Legislature(2011 - 2012)BUTROVICH 205
03/15/2011 01:00 PM Senate TRANSPORTATION
| Audio | Topic |
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| Start | |
| SB93 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 93 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 15, 2011
1:00 p.m.
MEMBERS PRESENT
Senator Albert Kookesh, Chair
Senator Joe Thomas, Vice Chair
Senator Dennis Egan
Senator Linda Menard
Senator Charlie Huggins
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 93
"An Act relating to special request specialty organization
registration plates; and providing for an effective date."
- MOVED SB 93 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 93
SHORT TITLE: SPECIALTY LICENSE PLATES
SPONSOR(s): STATE AFFAIRS
02/21/11 (S) READ THE FIRST TIME - REFERRALS
02/21/11 (S) STA, TRA
02/22/11 (S) STA AT 9:00 AM BUTROVICH 205
02/22/11 (S) Heard & Held
02/22/11 (S) MINUTE(STA)
03/01/11 (S) STA RPT 2DP 2NR
03/01/11 (S) DP: WIELECHOWSKI, PASKVAN
03/01/11 (S) NR: GIESSEL, MEYER
03/01/11 (S) STA AT 9:00 AM BUTROVICH 205
03/01/11 (S) Moved SB 93 Out of Committee
03/01/11 (S) MINUTE(STA)
03/15/11 (S) TRA AT 1:00 PM BUTROVICH 205
WITNESS REGISTER
SENATOR BILL WIELECHOWSKI
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Sponsor of SB 93.
KARLA HART, Staff
Senator Bill Wielechowski
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Provided information on SB 93.
JEFFERY MITTMAN, Executive Director
ACLU-Alaska
Anchorage, AK
POSITION STATEMENT: Testified that SB 93 will likely pass
constitutional review if it remains viewpoint neutral.
STACY OATES, Administrative Officer
Division of Motor Vehicles
Department of Administration
Anchorage, AK
POSITION STATEMENT: Answered questions related to SB 93.
ACTION NARRATIVE
1:00:32 PM
CHAIR ALBERT KOOKESH called the Senate Transportation Standing
Committee meeting to order at 1:00 p.m. Senators Huggins, Egan,
Thomas, and Kookesh were present at the call to order.
SB 93-SPECIALTY LICENSE PLATES
1:03:16 PM
CHAIR KOOKESH announced the consideration of SB 93 relating to
specialty license plates.
1:03:38 PM
SENATOR BILL WIELECHOWSKI, sponsor of SB 93, said he got the
idea to streamline the specialty license plate process several
years ago. Rather than a legislator filing a new bill each time
a constituent requests a specialty plate, the entire process
could be turned over to the Division of Motor Vehicles (DMV). A
number of specialty license plate bills were introduced this
year and as chair of the State Affairs committee he decided this
was time and place to address the issue. He approached the DMV
and received an enthusiastic response.
1:04:31 PM
SENATOR MENARD joined the hearing.
SENATOR WIELECHOWSKI confirmed that this does not take away the
ability of any legislator to file in the future for a specialty
plate. It's just the process that would be different. DMV would
adopt regulations to allow it to issue specialty plates and the
organization would need to meet certain criteria such as
submitting registration fees for a minimum number of plates.
About half the states have a system in place where 501(c)(3)
nonprofits or similar groups can request a specialty plate from
the state DMV. His staff talked to at least one of those states
and learned that the process works well.
SENATOR MENARD asked if would require DMV to hire additional
staff.
SENATOR WIELECHOWSKI said the fiscal note is zero; the cost of
the license plates will offset the costs.
SENATOR MENARD asked how many states have adopted this process.
SENATOR WIELECHOWSKI said he believes 20 other states, but he
would defer to his staff.
CHAIR KOOKESH said he'd take committee questions first.
SENATOR EGAN thanked the sponsor and his staff for the common
sense sponsor statement.
1:07:47 PM
SENATOR THOMAS commented that he can't imagine that this won't
cost something and he wonders why the state doesn't just say it
isn't going to do this anymore. Then people can get whatever
attachment they want for their license. These advertisements
could be nationally produced.
SENATOR WIELECHOWSKI said he thought of two bills; this one and
another that eliminated specialty plates. If the committee feels
that's a better route, he said he would be open to the
suggestion.
SENATOR EGAN asked about putting a specialty plate on the front
and a regular plate on the back as other states do.
SENATOR WIELECHOWSKI said he believes that Alaska law requires a
plate on both the front and back and two separate plates would
likely cost more.
1:10:54 PM
SENATOR EGAN said it costs the state more to produce the front
and back license and lots of people have only one.
CHAIR KOOKESH pointed out that some plates are fund raisers,
cancer for example, and he would be reluctant to get rid of
those.
SENATOR WIELECHOWSKI said this bill doesn't address that; if
there was a desire, a legislator could still file a bill to have
a certain amount go to a particular cause. He noted that Alaska
has about 100 specialty plates right now.
CHAIR KOOKESH said he brought it up because of the comment that
specialty license plates could be eliminated altogether. Some of
these plates bring in money for worthy causes.
