02/13/2014 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB124 | |
| SB104 | |
| SB127 | |
| SB145 | |
| SB127 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 104 | TELECONFERENCED | |
| *+ | SB 145 | TELECONFERENCED | |
| *+ | SB 124 | TELECONFERENCED | |
| *+ | SB 127 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
February 13, 2014
9:01 a.m.
MEMBERS PRESENT
Senator Fred Dyson, Chair
Senator Cathy Giessel, Vice Chair
Senator John Coghill
Senator Bill Wielechowski
MEMBERS ABSENT
Senator Bert Stedman
COMMITTEE CALENDAR
SENATE BILL NO. 124
"An Act extending the termination date of the Council on
Domestic Violence and Sexual Assault; and providing for an
effective date."
- MOVED SB 124 OUT OF COMMITTEE
SENATE BILL NO. 104
"An Act relating to appropriations from the dividend fund;
creating the criminal fund; and providing for an effective
date."
- MOVED CSSB 104(STA) OUT OF COMMITTEE
SENATE BILL NO. 127
"An Act authorizing the commissioner of administration to enter
into agreements with agents to perform for compensation certain
transactions related to vehicles; relating to the duties of
those agents; and providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 145
"An Act relating to the Teachers' Retirement System, the
Judicial Retirement System, and the Public Employees' Retirement
System for qualified military service; relating to the
definition of 'veteran' for purposes of housing, eligibility for
veterans' loans, and preferences in state employment hiring; and
providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 104
SHORT TITLE: APPROPRIATIONS FROM THE DIVIDEND FUND
SPONSOR(s): SENATOR(s) DYSON
01/22/14 (S) PREFILE RELEASED 1/10/14
01/22/14 (S) READ THE FIRST TIME - REFERRALS
01/22/14 (S) STA, FIN
02/06/14 (S) STA AT 9:00 AM BUTROVICH 205
02/06/14 (S) Heard & Held
02/06/14 (S) MINUTE(STA)
02/11/14 (S) STA AT 9:00 AM BUTROVICH 205
02/11/14 (S) Heard & Held
02/11/14 (S) MINUTE(STA)
02/13/14 (S) STA AT 9:00 AM BUTROVICH 205
BILL: SB 145
SHORT TITLE: VETS' RETIREMENT/LOANS/HOUSING/EMPLOYMENT
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/29/14 (S) READ THE FIRST TIME - REFERRALS
01/29/14 (S) STA
02/13/14 (S) STA AT 9:00 AM BUTROVICH 205
BILL: SB 124
SHORT TITLE: EXTENDING COUNCIL ON DOMESTIC VIOLENCE
SPONSOR(s): MEYER
01/22/14 (S) READ THE FIRST TIME - REFERRALS
01/22/14 (S) STA, FIN
02/13/14 (S) STA AT 9:00 AM BUTROVICH 205
BILL: SB 127
SHORT TITLE: VEHICLE TRANSACTION AGENTS
SPONSOR(s): GIESSEL
01/22/14 (S) READ THE FIRST TIME - REFERRALS
01/22/14 (S) STA
02/13/14 (S) STA AT 9:00 AM BUTROVICH 205
WITNESS REGISTER
SENATOR KEVIN MEYER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 124
LAURIE MORTON, Executive Director
State Council on Domestic Violence and Sexual Assault
Department of Public Safety (DPS)
Juneau, Alaska
POSITION STATEMENT: Provided information about the State Council
on Domestic Violence and Sexual Assault.
KRIS CURTIS, Legislative Auditor
Legislative Audit Division
Juneau, Alaska
POSITION STATEMENT: Reported on the audit of the State Council
on Domestic Violence and Sexual Assault.
VICKI D'AMICO, Executive Director,
Sitkans Against Family Violence
Sitka, Alaska
POSITION STATEMENT: Testified in support of SB 124.
JOSHUA BANKS, Staff for Senator Dyson,
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions related to SB 104.
LESLIE HOUSTON, Deputy Commissioner
Department of Corrections (DOC)
Juneau, Alaska
POSITION STATEMENT: Answered questions related to SB 104.
STACY STEINBERG, Chief Assistant Attorney
Collections and Support Section
Civil Division
Department of Law (DOL)
Anchorage, Alaska,
POSITION STATEMENT: Offered to answer questions related to SB
104.
FORREST WOLFE, Staff
Senator Cathy Giessel
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained SB 127 on behalf of the sponsor.
MELISSA CUCULLU, General Manager
Alaska Tags and Titles
Palmer, Alaska
POSITION STATEMENT: Testified in support of SB 127.
AVES THOMPSON, Executive Director
Alaska Trucking Association
Anchorage, Alaska,
POSITION STATEMENT: Testified in support of SB 127.
