Legislature(2025 - 2026)BARNES 124
02/13/2025 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB18 | |
| Presentation: Alaska Long Trail, Project Overview and Update | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 18 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 18-VEHICLES/BOATS: TRANSFER ON DEATH TITLE
1:04:09 PM
CO-CHAIR CARRICK announced that the first order of business
would be HOUSE BILL NO. 18, "An Act relating to the transfer of
a title on the death of the owner; and providing for an
effective date."
1:04:54 PM
REPRESENTATIVE GEORGE RAUSCHER, Alaska State Legislature,
paraphrased from the sponsor statement for HB 18 [copy included
in the committee packet] which read as follows [original
punctuation provided]:
The process of probate in the state of Alaska can take
anywhere from six months to several years, and can
cost family members and beneficiaries thousands,
potentially tens of thousands of dollars in legal and
filing fees. While the State Legislature has already
taken great strides to reduce the costs of probate,
there is still much room for improvement. House Bill
18 continues in spirit with the Uniform Real Property
Transfer on Death Act (URPTDA), which unanimously
passed both the House and Senate in 2014. URPTDA
created the Transfer on Death (TOD) deed, which allows
for non-probate transfers of real property. TOD deeds
allow Alaskans to select a beneficiary who will
receive the property at their passing and removes that
property from the process of probate. In 2016,
legislation similar to HB 18 was introduced, but the
legislation failed to pass that session. HB 18 is
nearly identical, although it expands the concept to
apply both to vehicles and boats that are issued
titles through the state. HB 18 continues the ongoing
effort to reduce the costs of probate for Alaskans and
creates a streamlined service through the DMV through
which they can designate beneficiaries for both cars
and boats through a simple form. The TOD titles will
be available for all boats and vehicles for which the
DMV provides titles, which also includes some mobile
manufactured homes under AS 45.29.102(66). The program
will be self-sustaining through fees. At no cost to
the state, HB 18 will allow countless Alaskans to pass
down boats, vehicles, and some manufactured homes to
beneficiaries with more ease, and will help simplify
and streamline the potentially complicated, costly,
and painful process of probate following the death of
a loved one.
REPRESENTATIVE RAUSCHER advised that the Senate State Affairs
Committee has indicated "willingness to hear and advance the
bill." He argued that given the bipartisan support in the past
it should "move swiftly through the process."
1:08:17 PM
AZABEL ORDAZ, Staff, Representative George Rauscher, Alaska
State Legislature, gave the sectional analysis of HB 18 [hard
copy included in the committee packet] which read as follows
[original punctuation provided]:
Section 1:
Adds a new section under AS 05.25 that allows owners
of boats, for which the Department of Administration
(DoA) issues titles, to obtain a transfer on death
(TOD) title.
Section 2: Amends AS 13.33.101(a) to add a transfer of
a boat or vehicle by a TOD title to the existing list
of acceptable nonprobate transferable property.
Section 3: Creates a provision under AS 13.33 for a
transfer on death (TOD) title for boats and vehicles.
Creates and defines the mechanism through the Division
of Motor Vehicles (DMV), by which individuals will
obtain, revoke, or change their transfer on death
title and defines the parameters of the transfer on
death title.
(a)-(c) Obtaining a TOD Title
• Creates a provision under AS 13.33 for a transfer on
death title for vehicles and boats for which DoA
issues titles.
o This includes some manufactured homes for which the
DMV issues titles under AS 45.29.102(66). These homes
are without a permanent foundation and transportable
in one or more sections.
• Requires that the transfer of title to the
designated beneficiary occurs when the sole owner or
last surviving joint owner of the vehicle dies.
• Requires that owners of the boats or vehicles file a
form through the DMV and pay associated fees to apply
for a TOD title.
• Limits the TOD titles to two beneficiaries.
(d) TOD titles effective without notice or
consideration
Provides that TOD titles will not require notice or
acceptance by the designated beneficiary
Provides that TOD titles will not be subject to
consideration, the process by which there is an
exchange or "quid pro quo" required from the recipient
of the assets.
o Language taken from TOD deed statute under AS
13.48.060.
(e) TOD titles are nontestamentary
• States that TOD titles are nontestamentary, meaning
that the associated vehicles do not need to be
provided for in the decedents will.
(f)-(g) Revocation or Change to TOD titles.
• Provides that the owner may revoke or change the
designated beneficiary on the TOD at any time without
the beneficiary's consent.
• Explains the process by which owners may revoke or
change a TOD title.
o The owner can either assign and deliver the
certificate of title for the vehicle to another
person, thereby revoking the TOD title, or;
o file with the DMV to reissue the title without a
designated beneficiary or with a different designated
beneficiary.
(h) Designated beneficiaries right to disclaim
interest
• Allows designated beneficiaries to refuse the boat
or vehicle designated to them in a TOD title.
o Language taken from TOD deed statute under AS
13.48.100.
(i) TOD titles subject to decedent's creditors,
contracts, etc.
