HOUSE BILL NO. 10 "An Act relating to the registration fee for noncommercial trailers and to the motor vehicle tax for trailers." HOUSE BILL NO. 64 "An Act relating to permanent motor vehicle registration; and providing for an effective date." 1:41:28 PM Co-Chair Thomas MOVED to ADOPT proposed committee substitute for HB 64, Work Draft 27-LS0327\T (Luckhaupt 2/13/12.) Co-Chair Stoltze OBJECTED for purpose of discussion. DARRELL BREESE, STAFF, REPRESENTATIVE BILL STOLTZE, explained the purpose for merging HB 10 and HB 64 into one committee substitute was for efficiency. Both bills deal with similar sections of state statutes, therefore moving forward with one bill would be more effective. The one additional change to the bill would be to remove the state's responsibility to collect the Motor Vehicle registration tax required for sixteen municipalities and cities within the state of Alaska. The local legislative body sets the rate and the Department of Motor Vehicles (DMV) collects the tax with an eight percent collection fee. Since the tax is a municipal or city tax, the bill shifts the collection responsibility from the Department of Motor Vehicles back to the municipalities and cities. Co-Chair Stoltze asked if the reference applied only to vehicles eligible for the permanent registration. Mr. Breese responded that the language was crafted to remove all motor vehicle tax collection from the department. Co- Chair Stoltze indicated his intent as sponsor was to clarify the bill as a policy question. 1:44:41 PM Mr. Breese elaborated that the bill establishes two sets of vehicle classifications; one for non-commercial vehicles, eight years or older where the owner can choose to adopt a permanent rather than bi-annual registration, and establishes a fee rate for the permanent registration. The bill sets a one-time $300 fee for the permanent registration of a non-commercial vehicle. Permanent vehicle registration for both non-commercial motor vehicles and trailers would be an option, not mandatory, and the registration would not be transferable if the vehicle is sold. The Department of Motor Vehicles estimates approximately ten percent of motor vehicle owners and twenty percent of trailer owners would choose permanent registration. Co-Chair Stoltze reiterated that the DMV numbers were an estimate. Mr. Breese pointed out that the DMV estimation was based on the number of vehicle transactions, but agreed it was just an approximation. Permanent non-commercial trailer registration is consistent with legislative decisions regarding commercial trailers. Commercial vehicles are currently allowed to register for a $25 one-time fee. Currently the DMV is charging $30 for non-commercial trailer owners every two years. The bill establishes a one- time fee of $100 for non-commercial vehicles. 1:48:22 PM Co-Chair Stoltze pointed out that many states follow the same procedure and there would be potential changes in revenue. He remarked that many owners register their vehicles or trailers as commercial rather than non- commercial in order to only pay the one-time fee. 1:50:41 PM Mr. Breese referenced the 20th legislature in 1998, HB 104 which created the permanent trailer registration for commercial trailers. Co-Chair Stoltze noted the logical reference used in the present bill. 1:51:15 PM Representative Guttenberg wondered how the license plate and tag would work under this plan. Presently, when a vehicle is registered, it receives a license plate, then after renewal, a tag is issued with the year and month. 1:52:00 PM WHITNEY BREWSTER, DIRECTOR, DIVISION OF MOTOR VEHICLES (DMV), DEPARTMENT OF ADMINISTRATION (via teleconference), signified that the DMV does not issue tags for permanent registration of commercial trailers. She indicated that the DMV could consider issuing a tag for permanent non- commercial trailers. Co-Chair Stoltze requested any concerns that the DMV may have with this bill. Ms. Brewster agreed the bill would be more equable for trailer owners. As far as the permanent registration for vehicles, the information in the fiscal note is only the department's estimate on how many people may choose the permanent registration option. She added that the DMV does retain eight percent for the fees collected for the motor vehicle registration tax which is approximately $1 million a year into the general fund. She indicated that the DMV would look further into the fee collection loss. 1:55:29 PM Co-Chair Stoltze asked if she saw any administrative problems for the DMV if the bill is passed. Ms. Brewster indicated changes would be needed in the DMV database. Co- Chair Stoltze indicated after talking with the Department of Public Safety regarding concerns, they did not foresee any problems. 1:57:22 PM ALICE EDWARDS, DIRECTOR, DIVISION OF AIR QUALITY, DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC) (via teleconference), responded that the DEC had no concerns with the bill. Co-Chair Stoltze questioned the need for resubmitting the previous fiscal note of $81,000. Ms. Edwards responded that a new zero fiscal note had been submitted as the EPA had approved the suspension of the emission program in Anchorage. Co-Chair Stoltze applauded the department for the financial savings. 1:59:08 PM Co-Chair Stoltze signified that public testimony will remain open. CSHB 64(FIN) was HEARD and HELD in committee for further consideration. 2:00:46 PM AT EASE 2:09:51 PM RECONVENED