Legislature(2007 - 2008)HOUSE FINANCE 519
02/22/2007 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB75 | |
| HB111 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 75 | TELECONFERENCED | |
| + | HB 111 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 22, 2007
1:46 P.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:46:43 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Richard Foster
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Mary Nelson
Representative Bill Thomas Jr.
MEMBERS ABSENT
None
ALSO PRESENT
Representative Jay Ramras; Jane Pierson, Staff,
Representative Jay Ramras; Rick Urion, Director, Division of
Occupational Licensing, Department of Commerce, Community &
Economic Development; Chris Wyatt, Administrative Manager,
Division of Corporations, Businesses and Professional
Licensing, Department of Commerce, Community and Economic
Development; Denny DeWitt, Alaska State Director, National
Federation of Independent Business
PRESENT VIA TELECONFERENCE
Duane Bannock, Director, Division of Motor Vehicles,
Department of Administration, Anchorage
SUMMARY
HB 75 An Act relating to driver's licenses and alcohol
awareness testing.
CS HB 75 (STA) was reported out of Committee with
a "do pass" recommendation and with a new zero
note by the Department of Health and Social
Services and fiscal note #1 by the Department of
Administration.
HB 111 An Act decreasing the fee for a business license;
and providing for an effective date.
HB 111 was HEARD and HELD in Committee for further
consideration.
1:47:46 PM
HOUSE BILL NO. 75
An Act relating to driver's licenses and alcohol
awareness testing.
REPRESENTATIVE JAY RAMRAS, SPONSOR, stated that HB 75 would
continue his efforts to improve alcohol management and
awareness in Alaska. The bill stipulates that all drivers'
licenses issued to a person under 21 years old would expire
st
ninety-days after their 21 birthday. HB 75 would further
require that a person turning 21 must take a test regarding
alcohol safety awareness and laws related to drinking and
driving prior to receiving their adult Alaska driver's
license.
Representative Ramras explained that once the bill takes
effect, all drivers' licenses of Alaskans, 21 years old
would be adult licenses. The alcohol awareness test would
serve to relate the privileges of driving to the
responsibility of consumption of alcohol. The test would be
designed by the Division of Motor Vehicles (DMV). It is the
sponsor's intent to have Mother's Against Drunk Driving
(MADD) participates in the process of the test design.
HB 75 will help cut down on minors consuming alcohol, by
creating a bright-line between adult and minor driver
licenses as the license issued to a person over 21 would be
an adult license and look different than the one issued to a
minor.
Representative Ramras referenced the sheet distributed by
the DMV, indicating the .08 level which qualifies that
person as legally drunk for a Driving Under the Influence
(DUI). (Copy on File). The legislation attempts to
identify the youth-at-risk group, emphasizing the harm that
these young people do to their own life as well as others.
He pointed out that many businesses will not hire any person
with a DUI. Representative Ramras added that there are
young people committing a crime, sometimes a matter of
ignorance.
Representative Ramras summarized that HB 75 is good public
policy making the general knowledge test mandatory to minors
getting their renewed license. The test will consist of
eight questions on driving and eight regarding alcohol and
insurance.
1:59:13 PM
Representative Joule commented that in many parts of the
State, access to a DMV is difficult and worried about the
90-day restriction. Representative Ramras explained that
there has to be law, applying to both urban and rural areas.
He understood the concerns and offered to discuss them
further with legislators and Mr. Bannock from the DMV.
2:00:58 PM
DUANE BANNOCK, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
DIVISION OF MOTOR VEHICLES, DEPARTMENT OF ADMINISTRATION,
ANCHORAGE, pointed out that there are many customers who
have off-system licenses. With an off-system license, the
customer does not take a driving test nor is their license
printed with a photo on it and recommended that the off-
system license not be included in the bill. Those people do
not take a driving skills test, only a knowledge test. The
DMV is prepared that the proposed law will not affect that
group; the key words are "off-system license".
Representative Joule did not want to see anyone in the State
sidestep the responsibility for learning the restrictions
that happen when an individual comes of age. He understood
that eventually they would have to take the test. It would
be more effective if all citizens received the benefit of
such education, addressing the responsibility and privilege
of having a driver's license.
Mr. Bannock agreed. The DMV has provided testimony in other
Committees regarding the benefit of the provision outlined
in Section 1-creating the distance knowledge test. He noted
copies of that test included in member's file. (Copy on
File).
2:05:14 PM
Representative Hawker referenced Alaska statute, addressing
the concern & wondered why the responsibility would be
duplicated: AS 28.15.081:
"Examination of applicants which includes a test of the
applicant's knowledge of the effects of drugs and
alcohol and the dangers of driving under the
influence."
Representative Ramras responded that the test is not
administered at 16 but rather at 14 years old. He believed
that the maturity & poise of someone at the age of 16 is
quite different than that at 21. The judgment of the
younger adult population is not always able to manage well,
the responsibility of alcohol, placing others at risk. He
believed that all communities would benefit at a moderate
cost.
