Legislature(2023 - 2024)ADAMS 519

02/14/2024 08:30 AM House FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+= HB 81 VEHICLES/BOATS: TRANSFER ON DEATH TITLE TELECONFERENCED
Moved HB 81 Out of Committee
+= HB 148 AK PERFORMANCE SCHOLARSHIP; ELIGIBILITY TELECONFERENCED
Moved CSHB 148(FIN) Out of Committee
+= HB 193 INTERNET FOR SCHOOLS TELECONFERENCED
Moved HB 193 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 155 ESTABLISH AK MILITARY AFFAIRS COMMISSION TELECONFERENCED
Moved CSHB 155(FIN) Out of Committee
-- Public Testimony --
HOUSE BILL NO. 81                                                                                                             
                                                                                                                                
     "An Act relating to the transfer of a title on the                                                                         
     death of the owner; and providing for an effective                                                                         
     date."                                                                                                                     
                                                                                                                                
8:37:29 AM                                                                                                                    
                                                                                                                                
Co-Chair Foster  noted that no amendments  had been received                                                                    
for  the bill.  The committee  would review  the one  fiscal                                                                    
note from the Department of Administration.                                                                                     
                                                                                                                                
JEFFREY  SCHMITZ,  DIRECTOR,   DIVISION  OF  MOTOR  VEHICLES                                                                    
(DMV),  DEPARTMENT OF  ADMINISTRATION (via  teleconference),                                                                    
stated that he  had just been informed that  the fiscal note                                                                    
submitted by the  DMV had been changed by  the committee. He                                                                    
believed the  note was now  indeterminate or zero.  He could                                                                    
not speak to  the reasons why the committee  had changed the                                                                    
note.                                                                                                                           
                                                                                                                                
Co-Chair Foster replied  that he did not  believe the fiscal                                                                    
note had been changed by  the committee. He looked at fiscal                                                                    
note  with  the  OMB  component number  2348  showing  total                                                                    
operating expenditures  of $75,000 designated  general funds                                                                    
(DGF). He thought it was likely the original fiscal note.                                                                       
                                                                                                                                
8:39:16 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:39:50 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster noted that Mr.  Schmitz may be looking at an                                                                    
earlier version  of the fiscal  note generated in  the House                                                                    
Transportation Committee, which was  no longer relevant.  He                                                                    
clarified that  the committee  was addressing  OMB component                                                                    
number 2348.                                                                                                                    
                                                                                                                                
Mr. Schmitz  apologized for the confusion.  He detailed that                                                                    
the DMV fiscal note  included $75,000 for programming needed                                                                    
to change  DMV's information system  in accordance  with the                                                                    
bill. He elaborated  that the cost had been  provided by the                                                                    
Office   of   Information   Technology  (OIT)   [under   the                                                                    
Department of Administration]. He  explained that there were                                                                    
no other DMV costs.                                                                                                             
                                                                                                                                
Co-Chair Foster asked the bill  sponsor to come to the table                                                                    
to ensure the fiscal note was accurate.                                                                                         
                                                                                                                                
RYAN   MCKEE,   STAFF,   REPRESENTATIVE   GEORGE   RAUSCHER,                                                                    
confirmed  the fiscal  note was  correct. He  explained that                                                                    
the House  Transportation Committee  had changed  the fiscal                                                                    
note  to indeterminate,  but  it had  reverted  back to  the                                                                    
prior fiscal note  with cost of $75,000 when  it reached the                                                                    
House Finance Committee.                                                                                                        
                                                                                                                                
Co-Chair  Johnson  thought  that the  title  transfer  would                                                                    
already take  place when someone  passed away.  She wondered                                                                    
why the funds were needed if the step was not additional.                                                                       
                                                                                                                                
Mr.  Schmitz  responded  that  it  was  not  something  that                                                                    
happened   automatically  when   an   individual  died.   He                                                                    
explained  that  the DMV  or  individuals  involved did  not                                                                    
automatically  know   who  [a   vehicle  title]   should  be                                                                    
transferred to. He expounded that  sometimes a vehicle could                                                                    
be subject to probate. He  explained there were a variety of                                                                    
other  features  that  could   direct  a  path  of  ultimate                                                                    
ownership  in different  directions. He  was certain  it was                                                                    
the  reason for  the bill,  in order  to clarify  what would                                                                    
happen when  an owner  died. The programming  involved would                                                                    
be to change all of the  fields needed to display the intent                                                                    
of the owners upon death clearly on the title.                                                                                  
                                                                                                                                
8:44:33 AM                                                                                                                    
                                                                                                                                
Co-Chair   Johnson  observed   that   it   would  take   600                                                                    
programming hours  [based on the  information in  the fiscal                                                                    
note]. She estimated that was about 15 weeks.                                                                                   
                                                                                                                                
