Legislature(1997 - 1998)

04/23/1997 01:10 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
            HOUSE TRANSPORTATION STANDING COMMITTEE                            
                         April 23, 1997                                        
                           1:10 p.m.                                           
                                                                               
                                                                               
 MEMBERS PRESENT                                                               
                                                                               
 Representative Bill Williams, Chairman                                        
 Representative Beverly Masek, Vice Chairman                                   
 Representative John Cowdery                                                   
 Representative Bill Hudson                                                    
 Representative Jerry Sanders                                                  
 Representative Kim Elton                                                      
 Representative Al Kookesh                                                     
                                                                               
 MEMBERS ABSENT                                                                
                                                                               
 All members present                                                           
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 *HOUSE BILL NO. 246                                                           
 "An Act naming the George W. Palmer Memorial Bridge."                         
                                                                               
      - MOVED HB 246 OUT OF COMMITTEE                                          
                                                                               
 *HOUSE BILL NO. 222                                                           
 "An Act relating to abandoned, wrecked, or junk vehicles."                    
                                                                               
      -MOVED CSHB 222(TRA) OUT OF COMMITTEE                                    
                                                                               
 *HOUSE BILL NO. 175                                                           
 "An Act relating to issuance of motor vehicle registrations and               
 titles, and to licenses and permits to operate a motor vehicle."              
                                                                               
      -HEARD AND HELD                                                          
                                                                               
 (* First public hearing)                                                      
                                                                               
 PREVIOUS ACTION                                                               
                                                                               
 BILL:  HB 246                                                               
 SHORT TITLE: GEORGE W. PALMER MEMORIAL BRIDGE                                 
 SPONSOR(S): REPRESENTATIVE(S) OGAN, Kohring                                   
                                                                               
 JRN-DATE     JRN-PG             ACTION                                        
 04/10/97      1061    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 04/10/97      1061    (H)   TRANSPORTATION                                    
 04/23/97              (H)   TRA AT  1:00 PM CAPITOL 17                        
                                                                               
 BILL:  HB 222                                                               
 SHORT TITLE: ABANDONED,WRECKED,OR JUNK VEHICLES                               
 SPONSOR(S): REPRESENTATIVE(S) ROKEBERG                                        
                                                                               
 JRN-DATE     JRN-PG             ACTION                                        
 04/01/97       900    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 04/01/97       900    (H)   TRANSPORTATION, L&C                               
 04/23/97              (H)   TRA AT  1:00 PM CAPITOL 17                        
                                                                               
 BILL:  HB 175                                                               
 SHORT TITLE: PRIVATE MOTOR VEHICLE LICENSING/TESTING                          
 SPONSOR(S): REPRESENTATIVE(S) VEZEY                                           
                                                                               
 JRN-DATE     JRN-PG             ACTION                                        
 03/06/97       557    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/06/97       557    (H)   TRANSPORTATION, JUDICIARY                         
 04/23/97              (H)   TRA AT  1:00 PM CAPITOL 17                        
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 SANDRA YOCOM, Researcher to Representative Scott Ogan                         
 Alaska State Legislature                                                      
 Capitol Building, Room 128                                                    
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 465-3878                                                    
 POSITION STATEMENT:  Provided sponsor testimony on HB 246.                    
                                                                               
 BARBARA LACHER, Mayor                                                         
 City of Matanuska                                                             
 350 East Dahlia Avenue                                                        
 Palmer, Alaska  99645                                                         
 Telephone:  (907) 745-4801                                                    
 POSITION STATEMENT:  Testified in favor of 246.                               
                                                                               
 JUSTIN KAUCIC                                                                 
 HC01 Box 6031                                                                 
 Palmer, Alaska  99645                                                         
 Telephone:  (907) 745-2554                                                    
 POSITION STATEMENT:  Testified in favor of HB 246.                            
                                                                               
 CHUCK KAUCIC                                                                  
 HC01 Box 6031                                                                 
 Palmer, Alaska  99645                                                         
 Telephone:  (907) 745-2554                                                    
 POSITION STATEMENT:  Testified in favor of HB 246.                            
                                                                               
