Legislature(1999 - 2000)

01/26/1999 01:15 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
      HOUSE TRANSPORTATION STANDING COMMITTEE                                                                                   
                  January 26, 1999                                                                                              
                     1:15 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Beverly Masek, Chair                                                                                             
Representative Andrew Halcro, Vice Chair                                                                                        
Representative Bill Hudson                                                                                                      
Representative John Cowdery                                                                                                     
Representative Jerry Sanders                                                                                                    
Representative Allen Kemplen                                                                                                    
Representative Albert Kookesh                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
* HOUSE BILL NO. 8                                                                                                              
"An Act naming the pedestrian underpass at Montana Creek on the                                                                 
Parks Highway as Shelby's Way."                                                                                                 
                                                                                                                                
     -    TABLED                                                                                                                
                                                                                                                                
* HOUSE BILL NO. 7                                                                                                              
"An Act relating to motor vehicle registration plates."                                                                         
                                                                                                                                
     -    HEARD AND HELD                                                                                                        
                                                                                                                                
(* First public hearing)                                                                                                        
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB   8                                                                                                                    
SHORT TITLE: NAMING SHELBY'S WAY PEDESTRIAN UNDERPASS                                                                           
SPONSOR(S): REPRESENTATIVES(S) KOHRING, Masek                                                                                   
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/19/99        19     (H)  PREFILE RELEASED 1/8/99                                                                             
 1/19/99        19     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 1/19/99        19     (H)  TRANSPORTATION                                                                                      
 1/26/99               (H)  TRA AT 1:00 PM CAPITOL 17                                                                           
                                                                                                                                
BILL: HB   7                                                                                                                    
SHORT TITLE: MOTOR VEHICLE REGISTRATION PLATES                                                                                  
SPONSOR(S): REPRESENTATIVES(S) KOHRING                                                                                          
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/19/99        19     (H)  PREFILE RELEASED 1/8/99                                                                             
 1/19/99        19     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 1/19/99        19     (H)   TRANSPORTATION, STATE AFFAIRS,                                                                     
                            FINANCE                                                                                             
 1/26/99               (H)  TRA AT 1:00 PM CAPITOL 17                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
RANDY LORENZ, Legislative Assistant                                                                                             
   to Representative Vic Kohring                                                                                                
Alaska State Legislature                                                                                                        
Capitol Building, Room 421                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-2186                                                                                                      
POSITION STATEMENT:   Presented sponsor statement for HB 7.                                                                     
                                                                                                                                
JUANITA HENSLEY, Administrator                                                                                                  
Division of Motor Vehicles                                                                                                      
Department of Administration                                                                                                    
P.O. Box 110200                                                                                                                 
Juneau, AK  99811-0200                                                                                                          
Telephone:  (907) 465-5648                                                                                                      
POSITION STATEMENT:  Provided testimony on HB 7.                                                                                
                                                                                                                                
RON G. KING, Section Chief                                                                                                      
Air Quality Improvement                                                                                                         
Division of Air & Water Quality                                                                                                 
Department of Environmental Conservation                                                                                        
410 Willoughby Avenue, Suite 105                                                                                                
Juneau, AK  99801-1795                                                                                                          
Telephone:  (907) 465-5100                                                                                                      
POSITION STATEMENT:  Testified in opposition of HB 7.                                                                           
                                                                                                                                
LURA MORGAN, Division Manager                                                                                                   
Environmental Services                                                                                                          
Anchorage Department of Health and Human Services                                                                               
P. O. Box 196650                                                                                                                
Anchorage, AK  99519-6650                                                                                                       
Telephone:  (907) 343-4467                                                                                                      
POSITION STATEMENT:  Provided testimony on HB 7.                                                                                
                                                                                                                                
DAVID HUDSON, First Sergeant                                                                                                    
Division of Alaska State Troopers                                                                                               
5700 East Tudor Road                                                                                                            
Anchorage, AK  99507-1225                                                                                                       
Telephone:  (907) 269-5641                                                                                                      
POSITION STATEMENT:  Provided testimony on HB 7.                                                                                
                                                                                                                                
                                                                                                                                
TIM ROGERS, Legislative Program Coordinator                                                                                     
Municipality of Anchorage                                                                                                       
P. O. Box 196650                                                                                                                
Anchorage, AK  99519                                                                                                            
Telephone:  (907) 343-4467                                                                                                      
POSITION STATEMENT:  Provided testimony on HB 7.                                                                                
                                                                                                                                
MARSHA CAREY, Controller                                                                                                        
Anchorage Chrysler Dodge                                                                                                        
2601 East Fifth Avenue                                                                                                          
Anchorage, AK  99501                                                                                                            
Telephone:  (907) 276-1331                                                                                                      
POSITION STATEMENT:  Testified in support of HB 7.                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-1, SIDE A                                                                                                               
Number 0001                                                                                                                     
                                                                                                                                
CHAIR BEVERLY MASEK called the House Transportation Standing                                                                    
Committee meeting to order at 1:15 p.m.  Members present at the                                                                 
call to order were Representatives Masek, Hudson, Cowdery and                                                                   
Sanders.  Representatives Halcro, Kemplen and Kookesh joined the                                                                
meeting at 1:17 p.m.                                                                                                            
                                                                                                                                
ORGANIZATIONAL MEETING                                                                                                          
                                                                                                                                
CHAIR MASEK reviewed meeting guidelines as outlined in her                                                                      
memorandum of 01-26-98.  It was emphasized that each committee                                                                  
member sign the recommendation sheet when a bill is voted to move                                                               
out of committee.  Each member expressed their feelings regarding                                                               
their involvement on this committee and a brief synopsis of their                                                               
goals for the upcoming 2 years.                                                                                                 
HB 8 - NAMING SHELBY'S WAY PEDESTRIAN UNDERPASS                                                                                 
                                                                                                                                
Number 0902                                                                                                                     
                                                                                                                                
CHAIR MASEK brought House Bill No. 8 before the committee for the                                                               
first time, "An Act naming the pedestrian underpass at Montana                                                                  
Creek on the Parks Highway as Shelby's Way."                                                                                    
                                                                                                                                
