Legislature(2023 - 2024)BARNES 124
03/02/2023 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB81 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 81 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
March 2, 2023
1:02 p.m.
MEMBERS PRESENT
Representative Kevin McCabe, Chair
Representative Tom McKay
Representative Craig Johnson
Representative Jesse Sumner
Representative Genevieve Mina
MEMBERS ABSENT
Representative Sarah Vance, Vice Chair
Representative Louise Stutes
COMMITTEE CALENDAR
HOUSE BILL NO. 81
"An Act relating to the transfer of a title on the death of the
owner; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 81
SHORT TITLE: VEHICLES/BOATS: TRANSFER ON DEATH TITLE
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER
02/22/23 (H) READ THE FIRST TIME - REFERRALS
02/22/23 (H) TRA, STA
03/02/23 (H) TRA AT 1:00 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE GEORGE RAUSCHER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented HB 81.
RYAN MCKEE, Staff
Representative George Rauscher
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave the sectional analysis of HB 81 on
behalf of Representative Rauscher, prime sponsor.
JEFFERY SCHMITZ, Director
Division of Motor Vehicles
Department of Administration
Anchorage, Alaska
POSITION STATEMENT: Fielded questions relating to the Division
of Motor Vehicles, during the hearing on HB 81.
ACTION NARRATIVE
1:02:19 PM
CHAIR KEVIN MCCABE called the House Transportation Standing
Committee meeting to order at 1:02 p.m. Representatives
Johnson, McKay, Mina, Sumner, and McCabe were present at the
call to order.
HB 81-VEHICLES/BOATS: TRANSFER ON DEATH TITLE
1:02:55 PM
CHAIR MCCABE announced that the only order of business would be
HOUSE BILL NO. 81, "An Act relating to the transfer of a title
on the death of the owner; and providing for an effective date."
1:03:50 PM
REPRESENTATIVE GEORGE RAUSCHER, Alaska State Legislature, as
prime sponsor, presented HB 81. He stated that the process of
probate in Alaska can take anywhere from six months to several
years and can cost family members and beneficiaries thousands of
dollars and potentially tens of thousands of dollars in legal
and filing fees. He said that while the legislature has already
taken great strides to reduce the costs of probate, there is
still much room for improvement. He explained that HB 81
continues, in spirit, with the Uniform Real Property Transfer on
Death Act (URPTDA), which he noted had unanimously passed both
the Alaska House and Senate in 2014. He further explained that
URPTDA created the Transfer on Death (TOD) deed, which allows
for nonprobate transfers of real property. He said TOD deeds
allow Alaskans to select a beneficiary who will receive the
property at their passing and removes that property from the
process of probate. He recounted that in 2016, legislation
similar to HB 81 was introduced but failed to pass that session.
He stated that HB 81 is nearly identical but expands the concept
to apply both to vehicles and boats that are issued titles
through the state. He stated that HB 81 continues the effort to
reduce the costs of probate for Alaskans and creates a
streamlined service through the Division of Motor Vehicles (DMV)
through which the DMV can designate beneficiaries for both cars
and boats through a form. The TOD titles will be available for
all boats and vehicles for which the DMV provides titles, which
he said also includes some mobile manufactured homes under AS
45.29.102(66). He noted that the program will be self-
sustaining through fees. He commented that, at no cost to the
state, HB 81 would allow Alaskans to pass down boats, vehicles,
and some manufactured homes to beneficiaries with more ease, and
would help simplify and streamline the process of probate
following the death of a loved one.
1:07:00 PM
RYAN MCKEE, Staff, Representative George Rauscher, Alaska State
Legislature, on behalf of Representative Rauscher, prime
sponsor, gave the sectional analysis for HB 81, which read as
follows [original punctuation provided, with some formatting
changes]:
Section 1:
Adds a new section under AS 05.25 that allows owners
of boats, for which the Department of Administration
(DoA) issues titles, to obtain a transfer on death
(TOD) title.
Section 2:
Amends AS 13.33.101(a) to add a transfer of a boat or
vehicle by a TOD title to the existing list of
acceptable nonprobate transferable property.
Section 3:
Creates a provision under AS 13.33 for a transfer on
death (TOD) title for boats and vehicles. Creates and
defines the mechanism through the Division of Motor
Vehicles (DMV), by which individuals will obtain,
revoke, or change their transfer on death title and
defines the parameters of the transfer on death title.
(a)-(c) Obtaining a TOD Title
• Creates a provision under AS 13.33 for a transfer on
death title for vehicles and boats for which DoA
issues titles.
o This includes some manufactured homes for which
the DMV issues titles under AS 45.29.102(66). These
homes are without a permanent foundation and
transportable in one or more sections.
• Requires that the transfer of title to the
designated beneficiary occurs when the sole owner or
last surviving joint owner of the vehicle dies.
• Requires that owners of the boats or vehicles file a
form through the DMV and pay associated fees to apply
for a TOD title.
• Limits the TOD titles to two beneficiaries.
(d) TOD titles effective without notice or
consideration
• Provides that TOD titles will not require notice or
acceptance by the designated beneficiary.
• Provides that TOD titles will not be subject to
consideration, the process by which there is an
exchange or "quid pro quo" required from the recipient
of the assets.
o Language taken from TOD deed statute under AS
13.48.060.
(e) TOD titles are nontestamentary
• States that TOD titles are nontestamentary, meaning
that the associated vehicles do not need to be
provided for in the decedents will.