 REPRESENTATIVE NORMAN ROKEBERG                                                
 Alaska State Legislature                                                      
 Capitol Building, Room 24                                                     
 Juneau, Alaska  99801                                                         
 Telephone:  (907) 465-4954                                                    
 POSITION STATEMENT:  Provided sponsor testimony on HB 222.                    
                                                                               
 JUANITA HENSLEY, Chief                                                        
 Driver Services                                                               
 Division of Motor Vehicles                                                    
 P.O. Box 20020                                                                
 Juneau, Alaska  99811                                                         
 Telephone:  (907) 465-4361                                                    
 POSITION STATEMENT:  Testified on HB 222 and HB 175.                          
                                                                               
 DAN LOWDEN, Lieutenant                                                        
 Alaska State Troopers                                                         
 5700 East Tudor Road                                                          
 Anchorage, Alaska  99507                                                      
 Telephone:  (907) 269-5912                                                    
 POSITION STATEMENT:  Testified on HB 222.                                     
                                                                               
 EVERETT MABRY, Manager                                                        
 Street Maintenance                                                            
 Municipality of Anchorage                                                     
 3500 East Tudor Road                                                          
 Anchorage, Alaska  99801                                                      
 Telephone:  (907) 343-8249                                                    
 POSITION STATEMENT:  Testified in favor of HB 222.                            
                                                                               
 SHEILA LOWELL                                                                 
 Alaska Tow Truck Association                                                  
 220 East International Road                                                   
 Anchorage, Alaska  99518                                                      
 Telephone:  (907) 344-5540                                                    
 POSITION STATEMENT:  Testified on HB 222.                                     
                                                                               
 STEVE SCHWEPPEE, Attorney                                                     
 City of Ketchikan                                                             
 334 Front Street                                                              
 Ketchikan, Alaska  99901                                                      
 Telephone:  (907) 228-5611                                                    
 POSITION STATEMENT:  Testified on HB 222.                                     
                                                                               
 ACTION NARRATIVE                                                              
                                                                               
 TAPE 97-23, SIDE A                                                            
 Number 001                                                                    
                                                                               
 CHAIRMAN BILL WILLIAMS called the House Transportation Standing               
 Committee to order at 1:10 p.m.  Members present at the call to               
 order were Representatives Williams, Masek, Cowdery and Hudson.               
 Representative Elton arrived at 1:12 p.m., Representative Sanders             
 arrived at 1:15 p.m. and Representative Kookesh arrived at 1:22.              
                                                                               
 HB 246 - GEORGE W. PALMER MEMORIAL BRIDGE                                   
                                                                               
 Number 056                                                                    
 CHAIRMAN WILLIAMS announced that the committee would hear HB 246,             
 "An Act naming the George W. Palmer Memorial Bridge."                         
                                                                               
 Number 104                                                                    
                                                                               
 SANDRA YOCOM, Researcher to Representative Scott Ogan, stated that            
 there is a new bridge construction occurring across the Matanuska             
 River, outside of Palmer.  Justin Kaucic, with Boy Scott Troop 325,           
 of Palmer is spearheading the effort to name the bridge the George            
 W. Palmer Memorial Bridge.  She stated that the city of Palmer and            
 the Matanuska-Susitna Borough are in favor of this naming of the              
 bridge.  She stated that George W. Palmer arrived in Alaska in                
 1875, operating a trading post on the Matanuska River Bridge.  She            
 stated that he used tin-lined boxes to protect the supplies from              
 bugs and weather along the river.  He is remembered as a                      
 resourceful and industrious Alaskan pioneer.  He died in 1935 and             
 in 1951 when the city incorporated, it chose the name of Palmer to            
 reflect his independence and industriousness.  The Matanuska-                 
 Susitna Valley government and residents seek to extend this                   
 remembrance to include the new bridge being built near his old                
 trading post site.                                                            
                                                                               
 Number 348                                                                    
                                                                               
 BARBARA LACHER, Mayor, City of Matanuska, testified via                       
 teleconference from Palmer, that the Matanuska Borough is                     
 unanimously in support of naming the bridge, the George W. Palmer             
 Memorial Bridge.                                                              
                                                                               