REPRESENTATIVE HUDSON noted that there is an ongoing, non-resolved                                                              
lawsuit with the State of Alaska involved in this bill.  It was his                                                             
recommendation that HB 8 be tabled for now until there is some                                                                  
indication by the Department of Law that further action would not                                                               
adversely affect the state's position in that lawsuit.                                                                          
                                                                                                                                
Number 0946                                                                                                                     
                                                                                                                                
REPRESENTATIVE HUDSON made a motion to table HB 8 to the action of                                                              
the Chair.                                                                                                                      
                                                                                                                                
REPRESENTATIVE HALCRO seconded the motion.                                                                                      
                                                                                                                                
CHAIR MASEK noted no objection, and HB 8 was tabled to the call of                                                              
the Chair.                                                                                                                      
HB 7 - MOTOR VEHICLE REGISTRATION PLATES                                                                                        
                                                                                                                                
Number 1008                                                                                                                     
                                                                                                                                
CHAIR MASEK introduced House Bill No. 7 to the committee for the                                                                
first time, "An Act relating to motor vehicle registration plates."                                                             
                                                                                                                                
Number 1040                                                                                                                     
                                                                                                                                
RANDY LORENZ, Legislative Assistant to Representative Vic Kohring,                                                              
Alaska State Legislature, read the following sponsor statement into                                                             
the record:                                                                                                                     
                                                                                                                                
     Problem:  With the passage of biennial motor vehicle                                                                       
     registration fee, many individuals have found themselves                                                                   
     paying fees twice, and I have talked to individuals who have                                                               
     done so as much as three and four times, for the same service.                                                             
     This occurs when an individual's vehicle becomes disabled                                                                  
     either by an accident or mechanical failure and the individual                                                             
     is required to obtain a replacement vehicle, or they sell or                                                               
     trade-in a vehicle.  That individual must register the new                                                                 
     vehicle.  That individual not only must buy new tags, but is                                                               
     out the expense of the old unexpired tags as well.                                                                         
                                                                                                                                
     Solution:  By the owner retaining position of the plates,                                                                  
     he/she would only have to transfer the plates to the new                                                                   
     vehicle and pay any difference in the tax.                                                                                 
                                                                                                                                
     House Bill 7 allows for the plates to remain with the owner                                                                
     affording the owner the ability to transfer the plates to                                                                  
     another vehicle by paying a small transfer fee and any                                                                     
     difference in tax as a result of the increased value of the                                                                
     new vehicle.                                                                                                               
                                                                                                                                
     House Bill 7 also brings regular plates in line with the way                                                               
     vanity plates, disabled plates, and other special plates are                                                               
     presently handled.  The owner of the specialty plates retains                                                              
     those plates, or at least has the opportunity to retain those                                                              
     plates if they desire.                                                                                                     
                                                                                                                                
     Added Value:  Presently, an individual convicted of a DWI                                                                  
     offense can purchase a vehicle that has recent tags, not                                                                   
     register that vehicle, and still be able to drive on the                                                                   
     streets until such time as they happen to be caught by law                                                                 
     enforcement and found in violation.  By the previous owner                                                                 
     retaining those plates, the individual would be driving the                                                                
     vehicle with no plates, would stand out, and would easily be                                                               
     picked up by law enforcement. House Bill 7 would prevent the                                                               
     plates from being transferred with the vehicle.                                                                            
                                                                                                                                
Number 1166                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY asked how HB 7 would affect cab companies                                                                
and car rental companies.                                                                                                       
                                                                                                                                
MR. LORENZ stated that most car rental companies have plates                                                                    
specifically designated and are already retaining them to use when                                                              
they change out stock.  Cab companies would have to pay a transfer                                                              
fee and any increased difference in the cost of the vehicle.  It                                                                
was his opinion that this bill would increase the offense for not                                                               
transferring vehicles in a timely manner and would actually afford                                                              
better control.                                                                                                                 
                                                                                                                                
Number 1223                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY inquired as to how banks or lending                                                                      
institutions would be affected, in terms of identification of                                                                   
vehicles, when they have to repossess.                                                                                          
                                                                                                                                
MR. LORENZ replied that the lending company would have the vehicle                                                              
identification number (VIN) available to them when the vehicle is                                                               
sold.  He added that most private parties usually sell a vehicle                                                                
that is either broken or damaged, so they would already have plates                                                             
that could be transferred when the loan papers are signed.                                                                      
                                                                                                                                
REPRESENTATIVE COWDERY added that, despite the best intentions,                                                                 
problems might arise after the papers are signed.  Even though the                                                              
VIN number can be seen through the windshield, he expressed concern                                                             
that this would make it more difficult to repossess cars in                                                                     
default.                                                                                                                        
                                                                                                                                
MR. LORENZ acknowledged that this might be something to look into                                                               
further.                                                                                                                        
                                                                                                                                
Number 1307                                                                                                                     
                                                                                                                                
REPRESENTATIVE HUDSON questioned the fiscal implications of HB 7.                                                               
It was his impression, according to the fiscal note, that this                                                                  
would result in either a loss of revenue or an increased cost.                                                                  
                                                                                                                                
MR. LORENZ replied that Representative Kohring had looked over the                                                              
fiscal note, and that the Department of Motor Vehicles (DMV) would                                                              
have to be queried as to who would be paying for these changes.  He                                                             
added, "I really feel that the amount of money put on that fiscal                                                               
note is something that they are already forced to spend, and they                                                               
are trying to get the money out of it by using this bill."                                                                      
                                                                                                                                
MR. LORENZ referred to the $3.6 million figure, and felt this bill                                                              
only dealt with taking away the excess tax burden as a result of                                                                
buying a new vehicle or losing a vehicle and having to get another                                                              
vehicle.  He further stated,  "If the state is getting $3.6 million                                                             
dollars by overtaxing Alaskan citizens, I strongly urge it; but I                                                               
really think that if we look into it, we will find that there is a                                                              
lot more thrown in there. It is probably dealing with vehicles that                                                             
are leaving the state, vehicles that are breaking down, as well as                                                              
the cost of a lot of vehicles already out there taken into account                                                              
that would not come under this bill".                                                                                           
                                                                                                                                