2:09:49 PM
Representative Hawker asked why the State does not require
the test at each renewal date. Representative Ramras agreed
that would be a great benefit; however, he did not believe
he could get a bill like that moved through the Committee
process. Initially, the bill was drafted to testing all
adults, but some suggested that was too intrusive.
Representative Hawker noted concern when drawing arbitrary
age lines. Representative Ramras stated it was not
arbitrary, as 21 years old is recognized in statute as the
legal age to consume alcohol.
2:11:52 PM
Co Chair Chenault commented on the license age extension
dates indicated on licenses and the confusion transpiring
from that notation. He supported the 90-day period. He
inquired the percentage of DUI's at 16 versus 21 years old.
JANE PIERSON, STAFF, REPRESENTATIVE JAY RAMRAS, responded
that those statistics are not available at this time.
Co Chair Chenault voiced concern with the testing. He
agreed with Representative Hawker that the statutes are
already in place. He supported the concept testing at every
renewal age.
2:15:07 PM
Representative Thomas asked about inclusion of military
exemptions. Ms. Pierson explained that those exemptions
were indicated in the Alaska Administrative Code (AAC),
title 2.90.430, which provides 90-days when returning from
active duty.
Representative Thomas commented on license expiration
related to loosing the Permanent Fund check. He worried
about "legislating morality". He supported driver's
education classes in high school. Representative Ramras
responded that the bill does not have anything to do with
legislating morality but rather educating young people about
the perils of consuming alcohol & driving at age 21.
2:18:32 PM
Representative Gara agreed with the concept, but he did not
like the way it was written. He thought that education was
the important part. Representative Ramras explained that
alcohol awareness is one of the two major components of the
bill.
Representative Gara stated that the test would not
accomplish anything unless the education portion was there.
He suggested that an instructional video, showing what
driving while impaired, looks like. Representative Ramras
disagreed with putting such a burden on the Division. He
reiterated that providing a publication & having a test
would be best. He hoped that the test would consist of a
broader knowledge.
2:21:09 PM
Representative Gara asked how the questions would be worded
on the written test. Mr. Bannock referenced Page 2,
Question 4, on the "knowledge test", as submitted by the
Division. (Copy on File).
Representative Crawford stated that the bill addresses
prevention, which he applauds. He noted that it will
provide one more tool to save lives, indicating he had co-
sponsored the bill.
Representative Gara referenced the test questions, offering
his own experience taking the driving written test. He
noted that he did not remember any of the test questions but
did remember the video he watched showing the consequences
of a drunk-driving accident. He believed that if the State
is to have a serious impact, a video viewing must be
required. Representative Ramras responded that if that were
the determination made by the DMV, he would abide by it;
however, during his conversation with Director Bannock, it
was agreed to be accomplished through the publicized test.
The general knowledge test has been designed so that a 14
year old could pass it. The proposed test will be designed
for a 21 year old and specific in the knowledge tested. He
did not agree with the comments of Representative Gara.
Representative Gara asked if it would be possible for DMV
offices to offer a video showing the consequences of drunk
driving. Mr. Bannock replied anything is possible; however,
pointed out that most DMV offices are very small and that
they are not in the business of training and educating
people.
Mr. Bannock added there had been excellent commentary in
previous committee provided by Representative Roses - a
school teacher, about how important a driver's license is to
today's youth. Few school districts teach drivers
education. He submitted that a proposed test could be more
focused and specific to the age at which the law allows
legal drinking.
2:28:37 PM
Representative Gara worried what education would be required
if it was not submitted by the State.
Co-Chair Meyer recommended that a certain amount of the
education should come from parents, MADD and other groups
interested, the DMV should not be totally responsible for
education.
Representative Nelson asked the provisions for out-of-state
college students. Representative Ramras explained that it
would be the same provision allowed for the military. When
they return home, they have 90-days to take care of that
business. Mr. Bannock added that those are the regulations
for both out of out-of-State college students and the
military, which is a courtesy provision extension provision
and can be up to one year. Sometimes, it is needed when a
person is out of State on vacation.
2:32:42 PM
Representative Hawker addressed the education aspect and how
it could best be delivered. He summarized previous
discussion comments, suggested that since the State was
imposing a mandate, it should be through the school system.
Representative Ramras emphasized that there are many young
people struggling in how to handle alcohol. He believed
that the correct place to disseminate the information would
be the DMV. He stressed his interest in alcohol awareness.
The bill provides an opportunity to message-out to the 21
year old, to marry the privilege of driving with the
responsibility drinking. He worried about the number of
young people that get DWI's.
2:40:20 PM
In response to Co-Chair Meyer, Mr. Bannock addressed the
fiscal note request in the amount of $5 thousand dollars,
which would be used for proprietary software. Co-Chair
Meyer agreed that the bill will do more good than harm.
