04/28/1998 01:35 PM Senate TRA

                                                                               
   CSHB 290(TRA) - LICENSE PLATES: RANCHES, FARMS, AND DAIRY                   
                                                                               
JEFF LOGAN, legislative assistant to Representative Joe Green,                 
sponsor of HB 290, explained the measure as follows.  HB 290                   
broadens the definition of who can qualify as a person for the                 
purpose of qualifying for an agricultural license plate.  Language             
on lines 12-13 refers to AS 01.10.060, which defines a person as a             
corporation, company, partnership, firm, association, organization,            
and a few other entities.  HB 290 was introduced at the request of             
one of Representative Green's constituents.  The constituent was a             
farmer who formerly qualified for the agricultural license plates              
by registering his vehicles under his company name.  The Division              
of Motor Vehicles (DMV) changed its interpretation of the statute              
and required that people registering under the company name pay the            
more expensive commercial fees.  To pay the less expensive                     
agricultural fees, he would have to register the vehicles under his            
personal name.  Representative Green believes it is not up to any              
state agency to tell any Alaska business how it will organize the              
business, whether it be a corporation, sole proprietorship, etc.,              
in order to get something that the business owner previously got               
anyway.  After about one year of trying to get DMV to change its               
procedures, Representative Green introduced the bill.                          
                                                                               
SENATOR HALFORD stated he agrees with Representative Green's                   
intent, but he noted this restriction is abused in another area                
which could be fixed under this bill.  He explained that farmers               
who have a bad year and seek seasonal employment elsewhere are                 
forced to register their farm vehicles outside of the agricultural             
program if they did not earn their primary source of income from               
farming during the year.  Senator Halford said he would like to see            
the language that requires the person's primary source of income be            
from farming deleted so that the statute would read, "vehicles                 
under 16,000 pounds, owned by a person deriving income from the                
operation of a ranch, farm, or dairy where the person resides full             
time ...."  He thought farm vehicles should not all of a sudden                
become illegally registered because the farmer took winter work.               
                                                                               
MR. LOGAN pointed out that agricultural vehicles are not on the                
road as often as commercial vehicles, as they are seasonal                     
vehicles.                                                                      
                                                                               
CHAIRMAN WARD asked if the sponsor would object to Senator                     
Halford's proposed amendment.                                                  
                                                                               
MR. LOGAN said he did not think the proposed amendment is                      
inconsistent with the goal of the legislation.                                 
                                                                               
SENATOR HALFORD moved to delete the words, "the person's primary               
source of" on line 7.                                                          
                                                                               
SENATOR LINCOLN questioned whether anyone who gets any income from,            
and lives on, a farm or ranch would be eligible to get license                 
plates for a lower fee.                                                        
                                                                               
Number 520                                                                     
                                                                               
SENATOR HALFORD explained the requirement is still restrictive in              
that a person can register a vehicle under the agricultural                    
provision provided the vehicle is used exclusively to transport the            
person's own ranch, farm or dairy products to and from market, or              
to transport supplies, commodities or equipment to be used on a                
person's ranch, farm or dairy.                                                 
                                                                               
SENATOR LINCOLN said that section would also allow a person with a             
few chickens on his/her land to register any vehicle used to                   
transport chicken feed as agricultural.  She objected to the motion            
because she stated the current language requires the person's                  
primary source of income to be from agriculture, but not one's                 
exclusive source of income. She believed the amendment would open              
up the reduced fee provision to many it is not intended for.                   
                                                                               
MR. LOGAN showed committee members a picture of a 16,000 pound                 
vehicle and stated, in regard to Senator Lincoln's concern, that it            
would not be necessary to use a 16,000 pound vehicle to transport              
chicken feed.                                                                  
                                                                               
SENATOR LINCOLN clarified the bill requires vehicles to not exceed             
16,000 pounds, therefore a person could be using a regular pick-up             
truck.  She maintained her objection to the amendment.                         
                                                                               
The motion to adopt Senator Halford's amendment carried with                   
Senators Halford, Wilken, Green, and Chairman Ward voting for the              
motion, and Senator Lincoln voting against it.                                 
                                                                               
SENATOR LINCOLN commented HB 290 is accompanies by a zero fiscal               
note that contains an asterisk signifying an indeterminate cost.               
She echoed Senator Halford's concern about not knowing the actual              
cost of a piece of legislation.                                                
                                                                               
SENATOR GREEN questioned whether the definition in the bill of                 
"agricultural" includes greenhouse nurseries.                                  
                                                                               
MR. LOGAN replied under the definition given in AS 29.45.060(c),               
greenhouses are included.                                                      
                                                                               
SENATOR GREEN moved SCSHB 290(TRA) from committee with individual              
recommendations and its accompanying fiscal note, and a letter to              
the Senate Finance Committee asking it to request an updated fiscal            
note.  There being no objection, the motion carried.