Legislature(1995 - 1996)
04/27/1995 03:05 PM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 28
An Act repealing an additional fee for motor vehicle
registration not conducted by mail and limiting motor
vehicle emissions inspection to once every two years.
Co-chairman Halford directed that SB 28 next be brought on
for discussion. Senator Donley explained that the purpose
of the bill is two-fold. The first is change of the
inspection and maintenance program for certification to a
biennial rather than an annual basis. He asked that this
section, only, be the one moved with the bill. Remaining
sections within the bill are not interdependent and have
generated increasing concern. Both the Dept. of
Environmental Conservation and the division of motor
vehicles have indicated support for the bill. With the
additional jurisdictional capability, they believe they can
sell biennial testing to the federal EPA. Alaska is the
only state that does annual testing. California conducts
biennial testing statewide. Movement to biennial testing
would save Alaskans time and money.
Co-chair Halford inquired regarding fines and fees within
the bill. Senator Donley responded that the legislation
increases the current $75 fine to $200. Ron King,
Department of Environmental Conservation testified that the
current fine is a class A misdemeanor for which a complaint
must be filed in court. The fine can amount to $5.0 and one
year in jail. The proposed change would make it a citation
and not require court action. He stated that the Dept of
Environmental Conservation has extended the vehicle
inspection program to commuters to and from the Matanuska
Valley and achieved 75% compliance. He said that 2,200
vehicles have been inspected. The division of motor
vehicles reports that 2700 commute. Some are under
investigation as class A misdemeanors.
Juanita Hensley, Chief, Driver Services, Division of Motor
Vehicles, Dept of Public Safety, said the bill would bring
in $2.55 million in additional revenue. She explained that
in 1994 the $10 fee was waived for 15% of 6,500 vehicles
registered in the state. The additional revenue is derived
from doing away with waiver of the $10 fee. The final
source of new revenue would be new vehicles or out-of-state
vehicles registered for the first time in Alaska. These
vehicles would pay the increased fee because the original
transaction involving a title cannot be done by mail. In
1994 there were approximately 140,000 registrations. This
would generate $1.4 million in revenue. The total revenue
from all these sources would be $2.5 million. Senator
Rieger expressed support for giving a credit for registering
by mail rather than a penalty for going into the division of
motor vehicles to register. Co-chair Halford inquired
concerning how to make the legislation revenue neutral. Ms.
Hensley responded that the status quo would make it revenue
neutral.
Senator Sharp MOVED to adopt amendment no. 1. Ms. Hensley
stated that in Anchorage people can register their cars at
emission testing stations. One station in Anchorage is
currently not charging the $10 fee. Approximately 150
registrations are processed daily through the stations.
They process the work for the DMV, and if they collect the
$10, they keep it. They have gone to the expense of putting
in computers and hook ups to accomplish the work. The
Legislative Budget and Audit Committee approved $100.0 to
pay for the data processing charge-back and for required
data storage.
There was considerable discussion of extending the
registration period to two years. Mr. King stated that the
department has the ability to go to a two-year period. The
department's intention has been to move to that time frame
when possible. It is contingent upon Anchorage and
Fairbanks attaining standards. He attested to recent
changes in terms of reliability of automobiles, and noted
that with the enforcement provisions in the proposed bill,
the department can begin working on cases and achieving
greater compliance. These items are key to EPA acceptance
of the program change. The Clean Air Act will not allow the
state to be less stringent. Mr. King reiterated that with
increased enforcement and compliance and newer technology
cars, the department can extend testing to a two-year period
and make the argument that there is no decrease to the
overall effectiveness of the program.
Ms. Hensley noted that there are 631,000 vehicles registered
in Alaska. She stated that deletion of sections 1,3,4,5,
and 6 would render the bill revenue neutral and maintain the
status quo. Emission program portions relating to biennial
testing would remain in place. No objection being heard,
amendment no. 1 was ADOPTED.
Senator Donley MOVED to adopt the proposed amendment to
render the bill revenue neutral by deleting sections 1,3,5,
and 6, as well as a conforming amendment that sec. 3 reflect
the statutory status quo. He also included need to insert
the word "not" after the word "or" in amendment no. 1 to
conform the earlier adopted amendment to changes proposed by
amendment no. 2. Senator Rieger OBJECTED. He suggested
that the bill could be made revenue neutral by not deleting
language on page 2, lines 10, 11, and 12, which refers to
allowing a waiver of the $10 fee for "a good cause based on
criteria established in regulations by the department." It
would keep the status quo but invert the fee structure
eliminating the penalty and giving a credit instead. Ms.
Hensley noted that Sections 10 and 11 should reflect new
section numbers. The department would like to be given the
capability to serve the public so that neither the public
nor workers are burdened further. That was the initial
reason for inclusion of the $10 fee in earlier legislation.
Fiscal notes for both the Dept. of Public Safety and Dept.
of Environmental Conservation are accurate. In response to
a question from Co-chairman Halford, Ms. Hensley advised
that the department is neutral on the amendment. Senator
Rieger OBJECTED to the conforming amendment. He voiced
support for maintaining the status quo but said there should
be a credit for renewal by mail rather than a penalty for
going to the DMV in person. He proposed an alternative way
to make the bill revenue neutral by raising the $10 in the
original base fee and eliminating the $10 surcharge. Ms.
Hensley noted that the department has regulations for the
waiver program under provisions of good cause. Co-chairman
Halford called for a show of hands. Amendment No. 2 FAILED
on a vote of 3 to 2 with 1 abstention.
Senator Rieger MOVED to adopt status quo language relating
to the waiver at page 2, lines 9, 10, 11, and 12. Co-
chairman Halford called for a show of hands. The motion
FAILED on a vote of 1-4.
Senator Donley MOVED to rescind action in failing to adopt
amendment no 2. With no debate, the committee voted 4 to 1
with 1 abstention to rescind its action on amendment no. 2.
Senator Donley then MOVED for adoption of amendment no. 2.
Co-chairman Halford called for a show of hands. Amendment
no. 2 was ADOPTED on a vote of 4 to 2. Senator Sharp MOVED
for passage of CSSB 28 (FIN) with individual recommendations
and attached fiscal notes. Senator Rieger OBJECTED. On a
vote of 5 to 1, CSSB 28 (FIN) was REPORTED OUT of committee
with a revised $58.8 fiscal note from the Dept of Public
Safety and a $250.0 note from the Dept of Environmental
Conservation. Senators Donley and Sharp signed the
committee report with a "do pass" recommendation. Co-
chairman Halford and Senators Phillips, Rieger, and Zharoff
signed "no recommendation."
ADJOURNMENT
The meeting was adjourned at approximately 7:20 p.m.
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