MR. LORENZ felt that the fiscal note is severely subject:  that the                                                             
total operating cost should be "zeroed out," the loss of revenue                                                                
drastically brought down, and the cost investigated.                                                                            
                                                                                                                                
Number 1408                                                                                                                     
                                                                                                                                
REPRESENTATIVE HUDSON recognized that Southeast Alaska does not                                                                 
have a vehicle emissions program like the rest of the state, and                                                                
questioned whether or not taking the tag when selling the vehicle                                                               
would have any bearing on that program.                                                                                         
                                                                                                                                
MR. LORENZ responded that HB 7, in its present state, does give the                                                             
DMV the authority to have the "final say-so" with regard to                                                                     
transferring plates.  He added that the new owner could be                                                                      
required to show proof that the vehicle meets standards of                                                                      
emissions in the areas that have such controls.                                                                                 
                                                                                                                                
MR. LORENZ also referred to an amendment, 1-LS0054\A.2, Ford,                                                                   
01/25/99, which read:                                                                                                           
                                                                                                                                
     Page 3, line 13, following "fees.":                                                                                        
                                                                                                                                
     Insert:  If the registration plate or plates issued under this                                                             
     subsection are transferred to a vehicle that will be operated                                                              
     in an area subject to an emission control program established                                                              
     under AS 46.14.400 or 46.14.510, the owner shall provide proof                                                             
     satisfactory to the department that the vehicle meets emission                                                             
     control requirements.                                                                                                      
                                                                                                                                
Number 1503                                                                                                                     
                                                                                                                                
MR. LORENZ added that over 30 states presently use tags affixed to                                                              
each vehicle, separate from the plates, that show when the emission                                                             
is due.  It is his feeling that the State of Alaska should                                                                      
seriously consider using this system.                                                                                           
                                                                                                                                
REPRESENTATIVE HUDSON related that he experienced this situation                                                                
when trading his vehicle from Juneau at an Anchorage location, and                                                              
expressed concern that care be taken with respect to this issue.                                                                
                                                                                                                                
Number 1541                                                                                                                     
                                                                                                                                
MR. LORENZ advised that he had spoken with the Department of Law.                                                               
He stated it was their feeling that, between this amendment and the                                                             
way the bill was already structured, there would be absolutely no                                                               
way a person could circumvent the emission control requirements of                                                              
an area.                                                                                                                        
                                                                                                                                
REPRESENTATIVE HALCRO declared a potential conflict, due to the                                                                 
fact that his company has over 1400 cars registered and titled in                                                               
the State of Alaska in any given year.                                                                                          
                                                                                                                                
REPRESENTATIVE HUDSON objected to this conflict for the record, and                                                             
stated that the committee members would each have to vote.                                                                      
                                                                                                                                
REPRESENTATIVE HALCRO asked how it would come about that some                                                                   
citizens would have to register vehicles three to four times in one                                                             
year.                                                                                                                           
                                                                                                                                
MR. LORENZ cited a case involving one of Representative Kohring's                                                               
constituents.  The woman had just renewed the tags for her vehicle                                                              
in the amount of a little over $200.  Less than one month after                                                                 
this, the vehicle developed transmission problems.  The cost of                                                                 
replacing the transmission was more than what the vehicle was                                                                   
worth, so this individual purchased a second vehicle.  The tags and                                                             
tax for the second vehicle came to over $400.  The woman's daughter                                                             
was driving the car, got into an accident, and "totaled" the                                                                    
vehicle.  The insurance company covered the cost of the vehicle by                                                              
providing her with a new one, but she was then required to pay                                                                  
another $400.  This individual paid over $1000 in tags and taxes                                                                
within a six week period.                                                                                                       
                                                                                                                                
MR. LORENZ felt that this is very much a tax burden on the people                                                               
of Alaska.  He added that, at least in the Mat-Su area and in a                                                                 
good portion of Alaska, many of the jobs are not high paying, and                                                               
many citizens are single parents.  It is his belief that HB 7 would                                                             
alleviate situations such as the above example.                                                                                 
                                                                                                                                
Number 1711                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO asked whether it was really necessary to                                                                  
create wholesale changes to the way the Department of Motor                                                                     
Vehicles (DMV) plates vehicles in the State of Alaska.  Instead, he                                                             
mentioned the possibility of instituting a system of credit to                                                                  
accommodate such rare situations.                                                                                               
                                                                                                                                
MR. LORENZ disagreed.  He stated, "We are developing another                                                                    
bureaucracy.  We are going to have to develop somebody now to trace                                                             
that.  Many states have now gone to the plates belonging to the                                                                 
owner, and they have found it very cost effective.  Presently, we                                                               
are already doing that with, I would say, probably very close to                                                                
25% of our plates.  We have an awful lot of vanity plates out                                                                   
there.  I myself have veteran plates on my vehicle, which retain                                                                
with me and do not transfer with the car.  We are already in place                                                              
doing it.  It is just a matter of bringing the other plates in                                                                  
alignment".                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO argued that, according to the Administration,                                                             
less than 5% of all vehicles registered in the state are vanity                                                                 
plates.  He asked how Mr. Lorenz achieved his figure of 20-25%                                                                  
being vanity plates.                                                                                                            
                                                                                                                                
MR. LORENZ replied that he was just estimating and did not have                                                                 
actual figures; however, the system is already in place and                                                                     
running.  Therefore, it is his belief that this would not be that                                                               
much of a change.                                                                                                               
                                                                                                                                
Number 1798                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO informed the committee that the average cost                                                              
of a new vehicle is about $21,000.  He asked Mr. Lorenz if he was                                                               
advocating "throwing the baby out with the bathwater."  He wondered                                                             
whether an individual who could spend $21,000 on a car would                                                                    
experience a financial hardship from $200 for registration.                                                                     
                                                                                                                                