2:41:53 PM
Representative Gara advised that he would introduce an
amendment to the bill on the House floor. He inquired if
the DMV offices have the capability for someone to watch a
video. Mr. Bannock said no. The DMV offices usually are not
physically bigger than they have to be and that the same
standards would have to be imposed on all the smaller
offices.
2:44:41 PM
Representative Foster MOVED to REPRT CS HB 75 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 75 (STA) was reported out of Committee with a "do
pass" recommendation and with a new zero note by the
Department of Health and Social Services and fiscal note #1
by the Department of Administration.
2:45:41 PM
HOUSE BILL NO. 111
An Act decreasing the fee for a business license; and
providing for an effective date.
RICK URION, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING,
DEPARTMENT OF COMMERCE, COMMUNITY & ECONOMIC DEVELOPMENT,
spoke in support of the legislation. HB 111 reduces the
increased license fee of $100 to $25, in an attempt to
attract and retain business. The business license was
created in 1939 as a source of revenue and is currently used
as a means to determine local sales tax. The legislation
would return business license issuance too biannually.
Mr. Urion explained that the fiscal note reflects that it
would take two years to return to the biannual license. He
explained the transitional period and costs associated with
the return to a $25 biannual license. The penalty in
present law is a maximum fine of $2,000 dollars and 6 months
in jail, which has never been implemented. The legislation
reduces that to a $100 fine. He spoke in support of
increasing the fine to $300.
2:50:54 PM
Representative Foster questioned if consideration had been
made to a graduated cost for business licenses reflecting
differences in revenue. Mr. Urion advised that it would be
difficult to manage a graduated program, requiring
examination of tax returns and limit Internet transactions.
2:53:19 PM
Representative Gara reiterated his concerns regarding
discrepancy in business revenues and questioned if such a
program could be implemented. Mr. Urion noted that the
Division serves at the direction of the Legislature;
however, emphasized the need for a simplified operation.
Representative Gara referenced individuals that occasionally
sell handcrafted goods such as beading, and how the
licensing determination is made by the Division. Mr. Urion
clarified that any business making a profit is required to
have a business license.
2:56:12 PM
Representative Gara pointed out that AS 43.70.105 indicates
that licenses are not required unless the person is
"regularly engaged in furnishing goods or services". Mr.
Urion explained that was part of the reason that Governor
Palin decided to decrease the license price.
2:58:26 PM
Vice Chair Stoltze understood that the Governor's intent was
simplicity for the operation of business.
3:00:13 PM
In response to Representative Kelly, Mr. Urion explained
that it would be returned to a two year $50 dollar license.
3:01:03 PM
Co Chair Chenault asked if the $25 fee could cover the costs
for running the Division. Mr. Urion said that it was
sufficient.
Co-Chair Chenault asked if the change to $300 would need to
be accomplished through an amendment. Mr. Urion thought
that would provide more leeway for the investigators and
would rarely be used.
Co-Chair Chenault mentioned individuals with multiple
businesses, suggesting they have a one-fee combination
license.
3:03:03 PM
Representative Joule referenced the federal perception that
Alaska needs to have more "skin in the game" regarding
revenue participation, while seeking federal dollars. He
cautioned reduction of revenue when federal contributions
are also being lowered.
3:05:21 PM
Co-Chair Meyer said the bill would be HELD in Committee as
the legislation reduces State revenue at a time the
Administration is attempting to reduce the budget. He
submitted that it be discussed as a part of the entire
revenue package.
3:05:55 PM
Representative Thomas agreed with comments of Representative
Joule regarding reduction of State expenditures in areas
such as fish and game, at the same time revenues are
reduced.
3:07:05 PM
Representative Gara suggested that consideration be made
only to reducing fees for small business. He asked about a
graduated fee structure. Mr. Urion explained that the
Division does not have information on what a business might
gross or the actual size.
Representative Kelly asked about the purpose of a business
license. Mr. Urion explained that it was established as a
revenue producer and provides some statistical information
to the local governments.
3:09:13 PM
Representative Foster indicated that he supports less
government and prefers to do away with that tax rather than
having it placed on small business people just trying to get
by.
3:10:39 PM
DENNY DEWITT, ALASKA STATE DIRECTOR, NATIONAL FEDERATION OF
INDEPENDENT BUSINESS, testified in support of the
legislation. He maintained that the fee should support the
administrative activity and not be a revenue source. He
spoke in support of a simple process. He acknowledged the
impact of multiple fees for individuals that have multiple
businesses. He noted that the State is investing the cost
of the activity, but should not subsidize other activities.
The reduction could help businesses with increasing the cost
of operations.
In response to a question by Vice Chair Stoltze, Mr. DeWitt
addressed other taxes paid by municipalities such as sales
tax, business property tax and other fees.
3:14:44 PM
Vice Chair Stoltze pointed out that others (such as the
Mayor of Anchorage) use the information for statistical
values.
3:15:33 PM
Representative Gara reiterated his concern that individuals
selling cupcakes should not need a business license.
PUBLIC TESTIMONY WAS CLOSED.
HB 111 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting was adjourned at 3:17 P.M.
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