1:12:50 PM
KARLA HART, staff to Senator Wielechowski, said specialty
license plates are sweeping the country; Alaska has over 100.
Modern technology makes them easy to develop and manufacture.
Specialty plates developed through the Legislature are unique
and the costs vary. Legislatively created fundraising plates
require the DMV to track and request for re-appropriation, small
and varied amounts of money. One bill might have a $30 plate
with excess revenue going to a fundraiser and another might be a
$100 plate with excess revenue going back into the general fund.
There is disparity by virtue of the process and how plates have
been developed.
Other plates require the DMV to verify that a person qualifies
for a particular plate such as presenting evidence that the
owner served in combat. This can create a burden on the DMV.
There is a better way. About half the states allow
administrative approval for license plates and most of those
states also allow the Legislature to issue license plates.
Pennsylvania appeared to have the most straightforward approach
and this legislation is modeled on that law. It gives the DMV
authority to develop a procedure for administrative review and
award of specialty license plates. DMV would be required to
develop a standard template so that all specialty plates are
readable and recognizable by law enforcement. Standard
regulations, fees and procedures would apply so that an
organization that wants a specialty plate will know what it
needs to accomplish in order to get the plate. This will be a
cost-savings for the state as the administrative
responsibilities of confirming eligibility, collecting and
accounting for the funds for the nonprofit, and developing the
license plate artwork and design are transferred to the
sponsoring organization. These costs aren't huge but they are
time-consuming.
DMV processing of plate applications will be streamlined as
applications will be submitted in batches by the sponsoring
organization. DMV considers this legislation revenue neutral.
The $30 specialty-plate registration fee covers the cost of
producing and issuing specialty plates with a cushion to cover
inflation for a number of years. If the fees were increased in
the future this allows an overall change, not piecemeal as is
the case now. This does not preclude the Legislature from
issuing further specialty license plates; it does provide a
simple and straightforward option for an organization or
interest group that has a desire to create a specialty license
plate.
MS. HART said she hasn't seen any indication that this resulted
in increased staff cost in other states. In large part that's
due to batching and that the administrative part is handled by
the organization itself, not division staff. With regard to
saying no to specialty plates, she said California created
specialty plates strictly for money making and not for charity.
It appears that program is on hiatus, but in general states are
trending to the standardize template. With regard to a plate on
only one bumper, it is state law to have a plate on both
bumpers, she stated.
1:21:36 PM
SENATOR THOMAS asked who would decide what is appropriate for a
specialty plate if this authority were ceded to the DMV.
MS. HART said DMV has already developed regulations and a
procedure for the existing six-letter personalized license plate
system. The director indicated that the division has experience
screening what might be inappropriate and would be well capable
of making determinations on these specialty plates.
SENATOR MENARD asked how much revenue these specialty plates
bring.
MS. HART said plate sales vary but there are more military
plates than any others. In 2009 about 2,450 Army plates were
sold; about 300 University of Alaska Fairbanks (UAF) plates have
been sold; and just fewer than 190 have been sold for the
University of Alaska Anchorage (UAA). There are 9 Pearl Harbor
survivor plates in the state and 10 prisoner of war (POW)
plates.
SENATOR WIELECHOWSKI offered to provide a complete list.
SENATOR MENARD said she did some quick calculations and believes
that it's worthwhile if $9,000 goes to Cancer Awareness or the
NRA, but she doesn't want to spend considerable time if only 25
people participate.
1:26:57 PM
JEFFERY MITTMAN, Executive Director, ACLU-Alaska, said he
submitted written testimony on SB 93. Generally, he said, where
there is mixed government and individual speech there are First
Amendment issues. Were the Legislature to pass legislation that
is not viewpoint neutral, it would run into infirmities but SB
93 likely will meet constitutional review, he stated.
1:28:38 PM
STACY OATES, Administrative Officer, Division of Motor Vehicles,
Department of Administration, said she was available for
questions.
SENATOR THOMAS said he's trying to figure out how this would
generate revenue for a charity or specialty organization.
MS. OATES explained that the organization would collect the $30
fee for the plate and could add whatever additional amount it
wanted. Only the $30 would be transmitted to the DMV so the
organization would get its money up front.
SENATOR MENARD mentioned the license plate bill she introduced
and asked if it would cost $80 if she were to get an NRA plate.
SENATOR WIELECHOWSKI said bills under the current system, like
SB 2, actually create more work for DMV. If DMV collects $50 it
would put $20 into a separate but not dedicated savings account.
The Legislature then decides if it wants to appropriate that
money to the organization. Under SB 93 the organization would
collect the $50 and transmit $30 to the DMV for each license
plate and keep $20 dollars. The bill might create efficiencies.
1:32:06 PM
CHAIR KOOKESH stated his intention to move the bill and asked
for a motion.
1:32:21 PM
SENATOR MENARD moved to report SB 93 from committee with
individual recommendations and attached fiscal note(s). There
being no objection, it was so ordered.
1:32:33 PM
There being no further business to come before the committee,
Chair Kookesh adjourned the meeting at 1:32 p.m.
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