MR. LORENZ agreed that it would not be a financial hardship for                                                                 
"the rich," but asserted it be would for most of the constituents                                                               
of Alaska who cannot afford a $21,000 car.  He added that many of                                                               
the people he was referring to are "lucky to be able to afford a                                                                
$500 car."  He stated that, as a result of their "economic strap,"                                                              
these cars usually does not last more than about a two-year period,                                                             
and that would be an added tax burden on a low-income family.                                                                   
                                                                                                                                
Number 1843                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO remarked that he had many concerns regarding                                                              
this bill.  For instance, he stated, "My company, in a given year,                                                              
sells 600 cars.  Some of those cars are put on a barge and sent to                                                              
Seattle.  The license plate is basically the car's birthmark.  That                                                             
is how we log it in. That is how we make sure that is where the car                                                             
is going, and it is pretty much how we tie our inventory".                                                                      
                                                                                                                                
REPRESENTATIVE HALCRO, in addition, expressed concern from a public                                                             
safety standpoint.  He explained that when a state trooper or local                                                             
police officer pulls over a car, the officer uses the plate number,                                                             
not the VIN, to identify the vehicle.  If the car is stolen, the                                                                
license plate reflects that.  He related concern that allowing                                                                  
people to keep plates and put them on any other car, in view of the                                                             
viability of getting individuals to actually go down and                                                                        
re-register, raises some serious safety issues.                                                                                 
                                                                                                                                
Number 1900                                                                                                                     
                                                                                                                                
MR. LORENZ referred to the number of states that have already gone                                                              
to this system and do not have a problem with it.  He asserted,                                                                 
"We are not talking about that many vehicles.  We are only talking                                                              
about those people that are going to be --- we are referring to,                                                                
basically, from private party to private party.  Most private                                                                   
parties are buying other vehicles because theirs already broke                                                                  
down, and they already have plates in possession that they can put                                                              
on that vehicle.  So, that is not a real concern."                                                                              
                                                                                                                                
MR. LORENZ added that it is also a current requirement under state                                                              
law that a bill of sale be attached to those vehicles that do not                                                               
have plates on the car.  The bill of sale would show when the                                                                   
transfer took place; therefore, it is Mr. Lorenz' opinion that it                                                               
would not be a problem.  He further added that it is currently not                                                              
a problem with new cars that do not yet have plates.                                                                            
                                                                                                                                
REPRESENTATIVE HALCRO responded that new cars do not have plates                                                                
because they have temporary tags.  These temporary tags are                                                                     
registered with the DMV, and when the plates come in, they are put                                                              
on by the dealer.                                                                                                               
                                                                                                                                
REPRESENTATIVE HALCRO asked whether Mr. Lorenz was aware of federal                                                             
funds that are tied to the municipality being able to manage their                                                              
clean air quality, and reiterated the importance of the emission                                                                
control program.  He expressed concern that the $500 to $1000                                                                   
category of cars mentioned would be much older, and these should be                                                             
a main target of emission control programs to ensure they are up to                                                             
standard in not polluting the air.                                                                                              
                                                                                                                                
REPRESENTATIVE HALCRO specified that he felt the intent of this                                                                 
bill is very commendable; however, it is his belief that the end                                                                
result would create a lot of hardship.  He detailed some of these                                                               
issues: public safety, DMV costs associated in reprogramming                                                                    
computers, federal funds for emission controls if programs slip,                                                                
and motor vehicle taxes taken in the amount of $3.7 million.                                                                    
                                                                                                                                
Number 2016                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOOKESH stated he was really uncomfortable with this                                                             
bill, and that patterning an entire bill after a problem occurring                                                              
with one individual was very unfair to the people of Alaska.  He                                                                
believes core issues should be addressed without creating more                                                                  
bureaucracy.  He requested more specific  information: for example,                                                             
historical background on how this program is working in other                                                                   
states.  He added,  "We are looking at the wrong end of the horse."                                                             
                                                                                                                                
Number 2082                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY related his understanding that plates in                                                                 
Alaska can be purchased for more than one year at a time, and that                                                              
some trailers that require plates could be purchased for up to five                                                             
years.  He referred to those individuals would could not afford                                                                 
registration or even insurance, and stated that often this is not                                                               
discovered until after a tragedy occurs.                                                                                        
                                                                                                                                
REPRESENTATIVE COWDERY gave his daughter as an example.  She has a                                                              
4-wheel drive vehicle for winter use and a 2-wheel drive vehicle                                                                
for use in the summer.  He questioned whether she could just switch                                                             
plates between the two vehicles.                                                                                                
                                                                                                                                
Number 2140                                                                                                                     
                                                                                                                                
MR. LORENZ said no. He further explained that any vehicle retained,                                                             
even if not driven, would have to have a plate.  He mentioned                                                                   
another category of individuals:  those who purchase a vehicle but                                                              
do not bother to register them until the renewal time is up on the                                                              
plates.  In that case, the vehicle would be driven by the person                                                                
who bought it, but not the registered owner of the vehicle.                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY related seeing plates in rural Alaska dated                                                              
1984, and that was more than 10 years after that date.  He                                                                      
acknowledged that enforcement of some of these issues was a                                                                     
problem.                                                                                                                        
                                                                                                                                
Number 2193                                                                                                                     
                                                                                                                                
CHAIR MASEK invited Mr. Lorenz to return to the committee with                                                                  
specific information, such as the percentage of people in the state                                                             
this bill would impact.                                                                                                         
                                                                                                                                
Number 2229                                                                                                                     
                                                                                                                                
JUANITA HENSLEY, Administrator, Division of Motor Vehicles,                                                                     
Department of Administration, came forward to testify on behalf of                                                              
the DMV.  She read the following into the record:                                                                               
                                                                                                                                
