Legislature(2021 - 2022)BELTZ 105 (TSBldg)

04/30/2021 01:30 PM Senate LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 76 ABANDONED VEHICLES; PRIVATE PROPERTY TELECONFERENCED
Moved SB 76 Out of Committee
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 17 ENERGY EFFICIENCY & POLICY: PUB. BLDGS TELECONFERENCED
Moved CSSB 17(CRA) Out of Committee
-- Testimony <Invitation Only> --
+ HB 36 MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
**Streamed live on AKL.tv**
           SB 76-ABANDONED VEHICLES; PRIVATE PROPERTY                                                                       
                                                                                                                                
1:43:14 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of SENATE BILL NO.  76 "An Act relating to vehicles                                                               
abandoned on private property."                                                                                                 
                                                                                                                                
1:43:56 PM                                                                                                                    
SENATOR KIEHL, Alaska State  Legislature, Juneau, Alaska, sponsor                                                               
of SB  76, stated  that this legislation  shortens the  time that                                                               
private  property owners  have to  wait before  they are  able to                                                               
begin to  deal with  a vehicle abandoned  on their  property. "In                                                               
essence, someone disposing of a car  they can't sell on land they                                                               
don't  own."  Today the  private  property  owner must  wait  six                                                               
months before they are able  to initiate the prescriptive process                                                               
to get title in order to pay  for the disposal of the vehicle. SB
76 shortens  the initial six  months wait-time to one  month, but                                                               
it  does not  deprive the  last registered  owner of  their legal                                                               
notice   that  includes   certified  return   mail  receipt.   He                                                               
acknowledged  that this  is not  a cure-all  because the  private                                                               
property owner  still must follow  the process to dispose  of the                                                               
vehicle. SB  76 simply provides  the opportunity for  the private                                                               
property  owner  to  deal  with an  abandoned  vehicle  on  their                                                               
property without waiting six months to begin the process.                                                                       
                                                                                                                                
1:46:18 PM                                                                                                                    
CHAIR COSTELLO  informed the members  that she heard the  bill in                                                               
the previous committee of referral and had no questions.                                                                        
                                                                                                                                
1:46:37 PM                                                                                                                    
SENATOR STEVENS asked  if there was a process  for the registered                                                               
owner  to sell  their vehicle  and go  to the  Division of  Motor                                                               
Vehicles (DMV) to  transfer the title. He  acknowledged that this                                                               
did not affect the bill.                                                                                                        
                                                                                                                                
SENATOR KIEHL said yes; if he  were to sell his vehicle, he could                                                               
sign and  return the slip  at the bottom  of the title  to notify                                                               
DMV that he was no longer the owner of the vehicle.                                                                             
                                                                                                                                
SENATOR STEVENS asked if the slip  at the bottom of the title has                                                               
the address of the new owner.                                                                                                   
                                                                                                                                
SENATOR KIEHL replied  there is no requirement for  the seller to                                                               
file the name of the new owner with DMV.                                                                                        
                                                                                                                                
1:47:32 PM                                                                                                                    
SENATOR GRAY-JACKSON offered her  understanding that the property                                                               
owner has  to wait six months  before they are able  to deal with                                                               
the abandoned vehicle.                                                                                                          
                                                                                                                                
SENATOR KIEHL  clarified that  the property  owner must  wait six                                                               
months before  they can  begin the legal  process that  ends with                                                               
being able to deal with the vehicle.                                                                                            
                                                                                                                                
SENATOR  GRAY-JACKSON recounted  that the  bill shortens  the six                                                               
months to 30 days.                                                                                                              
                                                                                                                                
SENATOR KIEHL nodded.                                                                                                           
                                                                                                                                
1:48:15 PM                                                                                                                    
SENATOR  MICCICHE  asked if  the  bill  applies only  to  private                                                               
property or  if it  also shortens  the initial  six months  to 30                                                               
days for vehicles abandoned on municipal and state land.                                                                        
                                                                                                                                
