SB 210-LICENSE PLATES: SPECIALTY ORGANIZATIONS  3:45:20 PM CHAIR REVAK announced the consideration of SENATE BILL NO. 210, "An Act relating to special request specialty organization registration plates." 3:45:36 PM TOM WRIGHT, Staff, Senator Mia Costello, Alaska State Legislature, Juneau, Alaska, stated that SB 210 will turn over the authority to issue specialty license plates to the Division of Motor Vehicles (DMV). He continued the introduction paraphrasing from the sponsor statement: Since 2009, the Legislature has passed eight bills that authorized specialty license plates. In some cases, multiple pieces of specialty plate legislation were rolled into one bill. For example, in the 27th Legislature, four bills were rolled into one bill that authorized six different plates. Each year, the Legislature is tasked with approving a specialty plate for the various organizations and nonprofits that request these plates. As of now, there are at least ninety-two different license plates that can be purchased at the Division of Motor Vehicles. Senate Bill 210 was introduced to remove the Legislature from having to approve specialty plates. Those duties would be turned over to the Division of Motor Vehicles under this legislation. The division would adopt regulations to allow for the issuance of the specialty plates that are sponsored by an organization that is based within the state and is tax exempt under 26 U.S.C. 501(c), is an Alaska chapter of a national organization that is tax exempt, is a department of the state or a municipality within the state. An entity requesting a plate through DMV must submit an application, pay an application fee, pay the cost of developing and issuing the specialty plate, and may be charged a fee for issuance of the specialty license plate in addition to any registration fees. 3:47:15 PM SENATOR COGHILL asked if the current statute for specialty license plates for nonprofit organizations would remain in effect or if the DMV would need to figure out the cost.   MR. WRIGHT answered that the underlying statutes would remain in place for existing specialty license plates, but the legislature would be able to make amendments. He cited Senator Stevens' specialty license plate bill to celebrate the Alaska State Council on the Arts, which the legislature could amend. CHAIR REVAK related his understanding that this bill would give DMV the ability to create specialty license plates. MR. WRIGHT answered yes. CHAIR REVAK asked him to describe the purpose of the bill. MR. WRIGHT answered that the sponsor would like the legislature to focus on other matters. 3:48:50 PM SENATOR COGHILL asked what vetting process DMV would go through for specialty license plates and how this bill would impact it. MR. WRIGHT explained that DMV would work with the requester on the design and would have a say on what is appropriate, just as it currently does for specialty license plates. He deferred further explanation to DMV. 3:50:51 PM JOANNE OLSEN, Interim Director, Division of Motor Vehicles (DMV), Department of Administration (DOA), Anchorage, Alaska, responded that the division has an administrative hearing process it uses when organizations are denied a specialty license plate. SENATOR COGHILL asked the record to reflect that an appeal process would still be in place. He said he thinks this bill is a good idea. 3:51:24 PM CHAIR REVAK asked Ms. Olsen her view of this proposal. MS. OLSEN responded that it would save time for the legislature, allow organizations to have specialty license plates for supporters to use, and simplify the process for the division. She explained that DMV would be able to establish a standard template, and the organization would add to the design. The cost would vary depending on the design complexity and color. She envisioned that DMV could keep the process simple while addressing the needs of the requesting organizations. 3:52:32 PM SENATOR WILSON asked how many licensed vehicles are in Alaska. MS. OLSEN offered to follow up with the information. SENATOR WILSON related his understanding that there are 40-41 specialty license plates. MS. OLSEN responded that there are currently 92 unique specialty license plates. SENATOR WILSON asked for a count of each of the 92 specialty license plates that have been purchased. MS. OLSEN offered to follow up with the information. 3:53:33 PM SENATOR WILSON agreed with the sponsor that legislative time could be better spent. MR. WRIGHT clarified that the sponsor does not wish to diminish the sponsorship of these bills, but the number of specialty license plates has increased to 92 and DMV can take over the task. He noted that the fiscal note shows this is a revenue enhancer. SENATOR COGHILL asked if $100 would be the new standard fee. 3:54:47 PM MS. OLSEN answered that the bill adds a new subsection that states that DMV would charge $100 for the specialty plate and subsequent replacement plates. SENATOR COGHILL offered his understanding that this increases the standard fee from $30 or $50 to $100. MS. OLSEN agreed. SENATOR COGHILL commented that it is entirely appropriate as long as people understand the cost. CHAIR REVAK related his understanding that this would not be an increase for all specialty license plates, just for new ones. MR. WRIGHT answered that is correct. CHAIR REVAK read the following from page 1, starting on line 4: (ll) Special request specialty organization plates. The department shall adopt regulations to allow for the issuance of special request specialty organization registration plates sponsored by an organization that is based in this state and is tax exempt under 26 U.S.C. 501(c), is an Alaska chapter of a national organization that is tax exempt under 26 U.S.C. 501(c), is a department of the state, or is a municipality of the state. He asked if that would be restrictive. For example, the military may have a new medal that would be excluded. MR. WRIGHT acknowledged that the language may need to be expanded, but the sponsor does not have any intention to adversely affect honoring military members. He offered to review the language. CHAIR REVAK stated agreement with the intent of the bill. SENATOR COGHILL said it would be interesting to know what other states charge for specialty license plates because the fees seems low. He suggested that the finance committee may wish to consider the fees. MR. WRIGHT agreed that if the bill makes it to finance, it would be under the committee's purview. 3:58:46 PM CHAIR REVAK opened public testimony on SB [210]. BENJAMIN BROWN, Chair, Alaska State Council on the Arts, Department of Education and Early Development, Juneau, Alaska, said Mr. Wright's testimony clarified that this would be prospective so it would not change the artistic license plate fee structure in SB 169, related to the Alaska State Council on the Arts. The arts council is interested in a different pricing point because of the tremendous demand for its specialty license plates. The arts council supports efficiencies in state government and this bill is a step in that direction, so it seems like a good idea. 4:00:48 PM CHAIR REVAK, after first determining no one else wished to testify, closed public testimony on SB 210. He said that he appreciated the sponsor introducing the bill, but that he would like to amend the language to be more inclusive. CHAIR REVAK held SB 210 in committee.