02/28/2013 01:30 PM House FINANCE

HOUSE BILL NO. 19                                                                                                             
                                                                                                                                
     "An   Act   relating   to   permanent   motor   vehicle                                                                    
     registration;  relating  to  the registration  fee  for                                                                    
     noncommercial  trailers and  to the  motor vehicle  tax                                                                    
    for trailers; and providing for an effective date."                                                                         
                                                                                                                                
2:27:49 PM                                                                                                                    
                                                                                                                                
Co-Chair   Stoltze   relayed    some   background   on   the                                                                    
legislation.                                                                                                                    
                                                                                                                                
2:30:41 PM                                                                                                                    
                                                                                                                                
DARREL  BREESE, STAFF,  REPRESENTATIVE BILL  STOLTZE, stated                                                                    
that   the  CS   for  HB   19  had   been  changed   in  the                                                                    
Transportation Committee to remove  the final section of the                                                                    
bill  which set  a maximum  for how  much the  Department of                                                                    
Motor  Vehicles  (DMV) could  collect  for  a Motor  Vehicle                                                                    
Registration  Tax.  He  said  that Section  2  of  the  bill                                                                    
allowed for  the owners of  non-commercial vehicles,  over 8                                                                    
years-old,   to  receive   a   permanent  registration.   He                                                                    
explained that  the basic registration  fee for  the vehicle                                                                    
would be paid, plus a  $25 permanent registration fee, which                                                                    
would  be  honored for  as  long  as  the person  owned  the                                                                    
vehicle.  He relayed  that  the  permanent registration  was                                                                    
non-transferable.  He   shared  that  Section   3  addressed                                                                    
senior's ability  to receive one-year of  free registration,                                                                    
which  could  be  applied  along   with  the  $25  permanent                                                                    
registration   fee,  towards   permanent  registration.   He                                                                    
furthered  that   Section  4   offered  the   $25  permanent                                                                    
registration fee  to owners  of non-commercial  trailers. He                                                                    
continued that  Section 5 remained under  the recommendation                                                                    
of   legislative  legal   and  addressed   I/M  testing   in                                                                    
municipalities. He  continued that  Section 6  addressed the                                                                    
Motor Vehicle  Registration Tax; it established  a base rate                                                                    
for  municipalities and  communities to  use as  a guideline                                                                    
for  determining  a  registration  tax.  Section  7  allowed                                                                    
municipalities to set a motor  vehicle registration tax rate                                                                    
for permanently  registered vehicles.  He relayed  that this                                                                    
would  allow  municipalities raise  or  lower  the rate  for                                                                    
permanently registered vehicles.                                                                                                
                                                                                                                                
2:35:29 PM                                                                                                                    
                                                                                                                                
AMY   ERICKSON,  DIRECTOR,   DIVISION  OF   MOTOR  VEHICLES,                                                                    
DEPARTMENT OF  ADMINISTRATION (via  teleconference), related                                                                    
that the  DMV was responsible  for the fiscal note  and what                                                                    
the changes in revenue would be for the state.                                                                                  
                                                                                                                                
2:36:08 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze inquired  whether  the  DMV supported  the                                                                    
bill.                                                                                                                           
                                                                                                                                
Ms.  Erickson responded  that  the DMV  was  neutral on  the                                                                    
bill.                                                                                                                           
                                                                                                                                
                                                                                                                                
2:36:18 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  inquired  the  average  duration  of                                                                    
vehicle ownership in the state.                                                                                                 
                                                                                                                                
Ms. Erickson  replied that  the average  age of  vehicles on                                                                    
the road was 13 years.                                                                                                          
                                                                                                                                
Representative Wilson inquired if there  was any way to know                                                                    
how many times a specific vehicle changed ownership.                                                                            
                                                                                                                                
Ms.  Erickson responded  that  the DMV  did  not keep  those                                                                    
records.                                                                                                                        
                                                                                                                                
2:36:56 PM                                                                                                                    
                                                                                                                                
Representative  Thompson  inquired  how many  senior  exempt                                                                    
vehicles were currently on the road in Alaska.                                                                                  
                                                                                                                                
Ms. Erickson replied that she  was unsure but would get back                                                                    
to the committee with the requested information.                                                                                
                                                                                                                                
2:37:44 PM                                                                                                                    
                                                                                                                                
CYNNA  GUBATAYAO,   ASSISTANT  BOROUGH   MANAGER,  KETCHIKAN                                                                    
GATEWAY BOROUGH,  KETCHIKAN (via  teleconference), expressed                                                                    
the  borough's opposition  to HB  19. She  shared the  motor                                                                    
vehicle  taxes in  the borough  were used  to fund  the Junk                                                                    
Vehicle  Program; borough  residents  could  dispose of  one                                                                    
vehicle  per year,  with no  disposal  costs. She  concluded                                                                    
that  the borough  had a  direct nexus  between the  tax and                                                                    
solving the problems that older vehicles caused.                                                                                
                                                                                                                                
2:38:40 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze queried  the population  of the  Ketchikan                                                                    
Gateway Borough.                                                                                                                
                                                                                                                                
Ms. Gubatayao replied that it was approximately 13,000.                                                                         
                                                                                                                                
2:39:13 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze CLOSED public TESTIMONY                                                                                        
                                                                                                                                
2:39:28 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze stated that discussion  of the fiscal notes                                                                    
would take place at the next hearing.                                                                                           
                                                                                                                                
2:40:45 PM                                                                                                                    
                                                                                                                                
HB  19  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.