AMY ERICKSON, Director
Division of Motor Vehicles (DMV)
Anchorage, Alaska,
POSITION STATEMENT: Answered questions related to SB 127.
DUANE BANNOCK, Former Director
Division of Motor Vehicles (DMV)
Department of Administration
Kenai, Alaska
POSITION STATEMENT: Testified in support of SB 127.
CURTIS THAYER, Commissioner
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Presented information about SB 145.
ACTION NARRATIVE
[Due to technical difficulties, the recording does not begin
until 9:01:45.]
9:01:10 AM
CHAIR FRED DYSON called the Senate State Affairs Standing
Committee meeting to order at 9:01 a.m. Present at the call to
order were Senators Wielechowski, Giessel, and Chair Dyson.
Senator Coghill arrived shortly thereafter.
SB 124-EXTENDING COUNCIL ON DOMESTIC VIOLENCE
9:01:31 AM
CHAIR DYSON announced that the first order of business would be
SB 124.
SENATOR KEVIN MEYER, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 124, explained that the bill extends the
termination date of the Council on Domestic Violence and Sexual
Assault by eight years to June 30, 2022. He said Legislative
Audit Division conducted an audit and recommended the eight-year
extension. The audit contains several recommendations which are
in members' packets. He opined that the audit was pretty clean.
He noted a fiscal note and said the Council receives funding
from many sources; state, federal, and interagency funds.
CHAIR DYSON referred to the recommendations and asked whether
the "statutory responsibilities" require statutory changes.
SENATOR MEYER thought the auditor would address that issue. He
said he did not believe statutory changes were necessary.
CHAIR DYSON noted that "reauthorizing an extension" is a common
occurrence and requires an audit.
LAURIE MORTON, Executive Director, State Council on Domestic
Violence and Sexual Assault, Department of Public Safety (DPS),
Juneau, Alaska, provided information about the State Council on
Domestic Violence and Sexual Assault. She reported that this
past year over 9,300 people sought services at domestic violence
and rape crisis centers. About 75 percent were victims of
domestic violence, 20 percent victims of sexual assault, 3
percent victims of stalking, and 13 percent victims of other
violent crimes.
She said the Council receives a federal grant from the Victims
of Crime Act (VOCA) for victims of "other violent crimes." About
79 percent of those who sought services were women and 17
percent were men; 68 percent were adults and 28 percent were
children.
CHAIR DYSON questioned the percentage totals.
MS. MORTON explained that there were about 4 percent of those
who sought services who did not identify their age or gender.
She continued to say that there is much community support for
the programs. Over 3,000 people donated over 78,000 hours of
service in the past year.
She related that another component of the Council is programs
for the rehabilitation of perpetrators - Batterer Intervention
Programs. There were 262 intakes this past year with 84 people
completing the program. One of the Task Force on Domestic
Violence and Sexual Assault's recommendations several years ago
was to look at the efficacy of batter intervention programs. The
Council has entered into a memorandum of agreement with the
Department of Corrections in order to look at regulations,
revise the, and provide a broader reach in Batterer Intervention
Programs.
9:07:40 AM
MS. MORTON pointed out that the Council coordinates programs
across the state, such as the Sexual Assault Response Team
(SART). Two week-long trainings are held for SART each year.
This year training was also held in the Mat-Su area, funded by
the legislature. The Council receives a federal grant called
Services, Training, Officers, and Prosecutors (STOP) for
training first responders.
She discussed the Alaska Victimization Survey. She said Dr.
Andre Rosay conducted the Survey first in 2010, which confirmed
that there was a very high rate - 58 percent - of domestic and
sexual violence in Alaska. The Study will be replicated in 2015
and it is hoped that prior-year numbers may show some decrease.
She noted a dashboard that collects and posts data from
departments and studies in one place.
9:10:08 AM
CHAIR DYSON believed that the committee will pass the bill and
it will pass both bodies. He recognized the seriousness of the
topic and complimented Ms. Morton on her efforts. He requested
comments from committee members.
SENATOR GIESSEL voiced concern about two findings from the
audit. Number 2 has to with the timely posting of public
notices, which is a fundamental role of the Council and
important to the public. Number 3 has to do with improving grant
awards and monitoring policies.
MS. MORTON explained that the public notice issue is rectified
in a way that the Council hopes provides ample time for the
public to be aware of the meetings. In February of each year
when the Council meets, it will set the schedule of meetings for
the next year, in advance. Also, the meeting schedule will be
published all at once on the Council's website. Two weeks prior
to the meetings, the Council will post them on the state public
notice website and on the Council's website.