SENATOR KIEHL  replied state and  local governments  generally do                                                               
not use this process because  they have additional authorities to                                                               
deal with vehicles abandoned in their rights-of-way.                                                                            
                                                                                                                                
SENATOR MICCICHE noted that not  all state and municipal property                                                               
is designated  right-of-way. He  asked if  there was  a different                                                               
process for municipalities.                                                                                                     
                                                                                                                                
SENATOR KIEHL  answered yes; sections  of the statutes  relate to                                                               
municipal rights  and the  state has  significant rights  to deal                                                               
with abandoned  vehicles on  state land. He  restated that  SB 76                                                               
only applies to vehicles abandoned on private property.                                                                         
                                                                                                                                
CHAIR COSTELLO requested the sectional analysis.                                                                                
                                                                                                                                
1:49:46 PM                                                                                                                    
CATHY  SCHLINGHEYDE, Staff,  Senator  Jesse  Kiehl, Alaska  State                                                               
Legislature,  Juneau, Alaska,  presented  the sectional  analysis                                                               
for SB 76 that read as follows:                                                                                                 
                                                                                                                                
     Section 1:  A property  owner with a  vehicle abandoned                                                                    
     on his or  her land can currently start  the process to                                                                    
     claim  title  to the  vehicle  after  six months.  This                                                                    
     section reduces the period to 30 days.                                                                                     
                                                                                                                                
      Section 2: The change above only applies to vehicles                                                                      
     abandoned after the effective date of the bill.                                                                            
                                                                                                                                
1:50:28 PM                                                                                                                    
ALEC MESDAG, Vice  President & Director, Alaska  Electric Light &                                                               
Power Company,  Juneau, Alaska, related  that AEL&P and  its land                                                               
holding  company own  a large  amount of  land around  Juneau and                                                               
they  have had  to deal  with  a significant  number of  vehicles                                                               
abandoned on  their property  in recent  years. The  option under                                                               
current law is to leave the  vehicles alone for six months or tow                                                               
them  to a  secure  yard  and hold  them  for  six months  before                                                               
starting  the retitle  process. Eventually  the company  tows the                                                               
vehicles for disposal. He said  SB 76 provides relief by reducing                                                               
the holding time  for these derelict and  abandoned vehicles that                                                               
often are  an environmental  hazard. They  leak fluids  and often                                                               
contain used needles  and other biohazards. He  described the six                                                               
month  holding period  as  too long  and said  SB  76 provides  a                                                               
meaningful improvement. He thanked  the sponsor and the committee                                                               
for its support for SB 76.                                                                                                      
                                                                                                                                
SENATOR STEVENS  commented that  the bill  makes sense.  He asked                                                               
how AEL&P disposes of the vehicles  and if it is at the company's                                                               
expense.                                                                                                                        
                                                                                                                                
MR. MESDAG  confirmed that AEL&P  pays for the disposal.  He said                                                               
recyclers dispose  of standard automobiles  but not  campers with                                                               
holding  tanks. He  recounted that  he hauled  one camper  to the                                                               
dump and paid about $1,400 for  disposal only to see it alongside                                                               
somebody's  house  several  months   later.  He  reiterated  that                                                               
shortening the  initial six-month wait  to 30 days would  be very                                                               
helpful.                                                                                                                        
                                                                                                                                
1:54:09 PM                                                                                                                    
KENNETH DARLING,  Chief Credit Officer, Matanuska  Valley Federal                                                               
Credit  Union,  Palmer, Alaska,  stated  support  for SB  76  and                                                               
offered his view that the  environmental and biohazard discussion                                                               
was enlightening. These derelict  vehicles present more than just                                                               
an  eyesore.  He  advised  that  the  credit  union  disposes  of                                                               
abandoned vehicles  through an auction because  they have salvage                                                               
value. However, the  value of the vehicle depreciates  as it sits                                                               
for six  months so  it would  be helpful  to shorten  the initial                                                               
wait time. It will help  the environmental biohazard and help the                                                               
depreciating asset have more value when it goes to auction.                                                                     
                                                                                                                                
