05/07/2003 09:01 AM Senate FIN

                                                                                                                                
     HOUSE BILL NO. 170(efd fld S)                                                                                              
     "An Act increasing certain motor vehicle registration fees."                                                               
                                                                                                                                
                                                                                                                                
This was  the first  hearing for  this bill  in the Senate  Finance                                                             
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken noted that the  House Rules Committee presents this                                                             
legislation  at the request  of the Governor.  He stated that  this                                                             
bill would  increase motor  vehicle registration,  title, and  lien                                                             
filing fees.                                                                                                                    
                                                                                                                                
DUANE BANNOCK, Director, Division  of Motor Vehicles, Department of                                                             
Administration testified via teleconference from an offnet location                                                             
in Anchorage to note that while  the current vehicle licensing fees                                                             
have "barely changed" in thirty years, the expenses associated with                                                             
providing the service  have been increasing. He explained  that one                                                             
of the  three primary sections  addressed by  the bill pertains  to                                                             
non-commercial vehicles, which account for approximately 70 percent                                                             
of  the  licensed  vehicles  in the  State.  He  stated  that  this                                                             
classification  of  vehicles  would  be assessed  a  $100  biennial                                                             
registration  fee, which he  stated would be  a slight increase  in                                                             
fees. Furthermore,  he shared that  existing pick-up truck  or non-                                                             
pick-up  truck  subsections   within  the  non-commercial   vehicle                                                             
classification would be eliminated.                                                                                             
                                                                                                                                
Mr. Bannock  continued that  the second  section addressed  in this                                                             
legislation specifies  that commercial vehicles would  experience a                                                             
ten-dollar  annual   registration  fee  increase.   He  noted  that                                                             
commercial  vehicle owners  would have the  option of paying  their                                                             
fees on an annual or biennial basis.                                                                                            
                                                                                                                                
Mr.  Bannock noted  that the  third section  would  provide for  an                                                             
increase in title, duplicate title, and lien fees.                                                                              
                                                                                                                                
Senator  Taylor asked for  more information  regarding how  vehicle                                                             
weight would  affect the registration  fees charged for  commercial                                                             
vehicles, as specified in Section 2 of the bill.                                                                                
                                                                                                                                
Mr.  Bannock  responded   that  the  State  has  established   four                                                             
commercial class fee structures, based on vehicle weight. He stated                                                             
that the amount  of the increase  being proposed would equate  to a                                                             
ten-dollar  across  the  board annual  increase  of  current  fees.                                                             
Additionally, he noted that an existing one-dollar annual reduction                                                             
incentive would be eliminated.                                                                                                  
                                                                                                                                
Senator  Bunde  moved  to  report  the  bill  from  Committee  with                                                             
individual recommendations and accompanying fiscal note.                                                                        
                                                                                                                                
Senator  Taylor objected  to  the motion.  He  voiced concern  that                                                             
issues might develop regarding  a disproportionate fee between some                                                             
of the various classes of commercial  vehicles such as semi-tractor                                                             
trailers.                                                                                                                       
                                                                                                                                
Senator Taylor withdrew his objection.                                                                                          
                                                                                                                                
There being  no further objection;  HB 170(efd fld S)  was REPORTED                                                             
from Committee  with  zero fiscal  note #1 from  the Department  of                                                             
Administration.