 Number 495                                                                    
                                                                               
 JUSTIN KAUCIC, testified via teleconference from Matsu, that the              
 George W. Palmer Memorial Bridge is a very good name for this                 
 bridge.                                                                       
                                                                               
 CHAIRMAN WILLIAMS asked how old he is and how he came up with the             
 name.                                                                         
                                                                               
 MR. KAUCIC replied that he is eleven years old and he came up with            
 the name because George W. Palmer operated the trading post where             
 the bridge site is.                                                           
                                                                               
 Number 542                                                                    
                                                                               
 REPRESENTATIVE BEVERLY MASEK thanked Mr. Kaucic for all his effort            
 and involvement.                                                              
                                                                               
 REPRESENTATIVE BILL HUDSON thanked Mr. Kaucic and stated that he              
 appreciated young people taking on civic responsibilities.                    
                                                                               
 Number 644                                                                    
                                                                               
 CHUCK KAUCIC, testified via teleconferce from Matsu, that this is             
 a wonderful opportunity to interpret Alaskan history.                         
                                                                               
 Number 728                                                                    
                                                                               
 REPRESENTATIVE MASEK made a motion to move HB 246, with individual            
 recommendations and attached zero fiscal note.                                
                                                                               
 Number 761                                                                    
                                                                               
 CHAIRMAN WILLIAMS asked if there were any objections, hearing none            
 HB 246 was moved out of the House Transportation Standing                     
 Committee.                                                                    
                                                                               
 HB 222  - ABANDONED,WRECKED,OR JUNK VEHICLES                                
                                                                               
 Number 783                                                                    
                                                                               
 CHAIRMAN WILLIAMS announced the next order of business to be HB
 222, "An Act relating to abandoned, wrecked, or junk vehicles", and           
 asked Representative Rokeberg, sponsor, to present the bill.                  
                                                                               
 REPRESENTATIVE NORMAN ROKEBERG stated that the HB 222 would give              
 local governments more tools to work with when impounding and                 
 disposing of wrecked or junk vehicles.  The number of vehicles                
 abandoned on the streets is a problem for local governments.  He              
 stated that these vehicles, besides being an eyesore, are a public            
 safety and health hazard to the citizens of the state of Alaska.              
 Usually these vehicles are not properly registered and tracing the            
 owners can be difficult.  He stated that it is very expensive for             
 the government to remove these junk cars.  The municipality of                
 Anchorage has to recover over 1,000 vehicles, costing about                   
 $126,000.  He continues that the bill provides for an expedited               
 removal of junk vehicles from the streets and right-of-ways.  The             
 bill will reduce the holding time and decrease the processing time            
 for junk vehicles, as well as reduce the number of junk vehicles              
 which are sold through auction and often re-deposited on the                  
 streets and right-of-ways.  He distributed a letter from the Alaska           
 Municiple League in support of this legislation.  He stated that              
 recommendations have been made by the city attorney in Ketchikan              
 which generated amendments for the committees consideration.                  
                                                                               
 REPRESENTATIVE ROKEBERG stated that Amendment 1 adds Section 6 to             
 the bill which would allow local municipalities to generate their             
 own ordinance for the disposal of the junk vehicles, removing                 
 requirements under existing state statutes, specifically AS                   
 28.05.131.  Which would remove the certified mailing notification             
 which is a detriment to an expeditious removal of these vehicles              
 that are a threat to public safety.                                           
                                                                               
 REPRESENTATIVE ROKEBERG stated that Amendment 2 addressed the                 
 situation of "street mechanics" working on a car using the public             
 right-of-way for a mechanic shop.  He stated that at night they               
 push the vehicle a couple of feet to avoid the police enforcement.            
 Therefore, the words "reasonably appears to have" is added to over            
 come that situation.                                                          
                                                                               
 REPRESENTATIVE ROKEBERG stated that Amendment 3 deletes "registered           
 and" on page 3, line 12.  He stated that by requiring cars to be              
 registered and titled for public auction, would impede their                  
 ability to sell.                                                              
                                                                               
 Number 1288                                                                   
                                                                               
 REPRESENTATIVE HUDSON referred to Amendment 2,  page 2, line 5 and            
 stated that following the word vehicle, the word "that" needs to be           
 inserted so it will read correctly.                                           
                                                                               