She indicated that there were a series of vacancies and
turnovers that interfered with grant awards. Now there is a
solid staff, and a procedure has been established where the
program coordinators meet once a quarter, review the files, and
complete a peer review of each other's work and on-site
evaluations. As a last step, she signs off on the grant awards.
CHAIR DYSON asked about the first audit item.
MS. MORTON explained that the Council is required to consult
with the Department of Health and Social Services (DHSS) in the
development of policies and procedures for health care
facilities in responding to victims of domestic violence. It is
the responsibility of DHSS to do the work. She reported that
over the past few years, before she was the executive director,
there had not been a lot of work done in that area. She said she
and Commission Streur will be updating and revising those
policies and procedures.
9:13:17 AM
SENATOR WIELECHOWSKI thanked Ms. Morton for her work. He asked
whether the fiscal note of $17.7 million should be larger or
smaller, due to the inability to measure the success of the
Council. He noted the extension is for 8 years. He inquired what
a successful mission would look like in 8 years.
MS. MORTON replied that fundamental elements of victim service
providers is shelters and rape crisis centers across the state
that provide safe places for victims to go. Keeping the doors
open to those facilities is important. She said that last year
the legislature provided $250,000 for emerging programs for
training people who live in a community without a shelter, but
who can provide services to victims where they live. In 8 years,
the goal is to see more people trained as victim service
providers. Other goals are better coordination across the state
in responding to the crimes and a broader array of batterer
intervention programs. She added that it is not the Council's
responsibility to take on the role of courts or police, but it
can play an integral part in the systems working together.
9:16:26 AM
CHAIR DYSON requested more information about the 16 percent of
males who were abused.
MS. MORTON offered to find out.
CHAIR DYSON commented on the number of male juvenile sexual
assaults. He asked about trends over the years.
MS. MORTON said she has not seen trends in victims or
perpetrators; they continue to be from all ages and all
ethnicities. She noted she has seen in communities at large a
willingness to talk about the problem and to be willing to do
something to stop it.
CHAIR DYSON agreed that it is better climate for victims. He
assumed the increase in numbers might be a function of more
reporting. He thought that Senator Wielechowski's question was
skirting the edges of prevention.
9:18:50 AM
MS. MORTON pointed out that prevention is part of the Council's
responsibility. In 2009 the legislature first awarded money for
prevention. Governor Parnell increased that amount each year.
She referred to the Council's annual report which lists
prevention activities.
9:19:39 AM
KRIS CURTIS, Legislative Auditor, Legislative Audit Division,
Juneau, Alaska; reported on the audit of the State Council on
Domestic Violence and Sexual Assault. The audit of May 2013
concluded that the Council is serving the public interest and
its termination date should be extended. The report provides a
summary of the Council's organization and function and a
description of their funding sources. The audit concluded that
the Council is serving the public's interest by funding and
monitoring Alaska domestic violence and sexual assault response
programs and prevention activities. It found the Council
effectively served as the central coordinator for related
services throughout the state. It recommended the Council's
termination date be extended the maximum eight years provided
for in statute to June 30, 2022.
MS. CURTIS reported that the audit found three areas of
operational improvement; the Council agreed with those
recommendations and provided corrective action. She added that
there is information about Council expenses from FY 09 through
FY 12 and funding sources in the report.
CHAIR DYSON thanked Ms. Curtis for her work. He said he expected
the bill would pass out of committee.
VICKI D'AMICO, Executive Director, Sitkans Against Family
Violence, Sitka, Alaska, testified in support of SB 124. She
spoke highly of the Council's technical assistant, support, and
help with adhering to regulations, grant reporting, and
disbursement of funds. She stressed the importance of being
supported by an agency that is dedicated to victim safety,
abuser accountability, and prevention.
She shared that Sitka is one of the sites of the world pilot
program for prevention. She said she has seen trends of
involvement by younger people in the services and less serious
injuries because victims are leaving their situations earlier.
9:24:05 AM
CHAIR DYSON thanked Ms. D'Amico for her work. He closed public
testimony.
SENATOR GIESSEL SENATOR moved to report SB 124, labeled 28-
LS1235\A, from committee with individual recommendations and
attached fiscal note. There being no objection, the motion
carried.
9:24:54 AM
CHAIR DYSON announced the committee would stand at ease
SB 104-APPROPRIATIONS FROM THE DIVIDEND FUND
[Due to technical difficulties, the audio is not available until
9:26:24.]
9:25:43 AM
CHAIR DYSON announced that the next order of business would be
SB 104.
SENATOR GIESSEL moved to adopt the proposed CS for SB 104,
labeled 26-LS0847\R, as the working document before the
committee.
CHAIR DYSON said he would wait until his staff presented the
changes in the bill to hear if there were any objections to
adopting version R.
