02/15/2012 01:30 PM House FINANCE

HOUSE BILL NO. 10                                                                                                             
                                                                                                                                
          "An Act relating to the registration fee for                                                                          
          noncommercial trailers and to the motor vehicle                                                                       
          tax for trailers."                                                                                                    
                                                                                                                                
HOUSE BILL NO. 64                                                                                                             
                                                                                                                                
          "An Act relating to permanent motor vehicle                                                                           
          registration; and providing for an effective                                                                          
          date."                                                                                                                
                                                                                                                                
1:41:28 PM                                                                                                                    
                                                                                                                                
Co-Chair   Thomas   MOVED   to  ADOPT   proposed   committee                                                                    
substitute  for HB  64,  Work  Draft 27-LS0327\T  (Luckhaupt                                                                    
2/13/12.)                                                                                                                       
                                                                                                                                
Co-Chair Stoltze OBJECTED for purpose of discussion.                                                                            
                                                                                                                                
DARRELL   BREESE,   STAFF,  REPRESENTATIVE   BILL   STOLTZE,                                                                    
explained the purpose  for merging HB 10 and HB  64 into one                                                                    
committee  substitute was  for efficiency.  Both bills  deal                                                                    
with similar  sections of  state statutes,  therefore moving                                                                    
forward  with one  bill  would be  more  effective. The  one                                                                    
additional  change  to  the  bill would  be  to  remove  the                                                                    
state's   responsibility  to   collect  the   Motor  Vehicle                                                                    
registration  tax required  for  sixteen municipalities  and                                                                    
cities  within the  state of  Alaska. The  local legislative                                                                    
body  sets the  rate and  the Department  of Motor  Vehicles                                                                    
(DMV)  collects the  tax with  an  eight percent  collection                                                                    
fee. Since  the tax  is a  municipal or  city tax,  the bill                                                                    
shifts the collection responsibility  from the Department of                                                                    
Motor Vehicles back to the municipalities and cities.                                                                           
                                                                                                                                
Co-Chair  Stoltze asked  if the  reference  applied only  to                                                                    
vehicles  eligible  for   the  permanent  registration.  Mr.                                                                    
Breese  responded that  the language  was crafted  to remove                                                                    
all motor  vehicle tax collection  from the  department. Co-                                                                    
Chair  Stoltze  indicated  his  intent  as  sponsor  was  to                                                                    
clarify the bill as a policy question.                                                                                          
                                                                                                                                
1:44:41 PM                                                                                                                    
                                                                                                                                
Mr. Breese elaborated that the  bill establishes two sets of                                                                    
vehicle  classifications; one  for non-commercial  vehicles,                                                                    
eight years or  older where the owner can choose  to adopt a                                                                    
permanent   rather   than    bi-annual   registration,   and                                                                    
establishes a  fee rate for the  permanent registration. The                                                                    
bill   sets  a   one-time   $300  fee   for  the   permanent                                                                    
registration of a  non-commercial vehicle. Permanent vehicle                                                                    
registration  for  both  non-commercial motor  vehicles  and                                                                    
trailers  would  be  an  option,   not  mandatory,  and  the                                                                    
registration  would not  be transferable  if the  vehicle is                                                                    
sold.   The   Department   of   Motor   Vehicles   estimates                                                                    
approximately  ten  percent  of  motor  vehicle  owners  and                                                                    
twenty  percent of  trailer  owners  would choose  permanent                                                                    
registration.                                                                                                                   
                                                                                                                                
Co-Chair  Stoltze reiterated  that the  DMV numbers  were an                                                                    
estimate.                                                                                                                       
                                                                                                                                
Mr. Breese pointed out that  the DMV estimation was based on                                                                    
the number of  vehicle transactions, but agreed  it was just                                                                    
an    approximation.   Permanent    non-commercial   trailer                                                                    
registration  is   consistent  with   legislative  decisions                                                                    
regarding  commercial  trailers.   Commercial  vehicles  are                                                                    
currently  allowed  to  register  for a  $25  one-time  fee.                                                                    
Currently  the  DMV  is   charging  $30  for  non-commercial                                                                    
trailer owners every two years.  The bill establishes a one-                                                                    
time fee of $100 for non-commercial vehicles.                                                                                   
                                                                                                                                