(f)-(g) Revocation or Change to TOD titles
• Provides that the owner may revoke or change the
designated beneficiary on the TOD at any time without
the beneficiary's consent.
• Explains the process by which owners may revoke or
change a TOD title.
o The owner can either assign and deliver the
certificate of title for the vehicle to another
person, thereby revoking the TOD title, or;
o file with the DMV to reissue the title without
a designated beneficiary or with a different
designated beneficiary.
(h) Designated beneficiaries right to disclaim
interest
• Allows designated beneficiaries to refuse the boat
or vehicle designated to them in a TOD title.
o Language taken from TOD deed statute under AS
13.48.100.
1:11:00 PM
(i) TOD titles subject to decedent's creditors,
contracts, etc.
• Subjects the TOD title to creditor's claims against
the owner's estate, as well as to other interests,
contracts, liens, encumbrances, assignments, and other
interests.
These interests remain attached to the boat or
vehicle after it is transferred to the designated
beneficiary.
(j-m) Enforcing liability upon TOD titles
Imposes the same procedures for enforcing liability
upon TOD titles that is applied to TOD deeds under AS
13.48.110 and AS 13.48.088.
o Provides that the estate may enforce liability
against boats or vehicles with TOD titles if the
owner's estate does not cover an allowed claim.
o States that if there are multiple vehicles
and/or boats, and a liability exists in the deceased's
estate, the liability will be apportioned to each
asset in proportion to its net value.
o Requires that a proceeding to enforce a
liability must begin within 12 months of the owner's
passing and can only begin once proper notification to
beneficiaries has occurred.
o Stipulates that TOD titles do not affect rights
of ownership before the owner's 3 Sectional Analysis:
31-LS0422\U death, and do not affect rights of the
designated beneficiary or creditors of the owner(s).
o TOD titles do not give legal or equitable
preference to the designated beneficiary.
o TOD titles do not affect designated
beneficiaries' eligibility for state public
assistance.
(n-p) Uniform standard of survivorship, requirements
to receive TOD title
• Requires that the designated beneficiary survive the
previous owner by 120 hours.
• Requires that the designated beneficiary submit
proof of the owner's death and an application and
associated fees to the DMV.
• If there are two beneficiaries listed on the TOD
title, they become joint owners.
(q) TOD titles may not be changed by other instruments
• Provides that TOD titles may only be changed by the
process outlined in section 3 and not by a will or any
other instrument.
(r) Gives the DoA authority to develop regulations to
implement the TOD titles, establish necessary forms
and fees, etc.
(s) Definitions Section 4: Amends AS 13.48.110(c) to
add a person acting on behalf of the surviving spouse
of the decedent to the list of people who may demand
to enforce liability against the decedents' property.
Section 5: Adds a new section to AS 28.10.275,
relating to vehicle titles, to clearly state that
owners of vehicles for which the DMV issues titles may
obtain a TOD title.
Section 6: Gives the DoA authority to develop
necessary regulations.
Section 7: Applies an immediate effective date to
section 5 of the bill to allow the department to
develop regulations.
Section 8: Applies an effective date of July 1, 2024
to the legislation except for sections 5 and 7.
1:14:55 PM
REPRESENTATIVE MINA questioned what the process currently is if
someone passes away and they owned a boat. She asked how HB 81
would change the process in that scenario.
1:15:39 PM
JEFFERY SCHMITZ, Director, Division of Motor Vehicles,
Department of Administration, responded that there are too many
factors based on individual situations and how the titles look
to provide an answer to the question. He shared that one of the
most complicated functions the DMV carries out is transferring
titles upon death.
1:16:54 PM
CHAIR MCCABE stated that since the last time HB 81 was under
consideration, boat titles were going to be shifted from the
Alaska Department of Fish & Game (ADF&G) to the DMV. He asked
if the shift was complete.
MR. SCHMITZ answered that the DMV titles some boats, not all,
contingent on the size of the vessel.
CHAIR MCCABE asked if there can be only one lien on a boat.
MR. SCHMITZ answered yes; the process is the exact same for a
boat as it would be for a car.
CHAIR MCCABE asked if HB 81 applies to commercial and personal
use boats, for example, a commercial fishing boat.
MR. SCHMITZ explained that the question pertains to ownership.
It does not matter if the vessel is commercial or not, if it is
titled in an individual's name, the bill outlines that such a
title would apply to all types of vehicles.
1:20:13 PM
REPRESENTATIVE C. JOHNSON highlighted the comment that some
boats are licensed under ADF&G. He asked if HB 81 covers ADF&G
titled vessels and, if not, whether the committee should
consider adding ADF&G vessels to the provisions under HB 81.
REPRESENTATIVE RAUSCHER said he could not answer that question
today but could provide a follow-up answer to members in the
future.
1:21:18 PM
CHAIR MCCABE opened public testimony on HB 81. After
ascertaining there was no one who wished to testify, he closed
public testimony.
1:21:51 PM
CHAIR MCCABE announced that HB 81 was held over.
1:22:08 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 1:22
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 81 Sectional Analysis Version A.pdf |
HTRA 3/2/2023 1:00:00 PM HTRA 3/7/2023 1:00:00 PM |
HB 81 HB 81 Sectional Analysis Version A |
| HB 81 Version A.PDF |
HTRA 3/2/2023 1:00:00 PM HTRA 3/7/2023 1:00:00 PM |
HB 81 |
| HB 81 Sponsor Statement.pdf |
HTRA 3/2/2023 1:00:00 PM HTRA 3/7/2023 1:00:00 PM |
HB 81 |