 Number 1352                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG stated that he had no objection.                      
                                                                               
 Number 1376                                                                   
                                                                               
 JUANITA HENSLEY, Chief, Driver Services, Division of Motor                    
 Vehicles, wanted to make sure that the Amendment 3 did not conflict           
 with the sale of the motor vehicles because the new owner could be            
 required to bring the vehicle up to emissions standards before they           
 could get the vehicle registered.                                             
                                                                               
 Number 1396                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG stated that a person purchasing a vehicle             
 from an auction would have to register the car and pass the                   
 emissions test.                                                               
                                                                               
 Number 1416                                                                   
                                                                               
 MS. HENSLEY stated that before a vehicle could be registered in               
 Anchorage and Fairbanks they have to meet the emission testing                
 standards.  She wondered if this is going to put the burden back on           
 the person buying the vehicle to maybe make repairs before that               
 vehicle can be registered.  She stated that she doesn't have a                
 problem with it but wanted to point it out to the committee.  She             
 asked if Representative Rokeberg had a chance to discuss this with            
 the Department of Environmental Conservation.                                 
                                                                               
 Number 1491                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG stated that it has not been discussed with            
 the department and the test is required before the vehicle can be             
 registered.                                                                   
                                                                               
 Number 1523                                                                   
                                                                               
 REPRESENTATIVE JERRY SANDERS asked if there is a mechanism to tell            
 the buyer so they are aware before they purchase the vehicle that             
 it needs to have an emissions test.  He wondered how this would               
 affect young people who thought they were getting a good deal only            
 to find out that it will cost an extra $1200 to get the vehicle               
 operable.                                                                     
                                                                               
 Number 1556                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG stated that he did not know, it might                 
 require an additional review that could be taken up in the next               
 committee of referral.                                                        
                                                                               
 Number 1583                                                                   
                                                                               
 REPRESENTATIVE SANDERS felt that this should be addressed before              
 the amendment is adopted.  He stated that he is not necessarily               
 against it but it is a question.                                              
                                                                               
 REPRESENTATIVE ROKEBERG stated that he would address it in the                
 House Labor and Commerce Standing Committee.                                  
                                                                               
 Number 1597                                                                   
                                                                               
 REPRESENTATIVE JOHN COWDERY stated that there are no guarantees               
 when buying a vehicle from an auction.                                        
                                                                               
 Number 1623                                                                   
                                                                               
 REPRESENTATIVE SANDERS stated that currently public auctions are              
 not allowed to sell a car that is not registered.                             
                                                                               
 Number 1635                                                                   
                                                                               
 REPRESENTATIVE COWDERY stated that a lot of the time these vehicles           
 are bought for parts.                                                         
                                                                               
 Number 1647                                                                   
                                                                               
 REPRESENTATIVE HUDSON stated that is a policy question of either              
 having it be the municipalities responsibility to deal with the               
 emissions standards test and registration or it being the buyers              
 responsibility.  He stated that municipality has already put funds            
 into removing the vehicles off the streets and basically it would             
 be the buyer beware.  He stated the question is whether the                   
 municipalities are taken off the hook by adopting the amendment.              
                                                                               
 Number 1706                                                                   
                                                                               
 REPRESENTATIVE COWDERY stated that usually the cars that are picked           
 up do not have engines in them, they are usually stripped out and             
 pushed into the street for disposal.                                          
                                                                               
 Number 1623                                                                   
                                                                               
 REPRESENTATIVE SANDERS stated that he would not have a problem with           
 taking this burden off of the municipality and putting it on to the           
 purchaser, his argument is to make sure that the purchaser is made            
 aware of this before the vehicle, that it is not registered, is               
 purchased.  Especially since it has been a law that the vehicles              
 had to be registered and titled, otherwise some people are going to           
 be hurt financially.                                                          
                                                                               
 Number 1760                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG stated that Amendment 3 was at the                    
 recommendation of the towing companies and auctioneers, not the               
 municipality.  He stated that they have not had a chance to look              
 into it but it does make sense at this early stage.                           
                                                                               