1:48:22 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze pointed  out that  many states  follow the                                                                    
same  procedure  and there  would  be  potential changes  in                                                                    
revenue.  He  remarked  that   many  owners  register  their                                                                    
vehicles or trailers as commercial rather than non-                                                                             
commercial in order to only pay the one-time fee.                                                                               
                                                                                                                                
1:50:41 PM                                                                                                                    
                                                                                                                                
Mr. Breese referenced  the 20th legislature in  1998, HB 104                                                                    
which  created   the  permanent  trailer   registration  for                                                                    
commercial  trailers.  Co-Chair  Stoltze noted  the  logical                                                                    
reference used in the present bill.                                                                                             
                                                                                                                                
1:51:15 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg wondered  how  the license  plate                                                                    
and  tag  would work  under  this  plan. Presently,  when  a                                                                    
vehicle  is registered,  it receives  a license  plate, then                                                                    
after renewal, a tag is issued with the year and month.                                                                         
                                                                                                                                
1:52:00 PM                                                                                                                    
                                                                                                                                
WHITNEY  BREWSTER,  DIRECTOR,  DIVISION  OF  MOTOR  VEHICLES                                                                    
(DMV),  DEPARTMENT OF  ADMINISTRATION (via  teleconference),                                                                    
signified that  the DMV  does not  issue tags  for permanent                                                                    
registration of commercial trailers.  She indicated that the                                                                    
DMV  could  consider  issuing  a   tag  for  permanent  non-                                                                    
commercial trailers.                                                                                                            
                                                                                                                                
Co-Chair  Stoltze requested  any concerns  that the  DMV may                                                                    
have with this bill.                                                                                                            
                                                                                                                                
Ms.  Brewster agreed  the  bill would  be  more equable  for                                                                    
trailer  owners. As  far as  the permanent  registration for                                                                    
vehicles, the  information in  the fiscal  note is  only the                                                                    
department's  estimate on  how  many people  may choose  the                                                                    
permanent registration  option. She added that  the DMV does                                                                    
retain eight  percent for the  fees collected for  the motor                                                                    
vehicle registration  tax which is approximately  $1 million                                                                    
a year  into the  general fund. She  indicated that  the DMV                                                                    
would look further into the fee collection loss.                                                                                
                                                                                                                                
1:55:29 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  asked  if   she  saw  any  administrative                                                                    
problems for  the DMV  if the bill  is passed.  Ms. Brewster                                                                    
indicated changes would be needed in the DMV database. Co-                                                                      
Chair Stoltze  indicated after  talking with  the Department                                                                    
of Public  Safety regarding concerns,  they did  not foresee                                                                    
any problems.                                                                                                                   
                                                                                                                                
1:57:22 PM                                                                                                                    
                                                                                                                                
ALICE   EDWARDS,   DIRECTOR,   DIVISION  OF   AIR   QUALITY,                                                                    
DEPARTMENT   OF   ENVIRONMENTAL  CONSERVATION   (DEC)   (via                                                                    
teleconference),  responded that  the  DEC  had no  concerns                                                                    
with  the bill.  Co-Chair  Stoltze questioned  the need  for                                                                    
resubmitting  the  previous  fiscal  note  of  $81,000.  Ms.                                                                    
Edwards  responded that  a  new zero  fiscal  note had  been                                                                    
submitted  as the  EPA had  approved the  suspension of  the                                                                    
emission program in Anchorage.                                                                                                  
                                                                                                                                
Co-Chair Stoltze applauded the  department for the financial                                                                    
savings.                                                                                                                        
                                                                                                                                
1:59:08 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  signified   that  public  testimony  will                                                                    
remain open.                                                                                                                    
                                                                                                                                
CSHB 64(FIN)  was HEARD  and HELD  in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
2:00:46 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:09:51 PM                                                                                                                    
RECONVENED