HB 347-MOTOR VEHICLE INSURANCE & NOTICE                                                                                       
                                                                                                                                
[Contains discussion of HB 383.]                                                                                                
                                                                                                                                
8:39:50 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced that the  next order of business was HOUSE                                                               
BILL  NO.  347,  "An  Act relating  to  mandatory  motor  vehicle                                                               
insurance,  license suspensions,  and notices  relating to  motor                                                               
vehicles and driver's licenses."                                                                                                
                                                                                                                                
CHAIR  SEATON offered  his recollection  of the  end of  the last                                                               
committee meeting as follows:                                                                                                   
                                                                                                                                
     When  we  last concluded  we  had  rescinded action  in                                                                    
     adopting 7a  ....  So, Amendment  7 is before us  and I                                                                    
     am not  offering 7a.  And  I want to give  everybody an                                                                    
     explanation  of why  not.   For  forfeiture of  vehicle                                                                    
     that is  available to  the court, there  is a  "may" in                                                                    
     the current  statute.  This  amendment would  have made                                                                    
     it mandatory on the  second offense; however, a vehicle                                                                    
     could  have been  wrecked, the  state  would have  been                                                                    
     required  to  forfeit,  take   the  forfeiture  of  the                                                                    
     vehicle, and would  have been then required  to pay off                                                                    
     the  lien   on  the   vehicle.    And   so,  unintended                                                                    
     consequences  we try  to catch.    So, 7a  will not  be                                                                    
     offered.                                                                                                                   
                                                                                                                                
CHAIR SEATON announced that Amendment 7b has been offered.                                                                      
                                                                                                                                
        *  Sec.  6. AS 28.40  is  amended  by adding  a  new                                                                  
     section to read:                                                                                                           
          Sec. 28.40.080. Impoundment of motor vehicle when                                                                   
     arrested  for  certain offenses.  On  the  arrest of  a                                                                  
     person for  a violation of  AS 28.15.291, AS 28.33.030,                                                                    
     28.33.031,  AS 28.35.030,   or  28.35.032,   the  motor                                                                    
     vehicle used in the commission  of the offense shall be                                                                    
     impounded. If  the motor vehicle is  not forfeited, the                                                                    
     motor vehicle shall be held  for six months, unless the                                                                    
     person is acquitted of the  offense. The cost of towing                                                                    
     and storage  of the vehicle  is a lien on  the vehicle.                                                                    
     If  another  person  claims an  ownership  or  security                                                                    
     interest in the motor  vehicle and establishes that the                                                                    
     interest predated  the offense and was  acquired by the                                                                    
     other  person  in  good  faith,   the  vehicle  may  be                                                                    
     released to  that other person  if the person  pays the                                                                    
     accrued cost of towing and storage of the vehicle."                                                                        
                                                                                                                                
8:41:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved Amendment  1 to Amendment  7b, to                                                               
delete the sentence beginning on page  3, line 15 [as numbered on                                                               
the amendment], which read as follows:                                                                                          
                                                                                                                                
     "If  the  motor vehicle  is  not  forfeited, the  motor                                                                    
     vehicle  shall  be  held for  six  months,  unless  the                                                                    
     person is acquitted of the offense."                                                                                       
                                                                                                                                
CHAIR SEATON asked  if there was any objection to  Amendment 1 to                                                               
Amendment 7b.  There being none, it was so ordered.                                                                             
                                                                                                                                
8:42:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG stated  his understanding  that he  had                                                               
objected to Amendment 7b and, thus, removed his objection.                                                                      
                                                                                                                                
8:42:46 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked if there  was further objection  to Amendment                                                               
7b [as  amended].  There  being none, Amendment 7b,  [as amended]                                                               
was adopted.                                                                                                                    
                                                                                                                                
8:43:29 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON,  in  response to  a  request  from  Representative                                                               
Gardner  to  review  the  outcome   of  the  committee's  actions                                                               
regarding  impoundment,  indicated  that the  amendment  language                                                               
regarding  forfeiture had  not been  adopted,  but the  amendment                                                               
language regarding impoundment had.  He offered further details.                                                                
                                                                                                                                
8:45:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  asked  what  happens  if  a  vehicle  is                                                               
impounded and never claimed.                                                                                                    
                                                                                                                                
8:45:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  related  that  Representative  Gardner                                                               
could find the answer to her question in AS 28.10.502.                                                                          
                                                                                                                                
8:47:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  moved to report  HB 347, as  amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal  notes.   There  being  no  objection,  CSHB                                                               
347(STA) was  reported out  of the  House State  Affairs Standing                                                               
Committee.