9:26:42 AM
JOSHUA BANKS, Staff for Senator Dyson, Alaska State Legislature,
Juneau, Alaska, addressed the changes in SB 104, version R. He
said there were a few minor changes after discussion with the
Child Support Division. He said on page 2, line 20, "and
operating costs of the Violent Crimes Compensation Board" is
added after "victims". This provision is currently taking place.
CHAIR DYSON clarified that this change is putting into statute,
that which has been the standard practice.
MR. BANKS explained that on page 4, line 1, the words "to the
crime victim compensation fund established under AS 18.67.162
for payments to crime victims and for operating costs of the
Violent Crimes Compensation Board" is added.
CHAIR DYSON added that the change brings consistency to the
wording.
MR. BANKS said on page 4, line 9 deletes "to a state-approved
rehabilitation program" and adds "to the Department of
Corrections".
MR. BANKS said on page 4, line 20 deletes "the Court System" and
adds "the Department of Corrections".
CHAIR DYSON asked what line.
MR. BANKS said line 20. He highlighted a new change found on
page 4, line 4; after "arrearages" the words "owed to a child's
custodian or guardian when the child to who a support order
applies is under 19 years of age; payments to a child's
custodian or guardian for child support arrearages under this
paragraph are limited to the amount of the dividend paid to an
eligible individual in the previous year;" were added.
9:29:59 AM
CHAIR DYSON noted Mr. Banks has worked closely with each of the
agencies and the CS reflects agency suggestions. He stressed the
importance of the aforementioned change. He mentioned the large
number of arrearages on child support. He commented on the
difficulty of deciding how to allocate child support funds. He
explained that the bill provides that current and recent victims
with profound needs are the priority for where the money should
go. This change was the recommendation from Child Support
Services Division.
MR. BANKS indicated that the language was suggested from Child
Support Services, the Department of Law, and the Violent Crimes
Compensation Board (VCCB). The language puts limits on the $100
million child support arrearage. Only children under 19 and
younger will receive money from the Criminal Fund for the
equivalent of one PFD.
CHAIR DYSON added that it would be paid annually.
9:32:30 AM
MR. BANKS said that another change is found on page 4, in
multiple references in (b) through (f). The previous version of
the bill talked about providing reports to "the department",
meaning the Department of Revenue (DOR), and DOR providing
reports to the legislature as to how much money should go from
the Criminal Fund to the various agencies. Because that is not a
job that DOR typically does, it was changed to the Office of
Budget and Management (OMB). In paragraphs (b), (c), and (d) it
states that VVCB, Child Support Service, and DOC will report to
OMB, who will use the reports to determine how much goes to each
agency and report to the legislature.
He said two changes were missed during the drafting of the CS.
He proposed conceptual amendments that would add, on page 3,
line 15, after "victims;" the words "and operating costs of the
Violent Crimes Compensation Board." The same language would be
added on page 4, line 16, after "compensable claims."
9:34:19 AM
CHAIR DYSON indicated that his intention was to adopt the
committee substitute and then the conceptual amendments,
depending on the will of the committee.
He asked if there is an objection to the acceptance of the
committee substitute. Seeing none, the R version of the bill was
before the committee.
SENATOR GIESSEL moved to adopt the two conceptual amendments to
SB 104, labeled LS-0847\R, on page 3, line 15, and on page 4,
line 16, to add "and operating costs of the Violent Crimes
Compensation Board. There being no objection, the conceptual
amendments were adopted.
9:35:48 AM
SENATOR COGHILL asked if there was a fiscal impact from the
changes in version R.
MR. BANKS asked if Senator Coghill was asking whether the change
from DOR to OMB would result in new expenses. He pointed out
that there was a $15,000 fiscal note in version Y, but it would
change to a zero note under version R.
CHAIR DYSON questioned if the fiscal note would remain at
$15,000.
MR. BANKS indicated that it would now be a zero fiscal note.
CHAIR DYSON noted that the bill has a Senate Finance Committee
referral next.
SENATOR COGHILL reiterated his concern about the financial
impact.
SENATOR DYSON suggested the change could have an impact on the
Department of Corrections (DOC) because they have been receiving
roughly $13 million annually and a large amount of that will now
go to the victims. Monies that are left over will go to DOC. He
reported that DOC said the increase in the amount of the PFD
will offset the loss. He asked if, under the Affordable Care
Act, Medicaid and Medicare are available for the care of
inmates.
MR. BANKS did not know.
SENATOR DYSON repeated the question for DOC.
