03/07/2023 01:00 PM House TRANSPORTATION

         HB 81-VEHICLES/BOATS: TRANSFER ON DEATH TITLE                                                                      
                                                                                                                                
1:01:05 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE  announced that the  only order of business  would be                                                              
HOUSE BILL  NO. 81, "An  Act relating to  the transfer of  a title                                                              
on the death of the owner; and providing for an effective date."                                                                
                                                                                                                                
1:02:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE asked if HB 81 impacts commercial vessels.                                                                 
                                                                                                                                
1:02:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GEORGE  RAUSCHER,  Alaska  State  Legislature,  as                                                              
prime sponsor of HB 81, answered yes.                                                                                           
                                                                                                                                
1:03:07 PM                                                                                                                    
                                                                                                                                
CHAIR  MCCABE commented  that when  HB 81 was  first heard,  there                                                              
were  no fiscal  notes.   He relayed  fiscal  notes from  previous                                                              
iterations of  the legislation;  there was a  zero fiscal  note in                                                              
2016, a  $60,000 fiscal  note in  2019, and today  the bill  has a                                                              
$70,000 fiscal  note.   He said the  quick increase  is concerning                                                              
but  there  has  been  no  indication   in  how  much  the  Alaska                                                              
Department  of  Administration (DOA)  would  make  if  it were  to                                                              
start charging  a fee  on [Transfer  On Death  (TOD) titles].   He                                                              
stated that  the fiscal  note should  be indeterminate  because it                                                              
is unknown as to what the revenue would be.                                                                                     
                                                                                                                                
1:05:00 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:05 p.m. to 1:08 p.m.                                                                       
                                                                                                                                
1:08:48 PM                                                                                                                    
                                                                                                                                
CHAIR  MCCABE relayed  that  there are  concerns  with the  fiscal                                                              
note.   He informed  members Tiffany Thomas  with the  Division of                                                              
Motor  Vehicles (DMV)  is on the  phoneline;  he asked Ms.  Thomas                                                              
about the $75,000  fiscal note and why it is  not an indeterminate                                                              
note.                                                                                                                           
                                                                                                                                
1:10:00 PM                                                                                                                    
                                                                                                                                
TIFFANY  THOMAS,  Deputy  Director, Division  of  Motor  Vehicles,                                                              
Department  of  Administration,  responded  that  the  costs  were                                                              
implemented  due to the  programmatic changes  that would  need to                                                              
be made  to implement  the title document  language that  would be                                                              
put on the title itself.                                                                                                        
                                                                                                                                
CHAIR  MCCABE pointed  out that  the verbiage  on the fiscal  note                                                              
explained  that 600  hours are  needed to  make the  changes.   He                                                              
asked Ms. Thomas to confirm that information.                                                                                   
                                                                                                                                
MS. THOMAS  answered  yes, 600 hours  is the  number estimated  by                                                              
the  DMV's program  team.   Regarding the  $75,000, the  statutory                                                              
mechanism for fees  is already in statute, so that  is why nothing                                                              
was added  into  the fiscal  note, it  was to not  change the  fee                                                              
structure.                                                                                                                      
                                                                                                                                
1:12:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  questioned how the fiscal note  can go from                                                              
zero  in 2016,  to $75,000  today.   She expressed  that it's  odd                                                              
that initially  DOA could absorb the  costs, but now it  will cost                                                              
600 hours.  She  asked Ms. Thomas how the fiscal  note can go from                                                              
zero to $75,000.                                                                                                                
                                                                                                                                
MS.  THOMAS responded  that  she  would need  to  do research  and                                                              
follow up to provide an answer.                                                                                                 
                                                                                                                                
1:13:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  C.  JOHNSON asked  if  all state  programmers  are                                                              
making $120 per hour.                                                                                                           
                                                                                                                                
MS. THOMAS  explained that the  programmers are hired  through the                                                              
DOA Office of Information Technology (OIT).                                                                                     
                                                                                                                                
1:13:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE  suggested that  the committee hear  from OIT                                                              
since  HB 81  requires  about  four months  of  work  solely on  a                                                              
change to  TOD title servicing.   She said  that is  not efficient                                                              
work and challenges the fiscal note.                                                                                            
                                                                                                                                
1:14:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  C. JOHNSON  suggested that  the committee  send an                                                              
indeterminate  fiscal   note  to  the  House   Judiciary  Standing                                                              
Committee.   He pointed  out there are  members of that  committee                                                              
in the  House Transportation  Standing Committee.   He  said sound                                                              
policy for transportation means passing HB 81.                                                                                  
                                                                                                                                
CHAIR MCCABE  offered his  understanding  that the next  committee                                                              
of referral  was to  the House State  Affairs Standing  Committee,                                                              
and he posited that committee could make the same consideration.                                                                
                                                                                                                                
1:15:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE moved  that  the fiscal  note for  HB 81  be                                                              
changed to  indeterminate for  operating expenditures  and changes                                                              
in revenues.  There being no objection, it was so ordered.                                                                      
                                                                                                                                
1:15:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  asked for clarification regarding  the next                                                              
committees of referral.                                                                                                         
                                                                                                                                
CHAIR  MCCABE answered  that  following the  House  Transportation                                                              
Standing  Committee,  HB 81  would  be heard  by  the House  State                                                              
Affairs Standing  Committee next,  and then  it could  be referred                                                              
to the  House Finance  Committee -  if the  fiscal note  cannot be                                                              
reconciled.                                                                                                                     
                                                                                                                                
1:15:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE  moved to report HB 81 out  of committee with                                                              
individual   recommendations   and   the   accompanying   amended,                                                              
indeterminate fiscal note.  There being no objection, HB 81 was                                                                 
reported out of the House Transportation Standing Committee.