 Number 1810                                                                   
                                                                               
 DAN LOWDEN, Lieutenant, Alaska State Troopers, testified via                  
 teleconference from Anchorage, that the bill does have some very              
 positive aspects that will assist him in removing the vehicles.               
                                                                               
 Number 1846                                                                   
                                                                               
 EVERETT MABRY, Manager, Street Maintenance, Municipality of                   
 Anchorage, testified via teleconference from Anchorage, that the              
 municipality strongly supports the bill.  He stated that it will              
 allow the junk cars to be cleaned off the streets and be disposed             
 of more efficiently.                                                          
                                                                               
 Number 1897                                                                   
                                                                               
 REPRESENTATIVE COWDERY asked Mr. Mabry to explain the problem with            
 the abandoned cars in the winter time.                                        
                                                                               
 Number 1908                                                                   
                                                                               
 MR. MABRY stated that abandoned cars in the winter time present               
 tremendous problems when trying to plow the streets.  He stated               
 that it is not uncommon to run in the vehicles because they are               
 disguised by the heavy snow coverage.                                         
                                                                               
 Number 1953                                                                   
                                                                               
 REPRESENTATIVE HUDSON asked what is done with the expense of                  
 removing the junk vehicles and if the expense is assessed to the              
 owners.                                                                       
                                                                               
 Number 1974                                                                   
                                                                               
 MR. MABRY replied that if they can locate the owners they will be             
 assessed, but they have a difficult time in determining the                   
 ownership of the vehicle.                                                     
                                                                               
 Number 1991                                                                   
                                                                               
 REPRESENTATIVE SANDERS asked how the municipality's clean sweep               
 program is progressing and what effect this bill would have on it.            
                                                                               
 Number 2047                                                                   
                                                                               
 MR. MABRY replied that the program is also for junk vehicles on               
 private property not just on public right-of-way.  It does help to            
 identify many junk vehicles and expedites their removal.  He stated           
 that this bill would not really effect the program.  It allows the            
 municipality to get the cars off of the streets quicker.                      
                                                                               
 SHEILA LOWELL, Alaska Tow Truck Association, testified via                    
 teleconference from Anchorage, that the association thinks this               
 bill will make it easier to dispose of the vehicles.  She stated              
 that the towing industry sells the cars to recover the cost since             
 they do not receive federal funding.  She stated that they would              
 like the registration requirement to be deleted.                              
                                                                               
 Number 2105                                                                   
                                                                               
 STEVE SCHWEPPEE, Attorney, City of Ketchikan, testified via                   
 teleconference from Ketchikan, that Amendment 1 would change the              
 notice requirements for abandoned vehicles.  He stated that the               
 statutory procedure stated that the owner had to be notified by               
 certified mail, which can take up to a month.  He stated that they            
 would like to have the flexibility to establish their own                     
 procedures.                                                                   
                                                                               
 Number 2225                                                                   
                                                                               
 REPRESENTATIVE ROKEBERG asked Mr. Schweppee to address Amendment 2            
 regarding the reasonableness of the removals.                                 
                                                                               
 Number 2213                                                                   
                                                                               
 MR. SCHWEPPEE replied that there are a lot of side walk mechanics             
 in Ketchikan and as a result, the ordinance on abandoned vehicles             
 has been amended to read, that a vehicle is abandoned if it                   
 reasonably appears to have been unattended for 48 hours.                      
                                                                               
 Number 2352                                                                   
                                                                               
 REPRESENTATIVE KIM ELTON stated that he is confused with Amendment            
 2 and feels that it just redefines the standard for the word "has"            
 and he does not see how it addresses the in excess of 48 hours                
 problem.                                                                      
                                                                               
 MR. SCHWEPPEE stated that by stating it reasonably appears to have            
 been left unattended, would address the problem of someone pushing            
 the vehicle two feet to claim that they have moved it.                        
                                                                               
 REPRESENTATIVE ELTON stated that the problem is the 48 hour                   
 requirement and the language of "left unattended, standing or                 
 parked."  If the definition of standing is that it can't be moved             
 two feet then it would not need to be changed to "reasonable                  
 appears to have been".                                                        
                                                                               