9:38:53 AM
LESLIE HOUSTON, Deputy Commissioner, Department of Corrections
(DOC), Juneau, Alaska, answered questions related to SB 104. She
said DOC is working with the Department of Health and Social
Services (DHSS) to pursue clauses under the Affordable Health
Care Act that may include a small number of the prison
population to be eligible for reimbursement for both Medicaid
and Medicare.
CHAIR DYSON voiced appreciation for DOC's cooperation on the
bill.
9:40:33 AM
STACY STEINBERG, Chief Assistant Attorney, Collections and
Support Section, Civil Division, Department of Law (DOL),
Anchorage, Alaska; offered to answer questions related to SB
104.
CHAIR DYSON thanked Ms. Steinberg for her team's efforts on the
bill.
9:41:23 AM
SENATOR GIESSEL moved to report CSSB 104(STA), version 28-
LS0847\R with conceptual amendments, from committee with
individual recommendations and attached fiscal notes. There
being no objection, CSSB 104(STA) was reported from the Senate
State Affairs Standing Committee.
CHAIR DYSON, sponsor of SB 104, thanked everyone for working on
the bill. He stated that this legislation is one of the more
significant pieces of legislation he has contributed. The bill
will help many victims of crime.
SB 127-VEHICLE TRANSACTION AGENTS
9:42:54 AM
SENATOR DYSON announced that the next item of business would be
SB 127.
9:43:19 AM
FORREST WOLFE, Staff for Senator Cathy Giessel, Alaska State
Legislature, Juneau, Alaska, explained SB 127 on behalf of the
sponsor. He said SB 127 aims to reduce the Division of Motor
Vehicle's (DMV) work, thereby increasing its efficiency and
making customer lines shorter through the use of Advanced
Business Partnerships (ABPs) contracted to perform certain
transactions statutorily mandated to the DMV. It would outsource
certain services to the private sector. Currently, businesses
that offer these services are paying the fees for these
transactions.
He said SB 127 allows businesses to retain administrative costs
for transactions they are already conducting. This is necessary
in the interest of fairness because private businesses should
not be footing the bill for assisting the state by providing the
services. By allowing businesses to retain these costs, there is
an increased incentive for businesses to provide the services
more frequently or to begin offering the services.
He pointed out that this is not a new concept in Alaska. It is
already being used by the Department of Fish and Game in
allowing private businesses to sell and issue hunting and
fishing licenses. He continued to say, in the face of budget
shortfalls, strategies like SB 127 are an effective way to
reduce government through innovative use of the private sector.
He concluded it is good for the government, for businesses, and
for the public. He urged support of SB 127.
9:45:32 AM
SENATOR WIELECHOWSKI understood that businesses have been
providing this service for many years.
MR. WOLFE said that was correct.
SENATOR WIELECHOWSKI inquired how much the service fee is now.
MR. WOLFE said that is left up to the businesses.
SENATOR WIELECHOWSKI inquired if SB 127 would result in a loss
to the state of $1.2 million per year.
MR. WOLFE said yes.
SENATOR WIELECHOWSKI noted that the bill does not have a Senate
Finance Committee referral.
MR. WOLFE agreed that it did not.
SENATOR WIELECHOWSKI summarized that the state is giving $1.2
million to businesses for doing work that they have already been
doing for years.
MR. WOLFE agreed. He added that it is more of a fairness issue
to the private sector.
9:46:58 AM
SENATOR WIELECHOWSKI pointed out that the businesses were
already charging a service fee. He maintained that the state is
transferring $1.2 million of the people's money to companies for
doing work they have been doing for years and were getting
nothing in return.
MR. WOLFE indicated that the bill would help save the state
labor costs at DMV and would assist the public's not having to
wait in line at DMV.
SENATOR WIELECHOWSKI asked for evidence of personnel savings to
the state in the fiscal note.
MR. WOLFE said that is not reflected in the fiscal note.
9:48:28 AM
SENATOR GIESSEL explained that approximately 25 percent of DMV's
work load is performed by businesses that have been facilitating
licenses and footing the administrative cost. She noted letters
of support for SB 127.
CHAIR DYSON noted that in a diverse state such as Alaska, there
are a lot of small communities that might open a boutique
registration shop within another business as a service to
clients.
CHAIR DYSON opened public testimony.
9:49:46 AM
MELISSA CUCULLU, General Manager, Alaska Tags and Titles,
Palmer, Alaska, testified in support of SB 127. She related that
her business has four convenient locations in high traffic areas
for ease of service in Anchorage, Wasilla, and Fairbanks. She
said she was approached in the summer of 2004 to open a
privatized DMV office in Wasilla to meet a need the state could
not. Between September of 2004 and December of 2013, agents
processed 341,000 transactions generating over $30 million in
state revenue, saving Alaskans a minimum of 20 years waiting in
line.