     House Bill 7 kind of gives DMV a lot of heartache and a lot of                                                             
     pain, because we feel that we've got a really good system                                                                  
     right now, and this basically turns the apple cart totally                                                                 
     upside down.  Alaska has traditionally allowed plates to                                                                   
     remain with the vehicle when it is sold.  There are 16 states                                                              
     that currently use this method.  In 30 states, the plates                                                                  
     remain with the owner and may be transferred to a new vehicle.                                                             
     Not all of these states allow the unused portion of the                                                                    
     registration, however, to be used on the new vehicle.  The                                                                 
     remaining four states use a combination of two methods.  Both                                                              
     of these systems have advantages and disadvantages.                                                                        
                                                                                                                                
     The states we have talked to that currently have the system we                                                             
     have that have switched over to going to the person as opposed                                                             
     to the vehicle state that they would never switch again.  I                                                                
     mean, it was one of those things that it was a nightmare for                                                               
     them to switch from the vehicle to the person, and they would                                                              
     not switch.  They recommend that, if you currently have that                                                               
     system, to stay with the system of plate-to-vehicle as opposed                                                             
     to plate-to-person.                                                                                                        
                                                                                                                                
     Alaska has allowed certain plates, such as personalized                                                                    
     plates, to be transferred from one vehicle to another, but the                                                             
     registration fees are not transferred with the plate.  The                                                                 
     registration fees are paid for a particular vehicle, and they                                                              
     remain with that vehicle.  The number of vehicles with                                                                     
     registration plates that can be transferred represent less                                                                 
     than 5% of the total vehicles registered.  So the personalized                                                             
     plates are less than 5% of the total registered vehicles in                                                                
     the state, not 25%.                                                                                                        
                                                                                                                                
     No one is actually paying twice.  Instead, they are paying a                                                               
     registration fee for each vehicle that they are operating on                                                               
     the roadways.  The argument could be made that a person paid                                                               
     for 24 months of registration but did not get to use the                                                                   
     vehicle or was in an accident or mechanical failure.  In                                                                   
     response to this, the registration fees have always been for                                                               
     either a one or two year period, and the full fees have been                                                               
     due regardless of how much or how little the vehicle is being                                                              
     used.  A person who uses a vehicle one day pays the same as a                                                              
     person who uses a vehicle 365 days.  A person who drives 10                                                                
     miles to work pays the same as a person who drives 100 miles                                                               
     a day to work.                                                                                                             
                                                                                                                                
     Although registration fees are not dedicated funds, it can be                                                              
     argued that public services that normally could be associated                                                              
     with these fees, such as our road system, emergency services,                                                              
     state troopers, Alaska Court System, DMV offices, etc., are                                                                
     available year round for these services and do not go away                                                                 
     when one person does not use their vehicles.                                                                               
                                                                                                                                
     Secondly, if DMV were to allow plates and fees to be                                                                       
     transferred from one vehicle to another, major changes would                                                               
     have to be made to the vehicle registration computer system.                                                               
     Currently, the law says that the registration period remains                                                               
     the same, regardless of the ownership changes.  Under this                                                                 
     proposed concept, the registration plates would be identified                                                              
     with the owner, rather than the vehicle.  Changes would have                                                               
     to be made to properly account for the fees and to transfer                                                                
     them to the new vehicles and expire the registration period                                                                
     for the previous vehicles.  Since the DMV registration system                                                              
     also serves as an accounting system that links particular fees                                                             
     to a particular vehicle, this would mean major changes. That                                                               
     is why you see the $968,000 operational cost for computer                                                                  
     programming changes.                                                                                                       
                                                                                                                                
     Lastly, the bill would make it difficult to enforce programs,                                                              
     such as the emission inspection program, that are enforced                                                                 
     through the registration process.  This would have a                                                                       
     detrimental effect on air quality and may jeopardize federal                                                               
     funds for failing to meet the federal air quality standards.                                                               
     Out of the concept of the bill that is proposed, and I am not                                                              
     talking about the bill that is in front of you, it would be                                                                
     possible to transfer a plate from a currently registered                                                                   
     vehicle to one that does not meet the emissions standards.  By                                                             
     doing this repeatedly, the vehicle would evade inspections for                                                             
     several years.  I believe that the Department of Environmental                                                             
     Conservation (DEC) is here as well and will be addressing                                                                  
     those clean air problems.                                                                                                  
                                                                                                                                
     To kind of, also, say something about Representative Cowdery                                                               
     saying that he was in rural Alaska and saw several vehicles                                                                
     that had 1984 registration plates on them --- vehicles that                                                                
     are in rural Alaska, extreme rural villages, that have fewer                                                               
     than 499 average daily traffic going up and down the road are                                                              
     exempt registration.  So, they don't have to register the                                                                  
     vehicles.  If you are out in McGrath, you don't have to                                                                    
     register a car out in McGrath; they are exempt from that.                                                                  
                                                                                                                                
REPRESENTATIVE COWDERY asked if these rural areas were exempt from                                                              
insurance as well.                                                                                                              
                                                                                                                                
MS. HENSLEY said yes. She added that Charles Hosack, Deputy                                                                     
Director for the DMV, was standing on-line from Anchorage and could                                                             
answer a lot of the fiscal questions.  She also volunteered to                                                                  
answer as many questions as possible, and to refer those she could                                                              
not answer to Mr. Hosack.                                                                                                       
                                                                                                                                
REPRESENTATIVE KOOKESH requested a copy of the verbal testimony                                                                 
just given after it was "cleaned up."                                                                                           
                                                                                                                                
CHAIR MASEK echoed his request for a copy for each committee                                                                    
member, and Ms. Hensley agreed.                                                                                                 
                                                                                                                                
REPRESENTATIVE HUDSON asked when the state went to a two-year                                                                   
licensing and registration program.                                                                                             
                                                                                                                                
MS. HENSLEY replied that this program went into effect in 1997.                                                                 
                                                                                                                                
TAPE 99-2, SIDE A                                                                                                               
Number 0037                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY inquired as to the difference in cost of                                                                 
registering a $22,000 vehicle versus a $2,000 vehicle.                                                                          
                                                                                                                                