 Number 2384                                                                   
                                                                               
 MR. SCHWEPPEE stated that he has had cases where a person testifies           
 that they pushed the car every 48 hours a foot or so.  He stated              
 that they have changed their ordinance to read reasonable appears             
 to have been left unattended, standing or parked."  He stated that            
 even though the vehicle had been moved a foot or two, it was still            
 reasonably abandoned.  The word reasonably adds some flexibility.             
                                                                               
 Number 2446                                                                   
                                                                               
 REPRESENTATIVE HUDSON stated that the amendment does give the                 
 judgement to the officers and those who are dealing with the                  
 vehicle.                                                                      
                                                                               
 Number 2469                                                                   
                                                                               
 CHAIRMAN WILLIAMS stated that the committee has not formerly                  
 accepted the amendments for discussion purposes.                              
                                                                               
 TAPE 97-23, SIDE B                                                            
 Number 008                                                                    
                                                                               
 REPRESENTATIVE HUDSON moved Amendment 1, 2 and 3, for adoption.               
                                                                               
 Number 063                                                                    
                                                                               
 CHAIRMAN WILLIAMS asked if there were any objections, hearing none            
 it was so ordered.                                                            
                                                                               
 Number 075                                                                    
                                                                               
 REPRESENTATIVE HUDSON moved to adopt his amendment to insert on               
 line 10 the word "that" to Amendment 2.                                       
                                                                               
 Number 089                                                                    
                                                                               
 CHAIRMAN WILLIAMS asked if there was an objection, hearing none it            
 was so ordered.                                                               
 Number 094                                                                    
                                                                               
 REPRESENTATIVE HUDSON make a motion to move CSHB 222(TRA) as                  
 amended, with individual recommendations, zero fiscal note and                
 asked unanimous consent.                                                      
                                                                               
 Number 102                                                                    
                                                                               
 CHAIRMAN WILLIAMS asked if there were any objections, hearing none,           
 CSHB 222(TRA) was moved out of the House Transportation Committee.            
                                                                               
 HB 175 - PRIVATE MOTOR VEHICLE LICENSING/TESTING                            
                                                                               
 Number 118                                                                    
                                                                               
 CHAIRMAN WILLIAMS announced the committee would take up HB 175, "An           
 Act relating to issuance of motor vehicle registrations and titles,           
 and to licenses and permits to operate a motor vehicle."                      
                                                                               
 Number 170                                                                    
                                                                               
 CHAIRMAN WILLIAMS called for a brief at ease at 2:00 p.m.                     
                                                                               
 Number 170                                                                    
                                                                               
 CHAIRMAN WILLIAMS called the meeting back to order at 2:04 p.m.               
                                                                               
 Number 175                                                                    
                                                                               
 REPRESENTATIVE AL VEZEY stated this bill would be a move towards              
 the privatizing of motor vehicle services.  He had been to a                  
 symposium by the American Association of Motor Vehicle                        
 Administrators, on the subject of privatization and passed out                
 their survey.  He stated that the majority of states are moving               
 towards the direction of privatization although there are different           
 degrees to the level of privatization.  He stated that most                   
 jurisdictions agree that the most difficult part to implementing a            
 privatization program was the resistance from the state employees.            
 He stated that the consensus of experience seems to be that out-              
 sourcing was successfully implemented when the jobs of the public             
 employees were reasonably addressed, in that they did not lose                
 their jobs.  New Jersey had the greatest problems in that toll                
 collectors were making $65,000 a year.  He stated that Alberta and            
 Arizona found employment for all its employees after the                      
 privatization.  He stated that Massachusetts is moving towards out-           
 sourcing, the lines at the Department of Motor Vehicles are so bad            
 that an industry of professional line men have formed, to wait in             
 line.                                                                         
                                                                               
 Number 381                                                                    
                                                                               
 REPRESENTATIVE VEZEY stated that there is a technical amendment               
 which is to change the Department of Public Safety to the                     
 Department of Administration.  He stated that the administration              
 has full authority within the confines of existing contracts to               
 out-source the Department of Motor Vehicle services.  He stated               
 that car dealers are excited about this prospect, however, their              
 employees are virtually unilaterally opposed to it.  He stated that           
 the employees see this as more work without additional pay.  He               
 stated that this really isn't the case.  The incentive for this is            
 coming from the top and not from the employees of the car dealers.            
 He stated that there is a natural resistance from the public                  
 employees as they feel threatened that they are going to lose their           
 jobs, and it is the role of the legislature to allay those                    
 concerns.                                                                     
                                                                               