• Subjects the TOD title to creditor's claims against
the owner's estate, as well as to other interests,
contracts, liens, encumbrances, assignments, and other
interests.
• These interests remain attached to the boat or
vehicle after it is transferred to the designated
beneficiary.
1:12:33 PM
MS. ORDAZ continued the sectional analysis, which read as
follows [original punctuation provided]:
(j-m) Enforcing liability upon TOD titles.
• Imposes the same procedures for enforcing liability
upon TOD titles that is applied to TOD deeds under AS
13.48.110 and AS 13.48.088.
o Provides that the estate may enforce liability
against boats or vehicles with TOD titles if the
owner's estate does not cover an allowed claim.
o States that if there are multiple vehicles and/or
boats, and a liability exists in the deceased's
estate, the liability will be apportioned to each
asset in proportion to its net value.
o Requires that a proceeding to enforce a liability
must begin within 12 months of the owner's passing and
can only begin once proper notification to
beneficiaries has occurred.
o Stipulates that TOD titles do not affect rights of
ownership before the owner's death, and do not affect
rights of the designated beneficiary or creditors of
the owner(s).
o TOD titles do not give legal or equitable preference
to the designated beneficiary.
o TOD titles do not affect designated beneficiaries'
eligibility for state public assistance. (n-p) Uniform
standard of survivorship, requirements to receive TOD
title.
• Requires that the designated beneficiary survive the
previous owner by 120 hours.
• Requires that the designated beneficiary submit
proof of the owner's death and an application and
associated fees to the DMV.
• If there are two beneficiaries listed on the TOD
title, they become joint owners.
(q) TOD titles may not be changed by other instruments
• Provides that TOD titles may only be changed by the
process outlined in section 3 and not by a will or any
other instrument.
(r) Gives the DoA authority to develop regulations to
implement the TOD titles, establish necessary forms
and fees, etc.
(s) Definitions
Section 4:
Amends AS 13.48.110(c) to add a person acting on
behalf of the surviving spouse of the decedent to the
list of people who may demand to enforce liability
against the decedents' property.
Section 5:
Adds a new section to AS 28.10.275, relating to
vehicle titles, to clearly state that owners of
vehicles for which the DMV issues titles may obtain a
TOD title.
Section 6:
Gives the DoA authority to develop necessary
regulations.
Section 7:
Applies an immediate effective date to section 6 of
the bill to allow the department to develop
regulations.
Section 8:
Applies an effective date of July 1, 2025 to the
legislation except for section 7.
1:15:48 PM
REPRESENTATIVE RAUSCHER advised the committee that his chief of
staff was not available for questions.
1:16:09 PM
REPRESENTATIVE MCCABE questioned whether the proposed
legislation is exactly the same as [House Bill 81, heard during
the Thirty-Third Alaska State Legislature].
REPRESENTATIVE RAUSCHER expressed the understanding that the
proposed legislation is a refile of House Bill 81.
REPRESENTATIVE MCCABE expressed the understanding that [House
Bill 81] passed out of the House under the previous legislature.
1:16:41 PM
REPRESENTATIVE RAUSCHER, in response to a question from
Representative Stutes, expressed the understanding that HB 18 is
the same as the version of House Bill 81 that had passed out of
the House in the previous legislature. He corrected the answer
by adding that the fiscal note [for House Bill 81] had been
changed. In response to a follow-up question, he confirmed that
after the initial cost to implement the proposed legislation,
there would be no cost to the state; therefore, the fiscal note
would be zero.
1:18:29 PM
CO-CHAIR CARRICK noted the cost of implementation on the fiscal
note. She questioned whether this had been part of the previous
legislation.
REPRESENTATIVE RAUSCHER responded that the fiscal note was
changed to an indeterminate amount. He pointed out the analysis
on the fiscal note indicated that 600 hours of programming would
be needed to implement conforming information. He explained
that this was the reason for the change.
1:19:19 PM
REPRESENTATIVE TILTON clarified that if two beneficiaries were
listed on the Transfer on Death (TOD) title, they would become
joint owners.
1:20:04 PM
REPRESENTATIVE RAUSCHER, in response to a question from Co-Chair
Carrick, explained that the proposed legislation would not
include airplane transfers because aircraft would fall under
federal regulation.
1:21:12 PM
CO-CHAIR CARRICK announced that HB 18 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 18 VerA.pdf |
HTRA 2/13/2025 1:00:00 PM |
HB 18 |
| HB 18 Sponsor Statement.pdf |
HTRA 2/13/2025 1:00:00 PM |
HB 18 |
| HB 18 Sectional Analysis.pdf |
HTRA 2/13/2025 1:00:00 PM |
HB 18 |
| HB 18 Previous Letters of Support 3/2024.pdf |
HTRA 2/13/2025 1:00:00 PM |
HB 18 |
| HB 18 Ver A Fiscal Note 02.07.25.pdf |
HTRA 2/13/2025 1:00:00 PM |
HB 18 |
| 02.13.25 AK Long Trail.pdf |
HTRA 2/13/2025 1:00:00 PM |