She explained that on a daily basis, branches receive 100 to 400
phone calls, the majority of which pertain to drivers' licenses,
required documents, and DMV hours and locations. The calls do
not correlate to income for the firm. With the increase in phone
calls, the firm needed an upgraded phone system and a dedicated
employee whose function is to answer customer questions and
navigate the state website.
She concluded that the bill will assist the company with credit
card processing fees, the required technology and equipment, and
overhead costs, allowing for expansion to better meet customer
needs. She thanked the committee for its time and consideration
of SB 127.
9:51:52 AM
SENATOR WIELECHOWSKI asked Ms. Cucullu if she charges a service
fee.
MS. CUCULLU replied that they charge a service fee based on the
transaction; $20 for a registration renewal, $25 for a transfer
of title, and $30 for commercial fees.
SENATOR WIELECHOWSKI assumed that the company received at least
a $20-to-$30 service fee for the 300,000 transactions.
MS. CUCULLU said that was correct.
SENATOR WIELECHOWSKI asked if those are standard rates and if
the business is limited by what it can charge.
MS. CUCULLU replied that the state does not dictate fees to be
charged. The fees are standard amongst businesses.
SENATOR WIELECHOWSKI inquired if SB 127 would allow the business
to collect 15 percent. He asked how much the fees total.
MS. CUCULLU remarked that the fees are based on the transaction.
For a duplicate registration, the fee is $2, a duplicate tag or
plate is $5, a registration for transfer of title would be $115,
and a commercial transaction is based on the weight of the
vehicle.
CHAIR DYSON said this is eye-opening.
9:54:29 AM
AVES THOMPSON, Executive Director, Alaska Trucking Association
(ATA), Anchorage, Alaska, testified in support of SB 127. He
related his company's involvement as DMV partners that
facilitate the handling of DMV transactions. He maintained that
in order to continue to provide that service, ATA must generate
more revenue to maintain and grow the business. Each day since
2006 ATA has processed transactions with no compensation other
than nominal service fees. He said DMV provides some supplies,
such as title, registration forms, tag and plates. In order to
meet the demands of DMV services, ATA provides personnel and
time. Compensation became an issue when the business started to
grow and more income was needed. He said ATA has had to borrow
money to make DMV payment schedules, and has not missed a
deadline since 2006.
He related that in 2013 ATA processed more than 11,000
transactions and generated more than $1.6 million in fees and
local taxes, of which, $1.1 million in fee revenue went to DMV.
He said he would like to see the commission rate in line 13, on
page 1, be the same for all partners and be memorialized in
statute. He concluded that it is a matter of fairness to share
the revenues with DMV's partners.
9:58:20 AM
AMY ERICKSON, Director, Division of Motor Vehicles, Anchorage,
Alaska, answered questions related to SB 127. She expressed
appreciation for the sponsor's desire to codify the business
relationships DMV has been participating in since 1995 with the
first emissions testing service. That service acted as a DMV
agent and provided registration renewal services. She spoke of
DMV's relationship with Alaska Tags and Titles and other
services. In early 2000 DMV opened its document processing
program to dealerships, financial institutions, and stores. The
partnerships no longer include emissions testing services, but
allow businesses to administer other DMV services. She concluded
that this legislation would make official DMV's practices of
partnering with private business to conduct its title and
registration services and should positively impact existing and
future business partnerships.
CHAIR DYSON asked Ms. Erickson to respond to Senator
Wielechowski's concern about loss of revenue to DMV.
MS. ERICKSON responded that DMV does not have a position on the
15 percent charge. It would mean a loss of $1.2 million to the
general fund - to all of Alaskans. She noted that DMV is receipt
supported.
10:00:58 AM
SENATOR WIELECHOWSKI asked if there are parameters related to
business partner service fees and what the general range of fees
is.
MS. ERICKSON replied that DMV puts no guidelines on the fees
businesses can charge. She said she did request a list of fees
each of the for-profit partners' charges. She said transactions
for registration fees range from $12 to $20, plus $20 to the
state for registration.
SENATOR WIELECHOWSKI asked about a chart that shows DMV revenue
sources from 1997 to 2007. He pointed out that 57.8 percent of
the revenue was generated from DMV offices in 1997. That number
peaked at 61 percent and then dropped to 45.8 percent in 2007.
In that same period of time, the business partners' source of
revenue increased from 10.8 percent to 28.3 percent. He
suggested that more people are going to the business partners.
He concluded that those companies do not need a monetary
incentive to provide DMV services because they are making money
from service fees.
MS. ERICKSON commented that the document was not provided by DMV
and she could not speak to it.
10:03:36 AM
SENATOR GIESSEL indicated it is noteworthy that the public is
choosing the more convenient location being provided by the
public sector.
