Legislature(2011 - 2012)BUTROVICH 205
01/27/2011 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB31 | |
| SB33 | |
| SB18 | |
| SB26 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 18 | TELECONFERENCED | |
| *+ | SB 26 | TELECONFERENCED | |
| = | SB 31 | ||
| = | SB 33 | ||
SB 26-FEE/TAX EXEMPTION FOR CERTAIN VEHICLES
9:40:04 AM
CHAIR WIELECHOWSKI announced consideration of SB 26.
GENEVEIVE WOJTUSIK, aide to Senator Lesil McGuire, explained
that SB 26 would exempt from motor vehicle registration fees and
taxes those vehicles fueled solely by alternative fuels. She
stated this is a progressive approach to presenting incentives
to the public for using vehicles that utilize new technology.
Other benefits are improving air quality, and the potential for
new jobs. She stated that the availability of plug-in vehicles
will be expanding rapidly, and Alaska should be in the
forefront.
9:42:03 AM
SENATOR PASKVAN moved to adopt work draft committee substitute
(CS) for SB 26, labeled 27-LS0291\B, as the working document.
9:43:23 AM
CHAIR WIELECHOWSKI objected for purposes of discussion.
MS. WOJTUSIK explained the changes in the CS, which include a
change in the title and a definition of alternative fuels.
CHAIR WIELECHOWSKI asked about the fiscal note.
9:44:13 AM
WHITNEY BREWSTER, Director, Division of Motor Vehicles,
Department of Administration, Anchorage, AK, spoke to the fiscal
note, which requests $20,000 for programming to modify the DMV
database to capture information regarding fuel type. She stated
they are not able to determine what the loss of revenue would be
to the state, because the information on type of fuel used is
not currently captured. She believes that the loss of revenue
will be small at first, but will increase as alternative fueled
cars gain popularity. She noted that DMV does collect motor
vehicle registration tax, which is currently $100 per vehicle.
Beyond that, the DMV also collects motor vehicle registration
tax on behalf of local municipalities. They are currently
collecting for 16 municipalities. The DMV does retain eight
percent of the motor vehicle registration tax collected on
behalf of municipalities, but the rest of those fees go to the
municipalities.
CHAIR WIELECHOWSKI asked if municipal tax is collected in
addition to state tax.
MS. BREWSTER responded that municipalities set their own tax
through ordinance, and that the $100 registration fee goes
directly to the general fund.
SENATOR PASKVAN asked if the DMV does collect sales tax on auto
sales.
MS BREWSTER responded that the DMV does not currently collect
sales tax. Municipalities set fees based on the year of vehicle.
The basic $100 registration fee goes to the state general fund,
and the tax collected based on year of the vehicle goes to the
municipality.
9:50:06 AM
CHAIR WIELECHOWSKI asked if the department has a position on SB
18.
MS. BREWSTER responded that the department is neutral.
SENATOR WIELECHOWSKI removed his objection and announced that
version B was before the committee.
SENATOR MEYER asked if hybrid cars could be added.
MS. BREWSTER replied that they could.
CHAIR WIELECHOWSKI expressed a desire to identify the 16
communities that would be affected to see what the impact would
be.
SENATOR MEYER asked how many hybrid vehicles are currently in
use in Alaska.
MS. BREWSTER responded that there are presently 1,560 Ford
Fusions registered with the DMV. Since there are two types of
Ford Fusions and only one type is a hybrid, it is impossible for
the DMV to know how many hybrid vehicles are in use.
SENATOR PASKVAN asked if passing this just for vehicles that are
on the road today, would result in a $200,000 loss to the state.
MS. WOJTUSIK responded that SB 26 applies only to cars purchased
after October 1, 2010.
CHAIR WIELECHOWSKI noted that very few cars would be eligible
right now, and stated that he would like to see a cost-benefit
analysis.
9:55:08 AM
CHAIR WIELECHOWSKI opened public testimony.