 Number 528                                                                    
                                                                               
 REPRESENTATIVE COWDERY asked if the same amount of revenue that               
 goes to the state or to the Department of Motor Vehicles will go to           
 privatization.                                                                
                                                                               
 Number 539                                                                    
                                                                               
 REPRESENTATIVE VEZEY replied the Department of Motor Vehicles would           
 not have as many expenses in collecting it but the fees are                   
 identical, there are no cuts taken by the vendor.  He stated that             
 this varies across the states, most do not structure how much their           
 vendors can charge for services.  He stated that the charges range            
 from a five dollar charge to a forty dollar charge.                           
                                                                               
 Number 573                                                                    
                                                                               
 REPRESENTATIVE COWDERY asked if this would allow more remote areas            
 to receive more service.                                                      
                                                                               
 Number 586                                                                    
                                                                               
 REPRESENTATIVE VEZEY replied that the jurisdiction that has lead              
 the country in this area is Saskatchewan, which is a big providence           
 with a small population that has not been able to provide this                
 service with government officers.  He stated that they have 226               
 vendors who provide this service.                                             
                                                                               
 Number 607                                                                    
                                                                               
 REPRESENTATIVE COWDERY asked if it would diminish the quality of              
 the driver's license test.                                                    
                                                                               
 Number 617                                                                    
                                                                               
 REPRESENTATIVE VEZEY replied that no standards would change and the           
 Department of Motor Vehicles would maintain a quality assurance               
 responsibility.                                                               
                                                                               
 Number 628                                                                    
                                                                               
 REPRESENTATIVE COWDERY asked if anyone could get a free notary                
 service as most state offices offer a free notary service.                    
                                                                               
 Number 667                                                                    
                                                                               
 REPRESENTATIVE VEZEY replied that many vendors will do this as a              
 customer service and some will do it as a business for a profit.              
 He stated that most have a set fee that vendors can charge, however           
 some of the bigger programs don't regulate it at all.                         
                                                                               
 Number 686                                                                    
                                                                               
 REPRESENTATIVE ELTON stated that he does not understand why there             
 needs to be the contract language with the third party vendor                 
 involved.  He stated that the state can sometimes be defined as a             
 single entity but having the contract in law assumes the need of              
 every person who wants to be a third party vendor is exactly the              
 same.  He felt that this assumption should not be made.                       
                                                                               
 Number 723                                                                    
                                                                               
 REPRESENTATIVE VEZEY replied that this does not have to be done,              
 but the administration is not taking the lead so as a legislative             
 body we are pushing the administrative branch of government to do             
 business in a different way.  He stated that the contract does have           
 flexibility although it is more rigid than the Department of Motor            
 Vehicles would like.  He stated that it is an equitable contract              
 that grants rights to the vendors and to the Department of Motor              
 Vehicles.  He stated that the Department of Motor Vehicles insisted           
 that the legislature narrow the department's authority to terminate           
 a contract with the vendor.                                                   
                                                                               
 Number 770                                                                    
                                                                               
 REPRESENTATIVE ELTON stated that the provision of the contract                
 provides that either party can get out of the contract with a 60-             
 day notice to the other.  He asked what happens if a third party              
 vender wants to negotiate a 45-day notice, then the legislation               
 would have to be amended.                                                     
                                                                               
 Number 792                                                                    
                                                                               
 REPRESENTATIVE VEZEY replied that whenever two parties agree                  
 mutually they can do as they chose.                                           
                                                                               
 Number 810                                                                    
                                                                               
 REPRESENTATIVE MASEK asked why the amendment is being changed from            
 the Department of Public Safety to the Department of                          
 Administration.                                                               
                                                                               
 Number 830                                                                    
                                                                               
 REPRESENTATIVE VEZEY replied that Executive Order 98 went into                
 effect in April.                                                              
                                                                               