CHAIR DYSON asked if the public is aware of the comparative
prices when weighing convenience against a higher cost at a
business provider.
SENATOR GIESSEL speculated that the cost is on the renewal form,
yet the public is choosing to go to the small businesses.
10:04:45 AM
DUANE BANNOCK, Former Director, Department of Motor Vehicles
(DMV), Department of Administration, Kenai, Alaska; testified in
support of SB 127. He stated that the goal of DMV, at the time
he was director, was to decrease the amount of time the public
spent in line at DMV. He said a solution was to expand the DMV
business partnership program. He referred to the chart, saying
Senator Wielechowski is correct that in 2007, there was a
decrease of revenue in DMV offices and an increase in business
partner revenue. He opined that the program was doing exactly
what it was designed to do. He shared a personal story about his
use of a business partner. He testified in support of SB 127 and
said the concept is not new.
10:07:15 AM
CHAIR DYSON set aside SB 127 temporarily.
SB 145-VETS' RETIREMENT/LOANS/HOUSING/EMPLOYMENT
10:08:00 AM
CHAIR DYSON announced the consideration of SB 145.
CURTIS THAYER, Commissioner, Department of Administration,
Juneau, Alaska, presented information about SB 145. He explained
that there are over 75,000 veterans and 25,000 active military
with their families in Alaska. The bill was introduced by the
Governor to rectify three main provisions in statute. First,
there is a hiring preference for veterans, which the state has
not revised since the Vietnam War. SB 145 would bring this
provision up to date and in line with federal definitions.
He said the second revision concerns Alaska Housing Finance. It
allows the federal definition of a veteran to also be used by
the state for the Alaska Housing Program and for future
federally funded veteran programs.
Thirdly, the state is not in compliance with the Heroes Earnings
Assistance and Relief Tax (HEART) Act, passed by Congress in
2008. The bill would provide benefits to the family of a state
employee in the reserves, who is called up to active duty and is
killed. The family would receive state benefits the employee
would have received if they had remained employed. He pointed
out that the state is out of compliance on these issues and
there is an audit coming in 2015.
COMMISSIONER THAYER noted a zero fiscal note because the
aforementioned situation has never occurred. He called SB 145 a
"clean up bill."
CHAIR DYSON asked Commissioner Thayer if he knows of any
opposition to the bill.
COMMISSIONER THAYER answered no.
10:11:52 AM
CHAIR DYSON announced the committee would stand at ease.
CHAIR DYSON [held SB 145 in committee.]
SB 127-VEHICLE TRANSACTION AGENTS
[Due to technical difficulties, the recording began again at
10:14.]
CHAIR DYSON returned to SB 127 and public testimony. He
described his positive experiences with DMV.
10:14:32 AM
CHAIR DYSON suspected DMV business partners gain business from
DMV-related traffic.
SENATOR COGHILL asked if DMV has a good working relationship
with the vendors.
MS. ERICKSON said it was a cordial relationship.
10:16:18 AM
CHAIR DYSON closed public testimony.
10:16:30 AM
SENATOR COGHILL brought up the delta to the cash flow of the
state. He inquired about the value of this service to Alaskans,
aside from convenience.
SENATOR GIESSEL noted that letters of support for SB 127 provide
evidence of a qualitative benefit, rather than a quantitative
benefit. A variety of users, such as cab companies, trucking
organizations, and others, appreciate the convenience and use
private vendors a lot.
SENATOR COGHILL agreed that DMV has improved the convenience of
their services, but there are still many in-person requirements.
In Fairbanks, the DMV office is 18 miles away, whereas, a vendor
is only 6 miles away. He agreed with Chair Dyson that it is
about serving Alaskans better. He spoke in support of the bill.
CHAIR DYSON said snowmobile dealers allow registration. Dealers
largely provide for a service that is related to their business.
10:19:10 AM
SENATOR COGHILL moved to report SB 127 from committee with
individual recommendations and attached fiscal notes.
SENATOR WIELECHOWSKI agreed that vendors are convenient for
consumers. He voiced concern that the businesses are already
getting money for transactions and should not be paid more. He
did not think it was fiscally prudent for the state to pay $1.2
million to businesses for DMV services. He suggested that the
bill have a Senate Finance Committee referral. He said he will
vote "do not pass" on SB 127, as it is currently written.
SENATOR GIESSEL countered that the bill provides an opportunity
to reduce the size of government and encourages the private
sector to take on more pieces of government; it provides revenue
to and convenience for, the community.
CHAIR DYSON shared some of Senator Wielechowski's concern. He
opined that businesses will not raise fees due to competition,
so they are asking for a cut from DMV to subsidize business,
instead. He noted that several businesses reported on a need to
upgrade their equipment and technology in order to continue to
provide services.
