopted amendment to changes proposed by                 
  amendment no.  2.   Senator Rieger  OBJECTED.   He suggested                 
  that the bill could be made  revenue neutral by not deleting                 
  language on  page 2, lines 10,  11, and 12,  which refers to                 
  allowing a waiver  of the $10 fee for "a good cause based on                 
  criteria established in regulations by  the department."  It                 
  would  keep  the status  quo  but invert  the  fee structure                 
  eliminating the  penalty and giving  a credit instead.   Ms.                 
  Hensley noted  that Sections  10 and 11  should reflect  new                 
  section numbers.  The department would  like to be given the                 
  capability to  serve the public  so that neither  the public                 
  nor workers  are  burdened further.   That  was the  initial                 
  reason for inclusion of the $10 fee in earlier  legislation.                 
  Fiscal notes for both  the Dept. of Public Safety  and Dept.                 
  of Environmental Conservation are accurate.   In response to                 
  a question  from  Co-chairman Halford,  Ms. Hensley  advised                 
  that the  department is neutral  on the amendment.   Senator                 
  Rieger  OBJECTED  to the  conforming  amendment.   He voiced                 
  support for maintaining the status quo but said there should                 
  be  a credit for renewal  by mail rather  than a penalty for                 
  going to the  DMV in person.  He proposed an alternative way                 
  to make the  bill revenue neutral by raising the  $10 in the                 
  original base  fee and eliminating  the $10 surcharge.   Ms.                 
  Hensley noted that  the department  has regulations for  the                 
  waiver program  under provisions of  good cause. Co-chairman                 
  Halford called for a show of hands.  Amendment No. 2  FAILED                 
  on a vote of 3 to 2 with 1 abstention.                                       
                                                                               
  Senator Rieger MOVED  to adopt status quo  language relating                 
  to  the waiver  at page  2, lines  9, 10,  11, and 12.   Co-                 
  chairman Halford called  for a  show of hands.   The  motion                 
  FAILED on a vote of 1-4.                                                     
                                                                               
  Senator Donley MOVED to  rescind action in failing  to adopt                 
  amendment no 2.   With no debate, the committee voted 4 to 1                 
  with 1 abstention to rescind its  action on amendment no. 2.                 
  Senator  Donley then MOVED for  adoption of amendment no. 2.                 
  Co-chairman Halford called  for a show of  hands.  Amendment                 
  no. 2 was ADOPTED on a vote of 4 to 2.  Senator Sharp  MOVED                 
  for passage of CSSB 28 (FIN) with individual recommendations                 
  and attached fiscal notes.   Senator Rieger OBJECTED.   On a                 
  vote of 5 to 1, CSSB 28 (FIN) was REPORTED OUT  of committee                 
  with a revised  $58.8 fiscal  note from the  Dept of  Public                 
  Safety  and a  $250.0  note from  the Dept  of Environmental                 
  Conservation.     Senators  Donley  and  Sharp   signed  the                 
  committee  report  with  a "do  pass"  recommendation.   Co-                 
  chairman Halford and Senators  Phillips, Rieger, and Zharoff                 
  signed "no recommendation."                                                  
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 7:20 p.m.                         
                                                                               

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