04/22/1997 09:15 AM Senate FIN

Senate Bill 153                                                              
                                                                               
     "An Act relating to issuance of special license plates."                  
                                                                               
KRAG  JOHNSEN,  STAFF,   SENATOR  DRUE  PEARCE,  stated   that  the            
legislation  would create a  special license  plate to benefit  the            
Alaska Arts Council.  He noted that the cost of the  plate would be            
$150.                                                                          
                                                                               
TIM WILSON,  EXECUTIVE DIRECTOR, ALASKA  STATE COUNCIL ON  THE ARTS            
(via teleconference),  supported  the intent of  SB 153 to  provide            
another  revenue  source  for   the  council.  He  noted  that  the            
council's budget  had been cut 68  percent since FY 91.  The budget            
had reached  its peak of $6 million  in the early 1980s;  the state            
appropriation for the current fiscal year was $460,400.                        
                                                                               
Mr. Wilson stated  concerns about the fee structure  set out in the            
provision. He referred  to a similar license program  in California            
that had  generated $650,000 to  the California Arts Council  since            
1994. He pointed  out that the amount was not significant  in light            
of California's  arts  budget and  population.  He emphasized  that            
the cost  of a  personalized art  plate in California  was  $75 and            
$40  for  renewal,  compared  to  $30  for  a  regular  plate  ($15            
renewal). He recommended  charging less for the plate  and adding a            
renewal fee.  The typical  specialty plate in  Alaska sold  for $30            
to $50. He recommended  charging $50 per plate to  generate greater            
sales.                                                                         
                                                                               
Co-chair  Sharp queried the  number of  specialty plates  available            
in Alaska.                                                                     
                                                                               
JUANITA  HENSLEY,  CHIEF  OF DRIVER  SERVICES,  DIVISION  OF  MOTOR            
VEHICLES, DEPARTMENT  OF ADMINISTRATION, replied that  there were a            
number  of  special  license  plates   offered  by  the  state;  in            
addition  to plates  for  veterans  and handicapped  plates,  there            
were  license   plates  for  collector   cars,  dog  mushers,   the            
university, and others.  She explained that the state  had to order            
a minimum of 900 of each specialty plate.                                      
                                                                               
Co-chair  Sharp  questioned  how  many types  of  specialty  plates            
exceeded  the 900  minimum  order. Ms.  Hensley  listed the  plates            
that were  popular,  including the  veterans plates;  the 900  sets            
had  not been  sold for  many of  the specialty  plates. She  added            
that new specialty  plates did not  have to be purchased  each year            
but were kept in inventory.                                                    
                                                                               
Co-chair Sharp noted the cost of $17,700 for an order of plates.               
                                                                               
Senator Adams queried  the loss of state revenue for  reduced costs            
to charitable  organizations  and suggested  further definition  of            
"charitable."  He  provided  members  with  a  list  of  charitable            
organizations  that  he felt  should not  fall  into the  category,            
such   as    electrical,   telephone,    ski,   and    construction            
associations.   Ms. Hensley calculated  that the division  had lost            
$1.6 million in reduced costs for charitable organizations.                    
                                                                               
Senator  Pearce   agreed  with   Senator  Adams  that   "charitable            
organization"   should   be    redefined   in   statute   so   that            
organizations   such  as  cooperatives   would  not  qualify.   She            
referred to related work done pertaining to gaming permits.                    
                                                                               
Senator  Parnell  observed  that municipalities  were  included  in            
Senator  Adams' list  and questioned  whether unincorporated  areas            
would also be included.  Ms. Hensley replied that  any extension of            
a   government  agency   would   be  included,   including   school            
districts.  School  bus  contractors  would not  be  exempted.  She            
clarified   that   electric   and   telephone   associations   were            
considered charitable  organizations because they  were non-profit.            
                                                                               
Co-chair Sharp expressed  support for retaining municipalities  but            
suggested  removing  other  non-profits  that could  recoup  costs,            
such as the electric cooperatives.                                             
                                                                               
Senator  Phillips   referred  to   the  classification   number  of            
historical vehicles.                                                           
                                                                               
Senator  Pearce  MOVED  to REPORT  SB  153 out  of  committee  with            
individual  recommendations   and  the  accompanying  fiscal  note.            
There being NO OBJECTION, it was so ordered.                                   
                                                                               
SB  153   was  REPORTED   out  of  committee   with  a  "do   pass"            
recommendation   and  with  fiscal   note  by  the  Department   of            
Administration.