SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE March 25, 1996 1:40 p.m. MEMBERS PRESENT Senator John Torgerson, Chairman Senator Randy Phillips, Vice Chairman Senator Tim Kelly Senator Fred Zharoff Senator Lyman Hoffman MEMBERS ABSENT All members present COMMITTEE CALENDAR CS FOR HOUSE BILL NO. 272(FIN) "An Act relating to municipal taxation of motor vehicles; and providing for an effective date." SENATE BILL NO. 206 "An Act relating to welfare reform by establishing the Alaska Family Independence Program; repealing the aid to families with dependent children and job opportunity and basic skills programs; relating to an exemption to Alaska Wage and Hour Act for certain work activities of the Alaska Family Independence Program; relating to the duty to support children of minor parents; relating to certain licenses and applications for a license for persons who are not in substantial compliance with orders, judgments, or payment schedules for child support; relating to an exemption to the state procurement code for certain services for the general relief program and Alaska Family Independence Program; relating to eligibility for day care benefits administered by the Department of Community and Regional Affairs; authorizing the Department of Health and Social Services to operate a public assistance program consistent with the Alaska Family Independence Program under federal waivers and providing certain immunity from liability for activities of that program; amending Alaska Rule of Civil Procedure 90.3; and providing for an effective date." PREVIOUS SENATE COMMITTEE ACTION HB 272 - No previous action to record. SB 206 - See Community & Regional Affairs minutes dated 1/31/96, 2/19/96. WITNESS REGISTER Representative Mark Hanley State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Prime Sponsor of HB 272 Kevin Ritchie, Executive Director Alaska Municipal League 217 2nd St. Juneau, AK 99801 POSITION STATEMENT: Testified in support of HB 272 Juanita Hensley, Chief, Driver Services Division of Motor Vehicles Department of Public Safety P.O. Box 20020 Juneau, AK 99811-0020 POSITION STATEMENT: Testified in support of HB 272 ACTION NARRATIVE TAPE 96-18, SIDE A Number 001 CSHB 272(FIN) MUNICIPAL MOTOR VEHICLE TAX  CHAIRMAN TORGERSON called the Senate Community & Regional Affairs Committee meeting to order at 1:40 p.m. He introduced CSHB 272(FIN) as the first order of business. Number 014 R EPRESENTATIVE MARK HANLEY , prime sponsor of HB 272, explained the legislation is a flexibility tool for municipalities. Under current statute, there is a fee schedule for a motor vehicle registration tax that local communities are allowed to participate in if they choose. The state collects the fee for the municipalities and charges an 8 percent administrative fee for that collection. He noted a number of communities opt into the program and a number of communities do not. HB 272 will allow the municipalities to change their own motor vehicle registration rate. The municipality would be required to pass an ordinance in support of an increase or decrease, and provide written notice to the department at least one year before the change would take place. A change could be made once every two years. The municipality would also have to pay a one-time fee to the state for programming changes. Number 065 KEVIN RITCHIE , Executive Director, Alaska Municipal League, said the legislation is a top priority of both the Alaska Conference of Mayors and the Alaska Municipal League. He pointed out it shouldn't be perceived that this would mean an increase in the tax in some communities, in fact, some communities are looking at it as a way to lower the rates. Number 082 JUANITA HENSLEY , Division of Motor Vehicles, Department of Public Safety, stated the department supports the legislation. Number 085 SENATOR ZHAROFF moved that CSHB 272(FIN) be passed out of committee with individual recommendations. SENATOR RANDY PHILLIPS objected. SENATOR ZHAROFF withdrew his motion. SENATOR TORGERSON stated the committee would take a brief at ease. Number 100 SENATOR TORGERSON called the meeting back to order. SENATOR ZHAROFF renewed his motion to pass CSHB 272(FIN) out of committee with individual recommendations. SENATOR KELLY stated he has some real doubts about the wisdom of the legislation and does not support it at this time, but he knows it will be a matter that will be handled by the Senate Finance Committee. Hearing no objection to the motion, the Chairman stated CSHB 272(FIN) would move out of commmittee with individual recommendations. Number 120 SB 206 WELFARE REFORM SENATOR TORGERSON brought SB 206 before the committee as the next order of business. He noted at the last hearing on the bill there were several concerns brought up as to the application of the bill as it relates to Native communities and Native organizations. A letter was sent to the Department of Health & Social Services requesting clarification of certain points. The department responded that a lot of the questions couldn't be answered because of waivers, Congress and other stipulations that have yet to be determined. It is his opinion that this was a broad-based approach to such a comprehensive bill, so he had a Community & Regional Affairs CS drafted that basically deletes Section 47.27.070, "Coordination with Alaska Native Organizations with Tribal Family Assistance Programs." It also defines "qualified entity" as municipalities, other political subdivisions of the state, nonprofit corporations under AS 10.20, or combinations of these. On page 33, line 35, "local governments" is changed to "municipalities" for consistency. Number 152 SENATOR KELLY moved that CSSB 206(CRA) be adopted. Hearing no objection, the motion carried. SENATOR KELLY moved that CSSB 206(CRA) be passed out of committee with individual recommendations. Hearing no objection, the Chairman stated CSSB 206(CRA) would move from committee with individual recommendations. There being no further business to come before the committee, the meeting was adjourned at 1:50 p.m.