 Number 857                                                                    
                                                                               
 MS. HENSLEY stated that the department has had third party                    
 contractors for 60 years.  She stated that there are 13                       
 commissioned agents in various locations, they are paid on a                  
 transaction based commission.  She stated that the program has been           
 expanded to where the state does not have to pay some of the                  
 contracted third party contractors, such as the tour bus and school           
 bus contractors.  She stated that there are two car dealers that              
 have come on line with the department to do their own titling.  She           
 stated that these are simple transactions that have been out-                 
 sourced.  She stated that in Fairbanks and Anchorage, the                     
 Department has offered the emission testing stations to be                    
 contracted out to do registration renewal.  This does not cost the            
 department anything as the third party is required to pay the up              
 front cost.  Last year 81,000 renewal registrations where processed           
 this way.  The department is looking at having the simple                     
 transactions out-sourced.  The department is currently giving the             
 public both options of vendors and the department.                            
                                                                               
 Number 1235                                                                   
                                                                               
 MS. HENSLEY stated that the division would like more control                  
 because of the audit functions but at the same time do not want a             
 rigid contract in statute and need the flexibility to take an                 
 agreement back at any time, in the case of violations.  She stated            
 that the department feels they have that.  She stated that she is             
 the chair of the International Working Group to study this                    
 privatization and referred to the results of the survey.  She                 
 thought the division needs to work with the legislature more on               
 this bill.                                                                    
                                                                               
 Number 1240                                                                   
                                                                               
 REPRESENTATIVE COWDERY asked what is the largest use of the                   
 department by the public.                                                     
                                                                               
 Number 1252                                                                   
                                                                               
 MS. HENSLEY replied that 63 percent of the public participates in             
 the mail registration program.  She stated that the title                     
 transactions and the issuance of drivers' licenses require the                
 public to come into the office.                                               
                                                                               
 Number 1383                                                                   
                                                                               
 REPRESENTATIVE ELTON asked if a third party contractor is in                  
 violation the department would not be able to cancel the contract             
 unless given the 60 day notice.                                               
                                                                               
 Number 1413                                                                   
                                                                               
 MS. HENSLEY replied that there is a provision in the statute that             
 the department could take action and there would be a due process             
 period.  She stated that the third party would remit the fees to              
 the state every 30-days whereas, the department makes deposits on             
 a daily basis.                                                                
                                                                               
 Number 1468                                                                   
                                                                               
 REPRESENTATIVE ELTON stated that it is his understanding that                 
 Alaska can privatize at any time and the department does not need             
 this bill to accomplish this.                                                 
                                                                               
 MS. HENSLEY replied that is correct.                                          
                                                                               
 Number 1508                                                                   
                                                                               
 REPRESENTATIVE COWDERY asked if his understanding was correct that            
 the private contracts that are in existence have not reduced the              
 number of employees employed by the department.                               
                                                                               
 Number 1535                                                                   
                                                                               
 MS. HENSLEY replied that the department has not reduced the number            
 of employees as a result of the third party contracts.  She stated            
 that the division can not handle the work load as it is.  She                 
 stated that people are paying for services that the Department of             
 Motor Vehicles is not allowed to give them.  She stated that they             
 bring in $37 million dollars but their budget is $8.1 million.                
                                                                               
 Number 1615                                                                   
                                                                               
 REPRESENTATIVE COWDERY made a motion to accept Amendment 1.                   
                                                                               
 Number 1621                                                                   
                                                                               
 CHAIRMAN WILLIAMS asked if there was an objection, hearing none it            
 was so ordered.                                                               
                                                                               
 CHAIRMAN WILLIAMS stated that it was his intention to put this bill           
 into a subcommittee with Representative Cowdery as chair, with                
 Representative Hudson and Representative Elton.  He asked                     
 Representative Cowdery to keep his office informed as to when the             
 meeting is held.                                                              
 ADJOURNMENT                                                                   
                                                                               
 Number 1663                                                                   
                                                                               
 CHAIRMAN WILLIAMS adjourned the House Transportation Standing                 
 Committee at 2:35 p.m.                                                        
                                                                               

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