10:22:19 AM
SENATOR GIESSEL remarked that it is a quality issue of
convenience. The public is willing to pay a few more dollars for
the convenience. She opined that the loss of $1.2 million to DMV
has actually been a gain to DMV all this time because companies
have been providing the service all along.
CHAIR DYSON asked Ms. Erickson if DMV endorses SB 127.
MS. ERICKSON replied that DMV is neutral on the bill. She
appreciated that it would codify what DMV is already doing in
practice.
CHAIR DYSON asked if the administration is comfortable with the
net loss to the general fund.
MS. ERICKSON said she has not had any conversations with the
Department of Revenue or the commissioner about that.
SENATOR WIELECHOWSKI asked Ms. Erickson if she stated SB 127
would codify what DMV does in practice.
MS. ERICKSON said agreements are in place with business partners
and the bill would make them official.
SENATOR WIELECHOWSKI asked if DMV is compensating businesses for
15 percent of the proceeds now.
MS. ERICKSON said DMV does not currently compensate businesses.
10:25:20 AM
CHAIR DYSON asked if the fees businesses charge for service are
currently codified.
MS. ERICKSON said fees are not codified. She apologized for
making the previous blanket statement.
SENATOR WIELECHOWSKI summarized that, currently, companies are
allowed to charge a service fee. The bill allows that to
continue, plus companies will be allowed 15 percent of the
proceeds.
MS. ERICKSON agreed.
10:26:22 AM
CHAIR DYSON announced that the committee would stand at ease.
10:27:30 AM
SENATOR COGHILL withdrew the motion to report SB 127 out of
committee.
CHAIR DYSON announced that SB 127 would be held in committee.
10:27:55 AM
There being no further business to come before the committee,
Chair Dyson adjourned the Senate State Affairs Standing
Committee at 10:27 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 124 Sponsor Statement.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 124 |
| SB 124A.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 124 |
| SB124-DPS-CDVSA-02-07-14.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 124 |
| SB 124 DPS Council on Domestic Violence and Sexual Assault Audit 2013 (2).pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 124 |
| CS SB 104(STA) Sponsor Statement.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 104 |
| CSSB 104 (STA).pdf |
SSTA 2/6/2014 9:00:00 AM SSTA 2/13/2014 9:00:00 AM |
SB 104 |
| CS SB 104(STA) Section Analysis.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 104 |
| SB104CS(STA)-DOA-VCCB-02-07-14.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 104 |
| SB104CS(STA)-LAW-CIV-02-07-14.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 104 |
| SB104CS-DOR-PFD-02-10-14.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 104 |
| SB104-DOR-CSSD-02-01-14.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 104 |
| SB104-DOA-DOF-01-13-14.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 104 |
| SB104-DOC-OC-01-21-14.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 104 |
| Leg. Research - Restitution.pdf |
SSTA 2/6/2014 9:00:00 AM SSTA 2/13/2014 9:00:00 AM |
SB 104 |
| SB0145A.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 145 |
| SB 145 - VeteransBill_Sectional.docx |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 145 |
| SB145-DCCED-DED-01-17-14.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 145 |
| SB145-DOA-DOP-01-20-14.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 145 |
| SB145-DOA-DRB-01-20-14 (2).pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 145 |
| SB145-DOA-DRB-01-20-14.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 145 |
| SB145-DOR-AHFC-1-21-14.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 145 |
| SB145-Supporting Document-DOA Talking Points.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 145 |
| SB145-Supporting Document-Buck Consultants.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 145 |
| SB 127 Sponsor Statement.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 127 |
| SB 127 Ver A.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 127 |
| SB 127 Sectional Analysis.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 127 |
| SB127-DOA-DMV-02-07-2014.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Alaska Auto Dealers Association Support Letter (2).pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Alaska Transportation Unlimited Support Email.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Alaska Transportation Unlimited Support Letter.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Carlile Transportation Systems Support Letter.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - DMV Revenue Sources.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Duane Bannock Email.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Golden North Van Lines Support Letter.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Kenworth Alaska Support Letter.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Mike Moeller Support Letter.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - MV Transportation Support Letter.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Totem Ocean Trailer Express Support Letter.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - TrailerCraft Support Letter.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents -Jeremy Miller Carlile Transportation Systems Support Letter.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Alaska Tags and Titles Revenue and Transactions by Fiscal year.pdf |
SSTA 2/13/2014 9:00:00 AM SSTA 2/20/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Scott Hicks Support Letter.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |
| SB 127 Support Documents - Alaska Tags and Titles Overall Revenue and Transactions.pdf |
SSTA 2/13/2014 9:00:00 AM |
SB 127 |