MS. HENSLEY explained that the cost is $68 per two-year period for                                                              
a passenger car and $78 per two-year period for a pick-up truck.                                                                
She added that this registration fee applies regardless of the cost                                                             
of the vehicle; however, this does not include local municipal                                                                  
taxes.  The DMV collects those taxes and remits them to the                                                                     
municipalities.  "Mat-Su borough, Kenai borough, Ketchikan, Bethel                                                              
all charge different tax tables than what Anchorage or some of the                                                              
other communities charge", she indicated.                                                                                       
                                                                                                                                
Number 0132                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO reopened the issue of older vehicles.  He                                                                 
questioned whether, in most municipalities, local taxes were lower                                                              
the older the vehicle.                                                                                                          
                                                                                                                                
MS. HENSLEY specified that a brand new passenger vehicle in                                                                     
Anchorage would have property taxes of $121 per year, and a vehicle                                                             
eight years old or older would have taxes of $16 per year.  The                                                                 
exception to the rule, however, is Mat-Su borough.  In that                                                                     
municipality, the opposite applies; the newer vehicle carries a                                                                 
less expensive tax.  She explained that the removal of abandoned                                                                
vehicles in that borough is much more expensive; consequently, they                                                             
have placed a higher tax table on older vehicles.                                                                               
                                                                                                                                
REPRESENTATIVE HALCRO pointed out that this was a local tax issue,                                                              
and not a statewide DMV issue.                                                                                                  
                                                                                                                                
MS. HENSLEY agreed, and added that the only thing the DMV does is                                                               
enforce collection of taxes for the municipalities.                                                                             
                                                                                                                                
Number 0258                                                                                                                     
                                                                                                                                
CHAIR MASEK questioned whether or not a bill was passed "a couple                                                               
of years ago" that gave boroughs and municipalities control to                                                                  
raise or lower those taxes.                                                                                                     
                                                                                                                                
MS. HENSLEY confirmed this, and explained that the municipalities                                                               
are given the option to use the tax table as set in statute or set                                                              
their own tax base.  They are required to notify the DMV one year                                                               
in advance so they can collect those taxes for them.  Some examples                                                             
of this include Mat-Su, Kenai and Ketchikan.  She emphasized,                                                                   
however, that this would have nothing to do with the actual cost of                                                             
registration, and is strictly a municipal tax program.  The DMV                                                                 
does not get involved when a vehicle has been destroyed and a                                                                   
person requests a refund of their taxes; that would be between the                                                              
individual and the municipalities.                                                                                              
                                                                                                                                
CHAIR MASEK addressed the issue of an individual selling a vehicle                                                              
and the buyer not changing the registration right away.  If the DMV                                                             
is notified by the seller that they no longer own that car, she                                                                 
questioned, would it not show up on record that the seller no                                                                   
longer owns the vehicle?                                                                                                        
                                                                                                                                
MS. HENSLEY affirmed that the record would show the vehicle was                                                                 
sold if the seller mailed the assignment of interest, on the bottom                                                             
part of the title, to the DMV.  It is a state law, she added, that                                                              
the new owner register under their name; however, the DMV cannot                                                                
enforce this.  She wondered how the new owner could legally drive                                                               
the car if, under HB 7, the tags were removed from the car and kept                                                             
with the seller.  They would not legally be able to drive to the                                                                
DMV to purchase their new plates.                                                                                               
                                                                                                                                
Number 0510                                                                                                                     
                                                                                                                                
RON G. KING, Section Chief, Air Quality Improvement, Division of                                                                
Air & Water Quality, Department of Environmental Conservation, came                                                             
forward to testify on behalf of the Department of Environmental                                                                 
Conservation.  He explained that one of the programs he is                                                                      
responsible for is the vehicle inspection program, and added that                                                               
this program is operated in Anchorage and Fairbanks by local                                                                    
communities.  The program's principal means of enforcement right                                                                
now is vehicle registration.  Under federal law, the program is to                                                              
be equal to, in stringency, the vehicle registration process.  He                                                               
reported that some states do use "vehicle stickers" placed on the                                                               
windows; however, in most cases it is a vehicle sticker in addition                                                             
to vehicle registration.                                                                                                        
                                                                                                                                
MR. KING informed the committee that his department will provide                                                                
their fiscal note on HB 7 in the near future.  He added that                                                                    
changing from a registration-based to a plate-based program for the                                                             
DMV would have significant impacts on vehicle inspection programs,                                                              
including decreased compliance rates.  For example, he cited Willow                                                             
and Houston, and explained that their registration grew                                                                         
approximately 400% at the start of the inspection and maintenance                                                               
program (I/M).  In moving the plate from one vehicle to another,                                                                
the DEC would have no way of tracking the vehicle to take                                                                       
enforcement actions; therefore, they are opposed to HB 7 as it                                                                  
stands at this time.                                                                                                            
                                                                                                                                
Number 0674                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO acknowledged the effort that has been made in                                                             
trying to meet clean air standards.  He questioned whether or not                                                               
HB 7 would negatively affect "quality of life".                                                                                 
                                                                                                                                
MR. KING said yes.  He agreed that vehicle inspection programs and                                                              
the citizens of Anchorage, Fairbanks and the Mat-Su Valley have                                                                 
made tremendous efforts.  Specifically, he explained, air quality                                                               
violations have gone from as many as 130 a year in Fairbanks in the                                                             
first part of 1980 to four or five today.  Anchorage had only one                                                               
violation in the month of January, and last year "made two years".                                                              
MR. KING reiterated that, under HB 7, compliance will suffer, and                                                               
this will mean more cars operating on the road with higher                                                                      
emissions.  This will result in potentially continued violation of                                                              
the standards.                                                                                                                  
                                                                                                                                
CHAIR MASEK again requested the fiscal note from the DEC, and                                                                   
thanked Mr. King for testifying.                                                                                                
                                                                                                                                
