04/10/2018 03:15 PM House STATE AFFAIRS

            HB 409-DMV ID CARDS & REGISTRATION FEES                                                                         
3:57:24 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that  the next order  of business                                                               
would be HOUSE  BILL NO. 409, "An Act  relating to identification                                                               
cards; relating  to vehicle registration  fee rates;  relating to                                                               
changes  of  address;  relating to  driver's  license  fees;  and                                                               
relating to financial responsibility for motor vehicles."                                                                       
                                                                                                                                
3:58:00 PM                                                                                                                    
                                                                                                                                
CATHY  SCHLINGHEYDE,   Staff,  Representative   Jonathan  Kreiss-                                                               
Tomkins,  Alaska  State  Legislature,  advised that  HB  409  was                                                               
drafted  at  the request  of  the  Department of  Administration,                                                               
Legislative Finance  Sub-committee.  The legislation  updates and                                                               
streamlines the  statutes for greater efficiency  at the Division                                                               
of  Motor Vehicles  (DMV) and  addresses some  of the  identified                                                               
indirect  expenditures  in the  division.    He referred  to  the                                                               
fiscal note  [disbursed to the  members at the beginning  of this                                                               
hearing]  which estimates  that  the  legislation would  generate                                                               
revenue of approximately $815,000 per year.                                                                                     
                                                                                                                                
3:58:30 PM                                                                                                                    
                                                                                                                                
MS.  SCHLINGHEYDE presented  the sectional  analysis and  advised                                                               
that Section 1 was specifically  recommended by the Department of                                                               
Administration,  Legislative Finance  Sub-committee.   Section  1                                                               
standardizes the age  for senior citizen fee  waivers by changing                                                               
the age for a senior citizen identification card from 60 to 65.                                                                 
                                                                                                                                
MS.  SCHLINGHEYDE  advised that  Section  2  allows a  person  to                                                               
authorize the  Division of Motor  Vehicles (DMV) to  update their                                                               
address  based  on  the  United   States  Postal  Service  (USPS)                                                               
database.  Currently, even when  the DMV realizes that an address                                                               
was set up and  updated at the post office, it  must mail to what                                                               
it knows  is the wrong address,  the mail then bounces  back, and                                                               
the DMV then reaches out to  the person.  This section allows the                                                               
DMV to mail to the correct current address.                                                                                     
                                                                                                                                
MS.  SCHLINGHEYDE  advised that  Section  3  removes the  vehicle                                                               
registration fee exemption for amateur  radio operators, which is                                                               
approximately 44 beneficiaries per year.                                                                                        
                                                                                                                                
MS.  SCHLINGHEYDE   advised  that   Section  4  is   a  statutory                                                               
recommendation, it  is an  indirect expenditure  of approximately                                                               
$498,000  per  year.   Section  4  eliminates the  exemption  for                                                               
municipalities   and  gives   partial  exemption   to  charitable                                                               
organizations.  Therefore,  she explained, it would  be a partial                                                               
recovery of the indirect costs.                                                                                                 
                                                                                                                                
MS.  SCHLINGHEYDE advised  that Section  5 sets  the fee  for DMV                                                               
Knowledge Tests at $5 and raises  the fee for DMV Road Tests from                                                               
$15 to  $25.  She  explained that  this would both  raise revenue                                                               
for  the  state  and  increase efficiency  at  DMV  by  hopefully                                                               
reducing the "no share rates,"  which is approximately 20 percent                                                               
for the  driving test.  The  current fail rate for  the Knowledge                                                               
Test,  which has  unlimited free  attempts,  is approximately  60                                                               
percent.                                                                                                                        
                                                                                                                                
4:00:03 PM                                                                                                                    
                                                                                                                                
MS. SCHLINGHEYDE advised that Section  6 is statutory cleanup, it                                                               
is  various (indisc.)  and accident  reporting  thresholds.   The                                                               
thresholds  were  originally  set  the   same  for  DMV  and  the                                                               
Department of  Transportation &  Public Facilities  (DOTPF), that                                                               
the report  must be  set when  it is  $501.   The DOTPF  has been                                                               
updated and it  is now a $2,000 threshold, but  the DMV limit has                                                               
not been  updated or  adjusted for  inflation in  33 years.   The                                                               
threshold  is currently  set at  $501  and this  would raise  the                                                               
threshold to $2,000.                                                                                                            
                                                                                                                                
