Legislature(2005 - 2006)HOUSE FINANCE 519
03/31/2005 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB75 | |
| HB178 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | HB 75 | ||
| = | HB 178 | ||
HOUSE FINANCE COMMITTEE
March 31, 2005
9:13 a.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 9:13:18 AM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Eric Croft
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Reggie Joule
Representative Mike Kelly
Representative Bruce Weyhrauch
MEMBERS ABSENT
Representative Carl Moses
ALSO PRESENT
Sarah Gilbertson, Legislative Liaison, Department of Fish
and Game; Konrad Jackson, Staff, Representative Kurt Olson;
Duane Bannock, Director, Division of Motor Vehicles,
Department of Administration; George Gaguzis, Administrative
Manager, Division of Motor Vehicles
PRESENT VIA TELECONFERENCE
Kevin Saxby, Assistant Attorney General, Natural Resources
Section, Anchorage
SUMMARY
HB 75 "An Act relating to promoting and preserving sport
hunting in the state."
CSHB 75 (FIN) was REPORTED out of Committee with a
"do pass" recommendation and with a zero note # 1
by the Alaska Department of Fish and Game.
HB 178 "An Act relating to special motor vehicle
registration plates; and providing for an
effective date."
HB 178 was heard and HELD in Committee for further
consideration.
9:13:33 AM
HOUSE BILL NO. 75
"An Act relating to promoting and preserving sport
hunting in the state."
SARAH GILBERTSON, LEGISLATIVE LIAISON, ALASKA DEPARTMENT OF
FISH AND GAME, related that the new CS, Version Y,
encompasses all of the changes requested by the Alaska
Department of Fish and Game and solidifies the department's
authority.
Vice-Chair Stoltze inquired if the bill's purpose is to
remove ambiguity about the right to fish and hunt. Ms.
Gilbertson replied that is her understanding.
9:16:38 AM
KEVIN SAXBY, ASSISTANT ATTORNEY GENERAL, NATURAL RESOURCES
SECTION, ANCHORAGE, (via teleconference) in response to a
question by Representative Croft, replied that the bill adds
to existing authority and does not establish a priority of
one activity over another.
Co-Chair Meyer closed public testimony.
Representative Foster MOVED to report CS HB 75 (FIN) out of
Committee with individual recommendations and the
accompanying zero fiscal note. There being NO OBJECTION, it
was so ordered.
CSHB 75 (FIN) was REPORTED out of Committee with a "do pass"
recommendation and with a zero note # 1 by the Alaska
Department of Fish and Game.
HOUSE BILL NO. 178
"An Act relating to special motor vehicle registration
plates; and providing for an effective date."
9:18:53 AM
KONRAD JACKSON, STAFF, REPRESENTATIVE KURT OLSON, explained
that through this bill all license plates, including
"vanity" plates, would be made available for use on all
motor vehicles. He reported that the bill would bring funds
into the DMV.
Representative Foster asked if some type of evidence is
required from Veterans with Purple Hearts. Mr. Jackson
replied yes.
Co-Chair Meyer asked for clarification of the $5,000 amount
under operating and under capital expenditures in the fiscal
note. Mr. Jackson replied that capital expenditures would
be for additional plates produced. Co-Chair Meyer inquired
about FY 06 receipts for supported services.
9:22:49 AM
DUANE BANNOCK, DIRECTOR, DIVISION OF MOTOR VEHICLES,
DEPARTMENT OF ADMINISTRATION, spoke to Co-Chair Meyer's
question. He explained "vanity" plates and the rules for
usage of the plates. He noted that the bill standardizes
the language and correctly notes that some plates are
specific to people, but not specific to style or type of
automobile. The bill attempts to expand the use of
personalized license plates. The newest plate is the
commemorative veteran's plate.
Vice-Chair Stoltze spoke of problems about limited notice of
new plates and lack of communication about the small number
of some plates.
Mr. Bannock held up a plate, RUNDMV, and explained that the
background is not important; the emblems are, for the
purposes of identification by law enforcement.
9:28:09 AM
Co-Chair Meyer asked for further clarification of the fiscal
note. Mr. Bannock explained that in FY 06 there is a $5,000
contractual charge. It is a one-time fee previously used to
block certain types of vehicle registration. The capital
expenditure is the expected incurred cost of plates to be
sold. The change in the revenues line represents the price
intended for collection for the sale of the additional
plates. Co-Chair Meyer asked what the actual net to DMV is.
Mr. Bannock replied that it is $10,000 the first year, and
it is projected that an additional $45,000 will be collected
in both the first and second years. He added that this is
one step in a marketing scheme to develop greater usage of
personalized license plates.
Representative Weyhrauch referred to Section 2 and inquired
why more than six letters are not allowed. Mr. Bannock
replied that the mainframe system is outdated and won't
allow for that possibility.
Representative Weyhrauch inquired how much the fee for a
personalized plate is. Mr. Bannock replied that under
subsection (c) special request plates, it is $30 per plate.
Representative Weyhrauch asked if it is a one-time fee. Mr.
Bannock related that it is because that's the way the law
reads. He clarified that the commemorating veteran's plate
has a biennial fee. Representative Weyhrauch asked if the
only special fee is under section (w) of the bill. Mr.