Number 0827                                                                                                                     
                                                                                                                                
LURA MORGAN, Division Manager, Environmental Services, Anchorage                                                                
Department of Health and Human Services, provided the following                                                                 
testimony via teleconference on behalf of their department:                                                                     
                                                                                                                                
     As you may know, the EPA recently reclassified Anchorage as a                                                              
     serious non-attainment area for carbon monoxide air pollution.                                                             
     There are currently only 7 cities, including Anchorage and                                                                 
     Fairbanks, in the United States that are designated as serious                                                             
     non-attainment areas for CO.  Over 80% of the carbon monoxide                                                              
     pollution in Anchorage is produced by cars and trucks.  The                                                                
     vehicle inspection and maintenance program is a key element of                                                             
     our carbon monoxide pollution control program.  As was already                                                             
     stated, we have made great strides toward reaching compliance                                                              
     with federal air pollution standards, and the Anchorage I/M                                                                
     program has been a big part of these air quality improvements.                                                             
     Over the last 15 years, carbon monoxide pollution levels have                                                              
     been cut in half in Anchorage, and we are very close, as was                                                               
     mentioned earlier, to achieving our goal of meeting federal                                                                
     air quality standards.                                                                                                     
                                                                                                                                
     We are concerned that HB 7 will have a negative impact on our                                                              
     I/M program and on our air quality.  The vast majority of                                                                  
     citizens in Anchorage comply with the requirements to have air                                                             
     pollution emissions from their cars and trucks tested every                                                                
     two years.  There is, however, a minority of vehicle owners                                                                
     that evade the law.  Some vehicle owners who fail an I/M test                                                              
     may choose to not re-register their vehicle and take their                                                                 
     chances.  From an air quality standpoint, it is particularly                                                               
     important that we identify these I/M evaders, because vehicles                                                             
     that fail the I/M test can emit up to 100 times more carbon                                                                
     monoxide than vehicles that meet I/M emission standards.  For                                                              
     this reason, a significant part of the I/M program is                                                                      
     identifying these I/M evaders and bringing them into                                                                       
     compliance with emission standards.                                                                                        
                                                                                                                                
     Identifying I/M evaders is already difficult.  HB 7 could make                                                             
     this task even more so.  Two of our best tools for identifying                                                             
     evaders are on-street enforcement by the Anchorage Police                                                                  
     Department and the DMV registration file.  If HB 7 becomes                                                                 
     law, license plate information will no longer be coupled with                                                              
     the vehicle.  It will become much more difficult to determine                                                              
     whether the I/M test is current or not or whether the                                                                      
     registration for the vehicle was moved outside the I/M area.                                                               
                                                                                                                                
     If HB 7 becomes law, license plate switching from vehicle to                                                               
     vehicle will be the practice.  Although HB 7 requires the                                                                  
     vehicle owners to get the approval of DMV before switching                                                                 
     plates, there will almost certainly be an increase in illegal                                                              
     or inadvertent switching that will take place without DMV                                                                  
     approval.  If a vehicle fails an I/M test, for example, the                                                                
     owner could use plates from another registered vehicle and                                                                 
     avoid the I/M testing requirement until the registration on                                                                
     that vehicle expires.  This would allow the vehicle owner to                                                               
     illegally drive a potentially heavy polluting vehicle for many                                                             
     months with little possibility of detection.                                                                               
                                                                                                                                
     In short, we are concerned about the impact that HB 7 could                                                                
     have on the effectiveness of the I/M program and on air                                                                    
     quality in Anchorage.  We ask that you consider these impacts                                                              
     when considering the bill.  Thank you for listening to these                                                               
     concerns.                                                                                                                  
                                                                                                                                
Number 1030                                                                                                                     
                                                                                                                                
DAVID HUDSON, First Sergeant, Division of Alaska State Troopers,                                                                
testified via teleconference from Anchorage.  He expressed concern                                                              
that HB 7 would allow the potential for driving a motor vehicle on                                                              
the highway without any license plate at all for 30 days.                                                                       
                                                                                                                                
REPRESENTATIVE HUDSON concurred that this was a concern of his as                                                               
well.  He acknowledged that much of the state trooper's work is                                                                 
tied to being able to trace a license plate to an accident or                                                                   
crime.  He asked for clarification that this was also a concern for                                                             
the Division of Alaska State Troopers.                                                                                          
                                                                                                                                
SERGEANT HUDSON confirmed that this was their concern; it would be                                                              
much more difficult identifying a vehicle without a license plate.                                                              
                                                                                                                                
Number 1137                                                                                                                     
                                                                                                                                
TIM ROGERS, Legislative Program Coordinator, Municipality of                                                                    
Anchorage, provided testimony via teleconference.  "Our number one                                                              
concern is the air quality issue," he explained.  "We believe that                                                              
needs to be resolved before this bill moves forward."  He outlined                                                              
two more concerns:  the public safety issue enumerated by Sergeant                                                              
Hudson, and a potential loss of between $200,000 and $400,000 per                                                               
year in tax revenue for the municipality of Anchorage.  He                                                                      
requested that all three of these issues be resolved before this                                                                
bill moves out of committee.                                                                                                    
                                                                                                                                
REPRESENTATIVE HALCRO asked whether the $200,000 to $400,000                                                                    
deficit in tax revenue would be passed on to the property owners in                                                             
Anchorage by way of increased property taxes.                                                                                   
                                                                                                                                
MR. ROGERS said yes.                                                                                                            
                                                                                                                                
CHAIR MASEK requested a copy of Mr. Rogers written testimony if                                                                 
available.                                                                                                                      
                                                                                                                                
Number 1256                                                                                                                     
                                                                                                                                
MARSHA CAREY, Controller, Anchorage Chrysler Dodge, provided                                                                    
testimony in support of HB 7.  In December of 1997, she related,                                                                
she was part of a 6-member reengineering team consisting of DMV                                                                 
employees and others.  After 3 days of debating this issue, the                                                                 
team covered every item previously mentioned.  She provided the                                                                 
following written testimony:                                                                                                    
                                                                                                                                
