Legislature(1993 - 1994)

03/31/1993 08:40 AM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL NO. 1                                                             
                                                                               
       "An Act  relating  to motor  vehicle registration;  and                 
       providing for an effective date."                                       
                                                                               
  REPRESENTATIVE  GAIL  PHILLIPS, SPONSOR  noted  that present                 
  Alaska law does not provide for a state program of municipal                 
  grants for recycling junked and abandoned  cars.  HB 1 would                 
  create  a program  to do  so by  charging an  annual fee  to                 
  vehicle owners at the time of registration and by creating a                 
  fund  in   the  Department  of  Transportation   and  Public                 
  Facilities   for  the   purpose   of  providing   grants  to                 
  municipalities for  transporting such vehicles  to recycling                 
  centers.                                                                     
                                                                               
  Representative Phillips observed that much  of the beauty of                 
  our Alaska  scenery is  marred by  the sight  of junked  and                 
  abandoned  vehicles  along  roadways.   In  addition  to the                 
  visual disruption,  these vehicles are  attractive nuisances                 
  where children may  be at risk  because of broken glass  and                 
  other  hazards.  There  is  also  the  environmental  damage                 
  stemming  from  leaking oil,  fuel,  brake  and transmission                 
  fluids and battery acids.                                                    
                                                                               
  Representative Phillips explained that the program set forth                 
  in  HB 1  would add  a  recycling fee  of $2  to  the annual                 
  vehicle  registration fee.    Current  statistics show  that                 
  there are  488,937 or more registered vehicles in this state                 
  which would  create a fund  of approximately $980,000.   The                 
  funds from the fee would be deposited into the general fund.                 
  The bill also creates a municipal recycling grant fund                       
                                                                               
  Representative Phillips  stated that  the legislature  would                 
  have to  annually appropriate  money from  the General  Fund                 
  into the Municipal Recycling Grant Fund.   The Department of                 
  Transportation would then allocate  grants to municipalities                 
  for the recycling of motor vehicles.  Several municipalities                 
  have participated in programs for the removal of vehicles on                 
  their   own   or   in   conjunction   with   state-sponsored                 
                                                                               
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  "beautification"  efforts.       Other  municipalities  have                 
  participated  in  a  federal  program  administered  by  the                 
  Department of Transportation/Public  Facilities.  During the                 
  last 13 years,  over 7,000 vehicles  have been removed  from                 
  public  roads   under  the  federal  program,   with  grants                 
  totalling $522,000.    However,  continued  funding  of  the                 
  federal program is uncertain  and would not be  available in                 
  those areas that do not have federal funding for roads.                      
                                                                               
  Representative  Phillips  explained  that   because  of  the                 
  Department   of   Transportation   and  Public   Facilities'                 
  expericence   in  administering   and  history   with  ISTEA                 
  (Intermodal Surface Transportation  Efficiency Act of  1991)                 
  the  legislation  calls  for  DOT  to be  the  administering                 
  agency.                                                                      
                                                                               
  Representative Grussendorf asked if the municipalities  that                 
  are already providing this  service will be the ones  to get                 
  all  the  funds.   Representative  Phillips stated  that the                 
  program will be based on pro rata of vehicle registration.                   
                                                                               
  Representative  Parnell  noted  that  there  is  already  an                 
  abandoned vehicle fund in  AS.28.11.110.  He noted that  the                 
  program proposed in HB 1 is slightly different.  He asked if                 
  there  had  been  discussion  of   merging  the  two  funds.                 
  Representative Phillips replied that there had not.                          
                                                                               
  Representative  Hanley  referred  to the  fiscal  note.   He                 
  observed that  the revenue  source would  be $2  dollars per                 
  vehicle.  Representative Phillips noted  that $2 dollars per                 
  vehicle would raise  approximately $2 million dollars.   The                 
  Alaska Municipal League has encouraged a $5 dollar fee.  The                 
  sponsor elected to keep the fee at $2 dollars per vehicle.                   
                                                                               
  Co-Chair MacLean asked how  HB 1 would work in  rural areas.                 
  Representative Phillips stated that  back haul barges  could                 
  be used.                                                                     
                                                                               
  Representative Brown asked if language should be inserted to                 
  direct  the  department in  the  allocation of  funds.   She                 
  emphasized  that  there  will  not  be sufficient  funds  to                 
  address the need.                                                            
                                                                               
  KENT SWISHER, ALASKA MUNICIPAL LEAGUE expressed  support for                 
  HB 1.                                                                        
                                                                               
  JEFF  OTTENSEN,  DEPARTMENT  OF  TRANSPORTATION  AND  PUBLIC                 
  FACILITIES stressed that the program will not  cover all the                 
  demand.  Only  one out of  10 cars will be  cleaned up.   He                 
  emphasized  the  need  to  encourage  other  disposition  of                 
  vehicles.    In  response to  a  question  by Representative                 
  Brown, he clarified that the federal  program was a one time                 
                                                                               
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  clean up effort.  Cars had to be on or within 100  feet of a                 
  federal  or  state  right-a-way.    Once  funds  were  spent                 
  municipalities were mandated to keep the highway  clean.  He                 
  assured members that a formula can be developed to allow use                 
  of funds to be divided among applicants.                                     
                                                                               
  Representative Brown asked if regulations  would be adopted.                 
  Mr.  Ottensen  replied  that regulations  would  be enacted.                 
  Representative Brown asked if the  fiscal note addressed the                 
  cost of enacting  regulations.   Mr. Ottensen answered  that                 
  the fiscal note does cover the cost of regulations.                          
                                                                               
  Representative Brown asked  if there are controls  to assess                 
  municipal spending.   Mr. Ottensen  replied that there  is a                 
  small amount of  money included for  audits.  He added  that                 
  maintenance  station  operators  will  keep  the  Department                 
  informed on municipal progress.                                              
                                                                               
  IRENE MORRIS, ALASKA ENVIRONMENTAL LOBBY spoke in support of                 
  HB 1.  She emphasized that HB 1 will help ensure that junked                 
  and  abandoned cars and  trucks are  removed from  state and                 
  municipal roadways.  She  added that HB 1 will  help address                 
  solid waste  problems  and potential  safety  and  hazardous                 
  waste dangers.                                                               
                                                                               
  Representative Foster  MOVED to report  CSHB 1 (CRA)  out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CSHB  1  (CRA)  was  reported  out  of  Committee  with  "no                 
  recommendation"  and  with  a  fiscal  impact  note  by  the                 
  Department of Public Safety, and with  a zero fiscal note by                 
  the  Department  of Environmental  Conservation  and with  a                 
  fiscal impact note  by the Department of  Transportation and                 
  Public Facilities, dated 3/22/93                                             

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