SENATOR STEVENS asked if the  credit union is responsible for the                                                               
vehicle if the vehicle owner cannot be located.                                                                                 
                                                                                                                                
MR.  DARLING answered  that is  correct. As  the lienholder,  the                                                               
credit union is a partial owner of the vehicle.                                                                                 
                                                                                                                                
1:56:06 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on SB 76.                                                                                
                                                                                                                                
1:56:16 PM                                                                                                                    
DIL UHLIN, Maintenance Director,  Kenai Peninsula Borough, Kenai,                                                               
Alaska, said  reducing the time from  six months to 30  days will                                                               
mirror the  municipality's notification timeline. He  said rights                                                               
of way are a little different  but a vehicle in a school district                                                               
parking  lot for  example, would  sit for  30 days  before it  is                                                               
presumed abandoned.  The municipality would then  move forward to                                                               
notification  and  eventual  disposal. He  agreed  with  previous                                                               
testimony that many of the vehicles  left for six months become a                                                               
public safety and environmental biohazard problems.                                                                             
                                                                                                                                
He advised that the Kenai  Peninsula Borough deals with abandoned                                                               
vehicles  weekly  and  he has  experienced  instances  where  the                                                               
vehicle  jeopardized  public  safety   and  others  presented  an                                                               
environmental biohazard. The cost of  disposal for these types of                                                               
vehicles increases as they sit  and deteriorate. He reported that                                                               
the cost  to decontaminate and  dispose of one vehicle  and clean                                                               
up  the  surrounding property  was  over  $30,000. He  reiterated                                                               
support for SB 76.                                                                                                              
                                                                                                                                
SENATOR GRAY-JACKSON thanked him for the testimony.                                                                             
                                                                                                                                
CHAIR COSTELLO asked if the  borough had contemplated holding the                                                               
owner  of the  abandoned  vehicle liable  for  cleanup costs  and                                                               
disposal.                                                                                                                       
                                                                                                                                
MR. UHLIN replied that the  borough has established procedures to                                                               
hold  the last  known  owner  liable but  they  generally do  not                                                               
recover the costs.  However, he can say that  the 30-day timeline                                                               
is  reasonable.  The  borough's experience  is  that  anyone  who                                                               
intends to move their vehicle will  do so in the first week after                                                               
notification.  He imagined  that in  the private  sector a  civil                                                               
suit would be the way to recover costs.                                                                                         
                                                                                                                                
2:00:31 PM                                                                                                                    
CHAIR COSTELLO closed public testimony on SB 76.                                                                                
                                                                                                                                
2:00:37 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:01:17 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
2:01:23 PM                                                                                                                    
SENATOR  STEVENS asked  the sponsor  if the  bill would  apply to                                                               
borough property.                                                                                                               
                                                                                                                                
SENATOR KIEHL  answered no.  SB 76 more  closely aligns  the laws                                                               
for  vehicles  abandoned on  private  property  to the  laws  for                                                               
vehicles abandoned  on public  property. He  noted the  letter of                                                               
support  from the  Alaska Municipal  League and  highlighted that                                                               
giving  private property  owners  additional tools  to deal  with                                                               
these  vehicles more  quickly will  benefit the  entire community                                                               
from a public safety standpoint.                                                                                                
                                                                                                                                
SENATOR MICCICHE  related his experience with  abandoned vehicles                                                               
when he was mayor of a  small town to explain the municipalities'                                                               
interest in the bill. He thanked the sponsor.                                                                                   
                                                                                                                                
2:03:25 PM                                                                                                                    
SENATOR MICCICHE moved  to report SB 76,  work order 32-LS0005\A,                                                               
from committee with individual  recommendations and attached zero                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR COSTELLO found no objection so  SB 76 was reported from the                                                               
Senate Labor and Commerce Standing Committee.                                                                                   

Document Name Date/Time Subjects
SB 76 Letters of Support Received by 2021.04.20.pdf SL&C 4/30/2021 1:30:00 PM
SB 76