     I am writing you in favor of HB 7.  Allowing the public to                                                                 
     take possession of their vehicle plates will be beneficial to                                                              
     the consumer and to the DMV in the long run.  I do realize the                                                             
     cost we are currently facing to implement this legislation,                                                                
     but please caution yourselves against any costs that are                                                                   
     currently implied regardless of any changes to the current                                                                 
     procedures.  For example, DMV is currently in need of a new                                                                
     computer system; therefore, any cost associated with                                                                       
     programming or purchasing new equipment should not be an                                                                   
     issue.  Are you aware DMV cannot cross-reference searching a                                                               
     person to registered owner on "ALVIN" (current computer)? This                                                             
     type of hardware or software is obviously limited and                                                                      
     outdated.  I have also been informed the current system is not                                                             
     Y2K compatible.                                                                                                            
                                                                                                                                
     Please consider the following information as support for this                                                              
     bill.                                                                                                                      
                                                                                                                                
     License plate belongs to person, not vehicle:                                                                              
     Cost of transferring plate to new or used vehicle:                                                                         
     *    Title fee $5                                                                                                          
     *    Lien fee $5                                                                                                           
     *    Plate transfer fee $5                                                                                                 
                                                                                                                                
     New owner required to switch title in a timely manner to                                                                   
     obtain new plate or validate their prepaid plate.  Benefits:                                                               
     *    No plate on vehicle is motivation to transfer title.                                                                  
     *    Insurance binder required at time of transfer to insure                                                               
          coverage.  Currently, insurance validation is very weak.                                                              
          We need to become more stringent on proof of insurance.                                                               
          (No proof....no registration).                                                                                        
     *    Fraudulent plate use made to be more serious offense.                                                                 
          Ten day title transfer requirement currently carries no                                                               
          meaningful penalty.                                                                                                   
     *    Enforce meaningful fine for non-compliance.  Currently,                                                               
          non-transfer of title occurs frequently because people                                                                
          try to avoid responsibility of ownership due to risk                                                                  
          associated with driving without insurance, parking fines                                                              
          and law enforcement evasion.                                                                                          
     *    Assignment of interest becomes valid temporary for 5                                                                  
          days.                                                                                                                 
                                                                                                                                
     Another issue at hand is collection of Motor Vehicle                                                                       
     Registration Tax (MVRT).  Return the collection of these taxes                                                             
     to the cities and boroughs.  Perhaps attach this tax to the                                                                
     personal property tax or to the Permanent Fund program. (Note                                                              
     PFD records have the most current addresses of Alaskans).                                                                  
     This will help DMV clean up their name file.                                                                               
                                                                                                                                
     Emissions programs are currently trying to change the                                                                      
     certificate system to window sticker identification.  Place                                                                
     the responsibility of emissions enforcement back to the city                                                               
     that requires the standard.                                                                                                
                                                                                                                                
     A DMV Reengineering Team I served on, along with DMV employees                                                             
     and other outside sources, presented these suggestions.  We                                                                
     spent 3 days in December of 1997 reviewing and discussing                                                                  
     several different issues.  The information that is provided in                                                             
     this letter reflects the ideas that were generated by this                                                                 
     group.                                                                                                                     
                                                                                                                                
Number 1632                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO reiterated that one of the driving forces                                                                 
behind this bill is the hardship it causes when people buy a $1000                                                              
to $2000 vehicle and it causes them a disproportionate amount to                                                                
re-register.  He asked Ms. Carey how many cars on the Anchorage                                                                 
Chrysler lot were valued at $2000 or less.                                                                                      
                                                                                                                                
MS. CAREY stated that, unfortunately, there were none at this time.                                                             
                                                                                                                                
REPRESENTATIVE HALCRO addressed the issue of law enforcement                                                                    
checking a license plate for background as opposed to getting out                                                               
of the car and checking the VIN.  He added, "More importantly, my                                                               
concern is, I take delivery of cars from Fairbanks to Petersburg,                                                               
and if I'm responsible for the plates, that means that the next                                                                 
year I have to ship the same amount of cars into each individual                                                                
location to use those plates.  I think it creates a tremendous                                                                  
hardship, not only for myself, but....."                                                                                        
                                                                                                                                
MS. CAREY questioned why that would be the case.                                                                                
                                                                                                                                
REPRESENTATIVE HALCRO explained that when cars are sold, whether                                                                
they are wholesale, retail or program cars, he would have extra                                                                 
plates leftover.                                                                                                                
                                                                                                                                
MS. CAREY disagreed, stating that a plate transfer could occur for                                                              
a $5.00 fee.                                                                                                                    
                                                                                                                                
Number 1779                                                                                                                     
                                                                                                                                
REPRESENTATIVE HUDSON requested that the sponsor of HB 7                                                                        
specifically address what the potential savings would be to the                                                                 
people at large.  He wondered how many transfers or sales would                                                                 
accrue a cumulative economic benefit to people versus the cost to                                                               
the DMV and loss of revenue.  He added that the loss of revenue                                                                 
issue is important, and that $3.5 million dollars lost in the                                                                   
income stream would have to be made up somewhere, either by                                                                     
increased cost of registration overall or something of that nature.                                                             
These two figures need to be presented to the committee, he                                                                     
stressed, before a policy decision can be made.                                                                                 
                                                                                                                                
Number 1886                                                                                                                     
                                                                                                                                
MR. LORENZ assured the committee that these issues would be                                                                     
researched and the committee informed of the findings.                                                                          
                                                                                                                                
REPRESENTATIVE HALCRO encouraged delving deeper than the                                                                        
Administration's fiscal note by addressing loss to municipalities                                                               
throughout the state, shifting the tax burden, and possible loss of                                                             
federal clean air funds.                                                                                                        
                                                                                                                                
CHAIR MASEK indicated the bill would be held over.                                                                              
ADJOURNMENT                                                                                                                     
                                                                                                                                
CHAIR MASEK adjourned the House Transportation Standing Committee                                                               
meeting at 2:40 p.m.                                                                                                            
                                                                                                                                

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