Mr. Schmitz  responded affirmatively.  He stated it  was the                                                                    
information  provided   by  OIT.  He  explained   it  was  a                                                                    
complicated  item,  particularly   pertaining  to  ownership                                                                    
fields.  He  elaborated  that  it   had  to  be  tested  and                                                                    
regression tested. He stated that  it could take an OIT team                                                                    
awhile to work  on it and he did not  know the exact process                                                                    
or the number of programmers involved.                                                                                          
                                                                                                                                
Co-Chair  Johnson  thought   it  seemed  to  be   a  lot  of                                                                    
programming to do a title transfer.                                                                                             
                                                                                                                                
Co-Chair Foster noted  Leslie Isaacs, Administrative Service                                                                    
Director, Department of Administration,  was in the room for                                                                    
questions as well.                                                                                                              
                                                                                                                                
REPRESENTATIVE GEORGE RAUSCHER, SPONSOR,  stated it was hard                                                                    
for  him  to understand  why  it  would take  the  specified                                                                    
length of time  to make the change. He had  seen other bills                                                                    
with similar changes that had a zero fiscal note.                                                                               
                                                                                                                                
8:46:55 AM                                                                                                                    
                                                                                                                                
Co-Chair  Edgmon asked  if the  committee was  disputing the                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
Co-Chair Foster clarified they were asking questions.                                                                           
                                                                                                                                
Co-Chair Edgmon asked if they  were information gathering on                                                                    
the fiscal  note. He  was uncertain  what the  committee was                                                                    
doing.                                                                                                                          
                                                                                                                                
Co-Chair  Foster remarked  that it  sounded like  there were                                                                    
some questions  on the note.  He stated that  the department                                                                    
felt it needed  the money for the work. He  reasoned that if                                                                    
the  funding was  not provided  the department  may have  to                                                                    
request  a  supplemental  appropriation  later  on.  He  was                                                                    
comfortable going forward with the fiscal note.                                                                                 
                                                                                                                                
Co-Chair  Edgmon wanted  to see  the bill  move and  thought                                                                    
they should  move it  forward. He  surmised that  the fiscal                                                                    
note was  likely not  what the bill  sponsor wanted  to see,                                                                    
but in the scheme of things  the cost was fairly nominal. He                                                                    
believed they  should go for  the greater good and  move the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair Johnson also  wanted to see the bill  move. She did                                                                    
not want to get bogged down  on the $75,000 fiscal note. She                                                                    
thought she would  need to spend some time  looking into how                                                                    
the numbers  were determined on  fiscal notes coming  to the                                                                    
committee.                                                                                                                      
                                                                                                                                
Representative Hannan stated that  she did not know anything                                                                    
about  computer   programming.  She  deferred  to   the  OIT                                                                    
expertise. She was  very supportive of the  bill. She shared                                                                    
that  she  had  just  gone  through  a  complicated  probate                                                                    
process  with her  sister. She  understood that  things that                                                                    
should be  simple and straight  forward were  sometimes not.                                                                    
She remarked that  they were talking about  vehicle and boat                                                                    
titles, which could add a  layer of complexity. She reminded                                                                    
the committee  that DMV  was one  of the  few places  in the                                                                    
state  budget  that generated  millions  of  dollars to  the                                                                    
general   fund  that   lapsed  annually.   She  stated   her                                                                    
understanding that  the $75,000 in  the fiscal note  was the                                                                    
maximum cost  and the  cost may not  reach that  amount. She                                                                    
supported moving the bill.                                                                                                      
                                                                                                                                
Co-Chair  Foster  added  that  the  funds  were  a  one-time                                                                    
amount.                                                                                                                         
                                                                                                                                
8:50:43 AM                                                                                                                    
                                                                                                                                
Co-Chair  Johnson MOVED  to REPORT  HB 81  out of  committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
HB  81 was  REPORTED out  of  committee with  ten "do  pass"                                                                    
recommendations and  one "no  recommendation" recommendation                                                                    
and with one  new fiscal impact note from  the Department of                                                                    
Administration.                                                                                                                 
                                                                                                                                
8:51:29 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:52:37 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 193 Amendments 1-2 021324.pdf HFIN 2/14/2024 8:30:00 AM
HB 193
HB 155 Amendment 1 Hannan 021324.pdf HFIN 2/14/2024 8:30:00 AM
HB 155
HB 193 Amendment 1 Backup DEED BAG 021424.pdf HFIN 2/14/2024 8:30:00 AM
HB 193
HB 193 Amendment 1 Backup E-Rate_Recipient_Details_And_Commitments_20240125_E-Rate_FY2023_School_Internet.pdf HFIN 2/14/2024 8:30:00 AM
HB 193