Legislature(1995 - 1996)
04/03/1996 02:30 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 226
"An Act relating to biennial registration of motor
vehicles; imposing biennial registration fees on motor
vehicles and authorizing a scheduled biennial municipal
tax on motor vehicles; relating to fees for motor
vehicle emissions control programs; and providing for
an effective date."
TOM WILLIAMS, STAFF, SENATOR FRANK noted that Amendments 6,
7 and 8 were not been addressed during the House Finance
Committee meeting on 3/29/93.
Representative Mulder WITHDREW Amendment 6, 9-LS1452\K.8
(copy on file).
Mr. Williams noted that Senator Frank is neutral in regards
to Amendment 7, 9-LS1452\K.6 (copy on file).
JUANITA HENSLEY, CHIEF DRIVER SERVICES, DIVISION OF MOTOR
VEHICLES, DEPARTMENT OF PUBLIC SAFETY stated that the
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Department is not opposed to Amendment 7. She noted that
the amendment cites AS 28.15.081(d) but relates to vehicle
registration under AS 21.10. She maintained that the
Division has the authority to issues contracts under AS
28.15. The Division currently issues contracts under AS
28.10. There is nothing in the statutes that provides that
the Division can or cannot issue contracts under AS 28.15.
She acknowledged that contract agents' revenues have been
reduce due to the $10 dollar fee for walk-in transactions.
The city of Craig collected $5,025 dollars in $10 dollar
fees paid by persons that did not mail in their
registration. Commissioned agents also receive 50 percent
of driver's license fees and 15 percent of vehicle fees that
they collect. The Division only contracts with police
departments. In 1995, the city of Craig received $27.0
thousand dollars. This amount has increased by
approximately $2.0 thousand dollars a year.
Co-Chair Hanley questioned if the statutory reference should
be changed.
DAVE GRAY, STAFF, REPRESENTATIVE MACKIE spoke in support of
Amendment 7. He emphasized that the drafter felt there
would not be a problem with the citation to AS 28.15. He
asserted that the $10 fee was added to alleviate traffic to
urban offices of the Division of Motor Vehicles. He
stressed that contract officers provide the same services to
rural areas that are offered in urban areas. He observed
that small communities must rely on contract agents.
Co-Chair Hanley questioned if the statutory reference should
be changed. Ms. Hensley stated that the Division has been
contracting since before statehood. She did not think the
statute reference would create a problem.
Co-Chair Hanley noted that the amendment states that the $10
dollar fee for vehicle license registrations shall be waived
under AS 28.15. He pointed out that AS 28.15 does not cover
vehicle licensing. He asked if the citation would give the
Division the authority to waive fees for license plate
registration. He questioned the Division's statutory
authorization. Ms. Hensley acknowledged that there is no
specific language allowing the Division to contract for
vehicle registration under AS 28.15. She stressed that the
Division can waive fees to commissioned agents under current
regulations.
Mr. Gray noted that commissioned agents are currently
performing title work, vehicle registration and other tasks.
In response to comments by Representative Martin, Ms.
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Hensley noted that there is only enough work in the city of
Craig for a half-time position. Commissioned agents receive
50 percent of driver licensing fees.
Representative Brown summarized that the income of contract
agents was reduced. Mr. Gray agreed that the $10 dollar
walk-in fee has reduced contract agent services.
In response to a question by Co-Chair Hanley, Ms. Hensley
clarified that there is no additional fee for driver's
licenses. She noted that driver's licensing fees were
recently increased. Commissioned agents also receive 50
percent of all the commercial driver's licenses.
Representative Brown questioned the fiscal impact to the
State. Ms. Hensley stated that there would be a negative
fiscal impact to the State. She could not estimate the loss
of revenues. She observed amounts collected by commissioned
agents. Co-Chair Hanley summarized that the State would
lose 85 percent of the $31.0 thousand dollars collected by
contract agents.
Representative Brown noted that the intent of the amendment
is to encourage individuals to register their vehicles in
person.
Co-Chair Hanley noted that under current law if 5
individuals registered in person they would each pay a $10
fee for a total of $50 dollars. Fifteen percent of the fee
would go to the contract officer and the rest would go to
the State. The amendment would waive the fee. The State
would have to pay 15 percent of the amount paid to contract
agents. Ms. Hensley added that the State paid contract
agents $128.0 thousand dollars in FY 90 and $174.0 thousand
dollars in FY 95. She pointed out that the Division still
has to administer the paper work involved.
Mr. Gray emphasized that state services can only go to small
communities through similar contract arrangements. He
stressed the need to maintain these services. He
acknowledged the cost to the State.
In response to a question by Co-Chair Hanley, Ms. Hensley
noted that emissions testing centers do not charge the State
for the services they render. In addition, they perform the
paper work and data entry involved. Only 5 of the 13 paid
contract agents register vehicles.
Representative Therriault noted that emissions center
provided services in order to attract business. They
normally charge the customer a $10 fee.
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Co-Chair Hanley reiterated concerns that the Division does
not have statutory authority for contract agents.
SB 226 was HELD in Committee for further consideration.
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