Bannock replied that is correct. Representative Weyhrauch
asked if there was a legislative reason for requiring that
specific portion of the statute. Mr. Bannock referred to
section (16), and explained that cost of issuing special
request plates may be appropriated by the legislature for
the support of programs benefiting Alaskan veterans.
Representative Weyhrauch summarized that all other special
requests plates, such as kid plates, are only charged once.
Representative Weyhrauch referred to section 13 and asked
when the last time the legislature addressed increasing
these fees. Mr. Bannock replied that in FY 04, both
commercial and non-commercial registration fees were
addressed and adjusted upwards. This would result in an
increase in revenue of about $12 million per year.
9:36:22 AM
Co-Chair Meyer requested clarification on veteran's plates.
Mr. Bannock replied that the intent was to create a
fundraising mechanism for veterans. One plate is for those
who have served; one is to support veterans. Co-Chair Meyer
asked how the money gets to the veterans. Mr. Bannock
explained that DMV collects the money, accounts for it
separately, and reports it to the state's general fund as
specific money raised from the plate.
Vice-Chair Stoltze asked if there is regulation in place,
which would prevent inappropriate plates. Mr. Bannock
replied yes. He explained it is a two-part process, yet
some bad plates are missed.
Representative Joule asked if the fees collected that go to
the general fund become a dedicated fund. Mr. Bannock
deferred to Mr. Gaguzis.
9:40:28 AM
GEORGE GAGUZIS, ADMINISTRATIVE MANAGER, DIVISION OF MOTOR
VEHICLES, explained how the funds go to the general fund and
are appropriated. He explained that veterans' programs are
governed by DMVA. Representative Joule asked for an
example. Mr. Gaguzis gave an example of grant money used
for a monument.
Representative Weyhrauch asked why other programs don't have
the same reoccurring fee. Mr. Gaguzis explained that SB
246, the Veteran Commemorative Plate Bill, set it up this
way. Other organizations are hoping to market plates as
fundraisers.
9:45:16 AM
Representative Joule asked Mr. Bannock to show the rest of
his plates. Mr. Bannock displayed a variety of personalized
license plates.
Vice-Chair Stoltze acknowledged Mr. Gaguzis's contributions
to veterans' activities.
9:54:33 AM
Representative Joule asked if the plates reflect headlights.
Mr. Bannock said the goal is to have reflective paint on
every plate. He held up an example of a flat plate and
noted that embossed plates are easier to read.
Representative Hawker voiced his appreciation for the
information.
9:58:25 AM
Representative Holm MOVED to ADOPT Conceptual Amendment 1,
on page 6, line 1, remove the charge for recipients of the
Purple Heart. He noted that on line 3 on page 7, prisoners
of war pay no fee. He pointed out that there are 519
recipients of Purple Hearts, which would equal $15,700 in
lost revenue.
Co-Chair Meyer OBJECTED for discussion purposes.
Mr. Bannock projected that based on estimates of 50 new
Purple Hearts recipients, the decrease in revenue would be
$1,500.
Representative Holm commended Mr. Bannock and DMV. He
emphasized limiting charges to Purple Heart recipients.
Co-Chair Meyer agreed with Representative Holm. He noted
that none of the money that would have been collected from
the fee from Purple Heart plates goes to veterans. Mr.
Bannock said that is correct.
Co-Chair Meyer WITHDREW his OBJECTION.
Representative Weyhrauch suggested that like "1 percent for
the arts" this idea might be used to raise money to replace
those fees lost by the removal of the Purple Heart plates
category.
Co-Chair Meyer asked if Representative Weyhrauch's intent is
to make up the money lost by Conceptual Amendment 1.
Representative Weyhrauch noted that it is an option.
Representative Kelly commented about loss of revenue from a
money making venture.
10:03:27 AM
Co-Chair Meyer voiced support for the amendment. He
suggested that the committee deal with money-replacing
issues at another time. Mr. Bannock agreed and added that
the bill is not about funding, but breaking down barriers
concerning usage of the plates
Co-Chair Meyer asked if Mr. Bannock objected to Conceptual
Amendment 1. He said DMV supports the amendment. He added
that the plates cost $5.25 each and the decrease in revenue
is not an issue.
10:06:50 AM
Representative Weyhrauch asked if prisoners make these
plates. Mr. Bannock said, no, a firm in Portland, Oregon
does. Representative Weyhrauch asked for the sponsor's
opinion of the amendment.
Mr. Jackson opined that the sponsor would have no problem
with the amendment.
Co-Chair Meyer REMOVED his OBJECTION to adopt Conceptual
Amendment 1. There being NO OBJECTION, it was so ordered.
Co-Chair Meyer suggested that Representative Weyhrauch get
together with the sponsor to discuss his ideas.
10:08:49 AM
Representative Weyhrauch explained a potential amendment to
add another special request plate to make up for the loss of
funds due to Conceptual Amendment 1. Mr. Jackson replied
that he is not opposed to that idea. Mr. Bannock also said
he is not opposed to the idea.
Representative Joule asked for the amount specialty plates
would raise every two years. Mr. Bannock said he could get
those figures and that projections could be worked out.
Mr. Jackson agreed that the sponsor would prefer that the
bill be held until Conceptual Amendment 2 is made.
HB 178 was heard and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 10:14 AM
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