DANIEL R. FRAKES, Manager, General Motors, stated that GM
supports SB 26. He noted that hybrid and plug-in tax incentives
have played a key role in the development and acceptance of
alternative technology vehicles. As with any new technology, the
first generation tends to be expensive, and consumers are wary
of anything unfamiliar, so incentives help them overcome this
anxiety. Once subsequent generations are developed, economies of
scale take effect, and incentives can be phased out. Current
incentives include incentives towards the purchase price,
waivers for state income tax, license and registration fee
exemptions, and infrastructure incentives for the installation
of new technology.
9:58:11 AM
CHAIR WIELECHOWSKI asked if Alaska is one of only three states
that don't have incentives.
MR. FRAKES said that is true. This takes into account hybrids as
well as electric vehicles. He noted that the Chevrolet Volt was
launched in Dec 2010 to selected markets, and GM announced today
that it will be available nationally by the end of 2011, ahead
of the original schedule. He said that incentives on the
federal, state, and local level are a win-win across the board,
and that they help customers adapt to new technology, help our
country, states and cities get plug-in ready, and help lower
costs to industry.
SENATOR PASKVAN asked what phase-out criteria might apply to
incentives.
MR. FRAKES responded that they have seen programs starting to
phase out in 2014 - 2015.
SENATOR MEYER asked if incentives are offered because
alternative fuel cars cost more. For instance, what is the cost
of a Volt?
MR. FRAKES stated that cars with hybrid systems, such as the
Volt, are about three to four thousand above a comparably
equipped vehicle. The base price of a volt is about $41,000, and
with the federal incentives that are available the price goes
down to about $33,000.
10:05:08 AM
SENATOR MEYER asked how electric cars hold up in cold weather.
MR. FRAKES responded that both hot and cold temperature extremes
affect batteries, and that both range and driving conditions are
affected. GM does offer an 8-year warranty on the battery pack.
CHAIR WIELECHOWSKI asked if the range diminishes over time.
MR. FRAKES answered that as a battery is used, its life
diminishes, which is why the 8-year warranty period exists.
CHAIR WIELECHOWSKI asked why an insurance discount is offered in
forty-seven states, with Alaska being one of three where it is
not offered.
MR. FRAKES said he didn't know why, but would try to provide the
information.
CHAIR WIELECHOWSKI closed public testimony and held SB 26 in
committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 18 Sectional.pdf |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |
| SB 18 Legislative Research Report 90 Day Session.pdf |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |
| SB 18 Legislation Passed 1979-2010.pdf |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |
| SB 18 Interim Meetings.pdf |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |
| SB 18 Sponsor Statement.pdf |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |
| SB 18 Fiscal Note.pdf |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |
| SB 18 Candidates 2000-2010.pdf |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |
| SB 18 Session Days by State.pdf |
SSTA 1/27/2011 9:00:00 AM |
|
| SB 18 History Length of Sessions.pdf |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |
| SB 18 History Length of Sessions CHART.pdf |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |
| SB 18 House 90-Day Evaluation Survey.PDF |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |
| SB 26 Committee Substitute.PDF |
SSTA 1/27/2011 9:00:00 AM |
Fee/Tax Exemption for Certain Vehicles SB 26 |
| SB 26 Fiscal Note.pdf |
SSTA 1/27/2011 9:00:00 AM |
Fee/Tax Exemption for Certain Vehicles SB 26 |
| SB 26 Sponsor Statement.PDF |
SSTA 1/27/2011 9:00:00 AM |
Fee/Tax Exemption for Certain Vehicles SB 26 |
| SB 26 Ford Motor Company Presentation.PDF |
SSTA 1/27/2011 9:00:00 AM |
Fee/Tax Exemption for Certain Vehicles SB 26 |
| SB 18 Opposing Document - fax Lynn Willis.pdf |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |
| SB18 Voter_Turnout 1976-2010.pdf |
SSTA 1/27/2011 9:00:00 AM |
Duration of Regular Legislative Sessions SB 18 |