MS. SCHLINGHEYDE explained  that that amount is  also in Sections                                                               
7-10, and 13, which is updating that threshold.                                                                                 
                                                                                                                                
MS.  SCHLINGHEYDE  advised  that  Section 11  adjusts  the  SR-22                                                               
requirement,  vehicle liability  insurance document  for a  high-                                                               
risk  insurance  policy.   People  are  required to  carry  SR-22                                                               
insurance after an accident or  traffic offense, and this section                                                               
requires the person to carry  SR-22 insurance for 10 years rather                                                               
than for a lifetime as that is an undue financial hardship.                                                                     
                                                                                                                                
MS.  SCHLINGHEYDE  advised  that  Section 12  allows  for  a  new                                                               
installment payment  plan, rather than automatic  suspension of a                                                               
license  when the  license  is suspended  due  to an  outstanding                                                               
financial judgment.                                                                                                             
                                                                                                                                
MS. SCHLINGHEYDE advised  that Section 14 is  cleanup for Section                                                               
2, allows  updating DMV  with address changes  if the  person has                                                               
given  permission  to  DMV  to update  addresses  from  the  USPS                                                               
database.                                                                                                                       
                                                                                                                                
4:01:23 PM                                                                                                                    
                                                                                                                                
CHAIR  KREISS-TOMKINS noted  that  this legislation  is merely  a                                                               
starting  point,  it  is  an   amalgam  of  indirect  expenditure                                                               
recommendations  from the  Legislative Finance  Sub-committee and                                                               
the DMV recommendations.                                                                                                        
                                                                                                                                
REPRESENTATIVE WOOL referred to  Section 11 regarding SR-22s, and                                                               
said he assumes it has little to  do with the DMV and is rather a                                                               
policy call because buying SR-22  insurance is between the driver                                                               
and the insurance company, and not the DMV.                                                                                     
                                                                                                                                
MS. SCHLINGHEYDE answered that the  DMV statutes require proof of                                                               
financial responsibility  and the  driver must  submit a  form to                                                               
the DMV  showing the  SR-22 insurance was  purchased.   After ten                                                               
years,  this section  would eliminate  the requirement  to submit                                                               
that form to the DMV.                                                                                                           
                                                                                                                                
REPRESENTATIVE WOOL  advised that he  had to buy  SR-22 insurance                                                               
at one  point, but it  was for a shorter  period of time  than 10                                                               
years.  He asked whether it is  currently that if a person has an                                                               
accident, they must buy SR-22 insurance for life.                                                                               
                                                                                                                                
4:02:50 PM                                                                                                                    
                                                                                                                                
MARLA  THOMPSON,  Director,  Division of  Motor  Vehicles  (DMV),                                                               
Department   of  Administration   (DOA),  responded   that  SR-22                                                               
insurance is not  required, for most judgements, for  more than a                                                               
few years,  but some judgements  are for  a lifetime and  the DMV                                                               
wanted to change it to ten years.   She explained that it is "not                                                               
for a normal DUI SR-22 because that is normally five years."                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL  requested a  description  of  the level  of                                                               
infractions that would require lifetime SR-22 insurance.                                                                        
                                                                                                                                
MS. THOMPSON deferred to Michael Stanker, Department of Law.                                                                    
                                                                                                                                
4:03:57 PM                                                                                                                    
                                                                                                                                
MICHAEL  STANKER,  Assistant  Attorney General,  Civil  Division,                                                               
Labor & State  Affairs Section, Department of  Law (DOL), advised                                                               
that he  would have to  conduct additional research and  get back                                                               
to  the  committee  as  to  all  of  the  instances  where  SR-22                                                               
insurance  is required,  and for  the  length of  time for  those                                                               
different conditions.                                                                                                           
                                                                                                                                
[HB 409 was held over.]