02/24/2014 08:00 AM Senate FINANCE

SENATE BILL NO. 132                                                                                                           
                                                                                                                                
     "An Act relating to motor vehicle registration fees."                                                                      
                                                                                                                                
8:58:25 AM                                                                                                                    
                                                                                                                                
TALLY  TEAL, STAFF,  SENATOR  ANNA  FAIRCLOUGH, offered  the                                                                    
sponsor statement for SB 132(copy on file):                                                                                     
                                                                                                                                
     Currently, Alaska Statute  28.10.411 exempts a resident                                                                    
     from a  vehicle registration fee  if they are  over the                                                                    
     age of  65; however, the statute  requires the resident                                                                    
     to  be 65  "on January  1 of  the year  the vehicle  is                                                                    
     registered." This  requirement disqualifies individuals                                                                    
     who turn 65  later in the year from  receiving the same                                                                    
     benefit as their peers.                                                                                                    
                                                                                                                                
     Senate  Bill 132  will  allow any  resident  who is  65                                                                    
     years  old   at  the  time  of   registration  to  take                                                                    
     advantage of  this fee exemption. It  is important that                                                                    
     we  clarify the  intent to  provide a  lifetime vehicle                                                                    
     registration to Alaskans when they reach age 65.                                                                           
                                                                                                                                
8:59:43 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy  asked if there  were a minimal  numbers of                                                                    
vehicles that could be registered.                                                                                              
                                                                                                                                
Ms.  Teal  replied  that  there  was  a  maximum  number:  1                                                                    
vehicle.                                                                                                                        
                                                                                                                                
9:00:32 AM                                                                                                                    
                                                                                                                                
Senator Olson offered a conflict  of interest because he was                                                                    
over 65 years old.                                                                                                              
                                                                                                                                
9:00:48 AM                                                                                                                    
                                                                                                                                
Senator Olson  asked how  many people  would be  affected by                                                                    
the bill.                                                                                                                       
                                                                                                                                
Ms. Teal  responded that  the number  was unknown.  She said                                                                    
that there were just over  32,000 people who currently had a                                                                    
vehicle registered under the exemption.                                                                                         
                                                                                                                                
9:01:16 AM                                                                                                                    
Senator  Olson   wondered  whether  there  would   be  undue                                                                    
hardship caused by not passing the bill.                                                                                        
                                                                                                                                
Ms. Teal replied that she did not know.                                                                                         
                                                                                                                                
Senator  Dunleavy  queried  the   current  cost  of  vehicle                                                                    
registration.                                                                                                                   
                                                                                                                                
Ms. Teal replied that it was $100 per vehicle.                                                                                  
                                                                                                                                
9:01:51 AM                                                                                                                    
                                                                                                                                
AMY   ERICKSON,  DIRECTOR   DIVISION   OF  MOTOR   VEHICLES,                                                                    
DEPARTMENT    OF   ADMINISTRATION    (via   teleconference),                                                                    
explained that  32,425 seniors  currently took  advantage of                                                                    
the senior  exemption. She  clarified that  the registration                                                                    
fee  was $100,  every two  years,  and did  not include  the                                                                    
motor  vehicle registration  tax imposed  in 16  communities                                                                    
across the state.                                                                                                               
                                                                                                                                
Senator Dunleavy  understood that  the $100 fee  was charges                                                                    
per every qualifying senior.                                                                                                    
                                                                                                                                
Ms. Erickson  responded that every Alaskan  was charged $100                                                                    
for  vehicle registration,  including  seniors, unless  they                                                                    
took an exemption on one of their vehicles.                                                                                     
                                                                                                                                
9:03:03 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy wondered how  much the vehicle registration                                                                    
fee grossed in 2013.                                                                                                            
                                                                                                                                
Ms. Erickson said  she would get back to  the committee with                                                                    
the information.                                                                                                                
                                                                                                                                
Senator Olson  wondered about married couples  qualifying if                                                                    
a spouse was below the age of 65.                                                                                               
                                                                                                                                
Ms. Erickson  responded that every senior  would be entitled                                                                    
one vehicle exemption.                                                                                                          
                                                                                                                                
Vice-Chair Fairclough CLOSED public testimony.                                                                                  
                                                                                                                                
9:05:01 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough  looked  at   the  zero  fiscal  note                                                                    
attached to the  bill. She felt that the  fiscal note should                                                                    
be considered "indeterminate."                                                                                                  
                                                                                                                                
9:05:37 AM                                                                                                                    
                                                                                                                                
Senator Bishop MOVED to REPORT  SB 132 out of committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
CS SB  132 (STA) was  REPORTED out  of committee with  a "do                                                                    
pass"  recommendation  and  with previously  published  zero                                                                    
fiscal note: FN1 (ADM).                                                                                                         
                                                                                                                                
9:05:57 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:12:54 AM                                                                                                                    
RECONVENED