05/05/1998 08:40 AM House FIN

SENATE BILL NO. 153                                                            
                                                                               
"An Act relating to issuance of special license plates                         
to commemorate the arts."                                                      
                                                                               
KRAG JOHNSEN, STAFF, SENATOR DRUE PEARCE, stated that in                       
the Legislature's effort to bring state spending in line                       
with our revenues, the State Arts Council has been                             
dramatically reduced.  Alaska is facing a dilemma.  Finding                    
funds for the arts is becoming more and more difficult with                    
a population increasingly adverse to public arts funding.                      
He suggested that we need to look for innovative ways to                       
fund our existing arts program if we want public funding to                    
continue. The proposed legislation provides the Arts                           
Council a tool to use in this effort.                                          
                                                                               
Mr. Johnsen noted that license plates have become an                           
increasingly popular revenue source for states facing                          
budget constraints.  In Alaska, there are a number of                          
specialty plates that support various organizations.  The                      
intent behind adding another specialty plate is to provide                     
the State Arts Council a revenue source to supplement                          
decreasing general fund appropriations.  He added that the                     
plates would be designed in consultation with the State                        
Arts Council and it would be the sole responsibility of the                    
Council to promote the program to success.                                     
                                                                               
JUANITA HENSLEY, DIVISION OF MOTOR VEHICLES, DEPARTMENT OF                     
ADMINISTRATION, requested that the fiscal notes indicate                       
FY99.  She commented that there was no way to determine how                    
many plates would be sold.  It is anticipated that there                       
will be revenue generated which would be indicated by an                       
asterisk on the note.                                                          
                                                                               
Representative Kelly MOVED to adopt Amendment #1.  [Copy of                    
File].  He noted that the amendment would delete                               
"noncommercial" in regards to the University of Alaska                         
license plates.                                                                
                                                                               
Ms. Hensley stated that there exists University plates,                        
however, the way in which the statutes are written, the                        
University plates can not be sold for commercial vehicles.                     
Mr. Johnsen pointed out that Senator Wilken, who had wanted                    
to continue support for the University, had submitted the                      
amendment.                                                                     
                                                                               
Representative Mulder advised that a title change would                        
need to be accompanied with a joint resolution title                           
amendment.  Representative J. Davies requested more                            
information on the commercial license plates.  Ms. Hensley                     
responded that at present time, if a passenger vehicle car                     
was used for business purposes, a person would not be able                     
to purchase a special license plate.  Representative J.                        
Davies commented that he supported the amendment.                              
                                                                               
There being NO OBJECTION, Amendment #1 was adopted.                            
                                                                               
Representative J. Davies asked if the funding source would                     
be general funds or general fund program receipts.  Ms.                        
Hensley replied that initially it would be straight general                    
funds since there are no program receipts coming in yet.                       
She anticipated that the plates would sell and that the                        
general fund would be reimbursed to cover start-up costs.                      
                                                                               
Representative J. Davies MOVED to report HCS SB 153 (FIN)                      
out of Committee with individual recommendations and with                      
the accompanying fiscal note.  Representative Kohring                          
OBJECTED.                                                                      
                                                                               
Representative Kohring voiced concern with the legislation                     
being offered so late in the Session and which he believed                     
should not be a high priority concern for State government.                    
He recommended that the Arts Council should be privatized.                     
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Grussendorf, Kelly, Martin, Moses, Mulder,                           
J. Davies                                                                      
OPPOSED:  Kohring, G. Davis                                                    
                                                                               
Representatives Foster, Therriault and Hanley were not                         
present for the vote.                                                          
                                                                               
The MOTION PASSED (6-2).                                                       
                                                                               
HCS SB 153 (FIN) was reported out of Committee with a House                    
Joint Resolution to cover the title change and with a                          
fiscal note by the Department of Administration.