Legislature(1993 - 1994)

04/06/1993 01:30 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
  HB 179    An  Act  relating  to  motor  vehicles and  mobile                 
            homes; and providing for an effective date.                        
            HB  179   was  held   in  Committee   for  further                 
  HOUSE BILL 179                                                               
       "An Act relating  to motor  vehicles and mobile  homes;                 
       and providing for an effective date."                                   
  DEPARTMENT OF PUBLIC  SAFETY, provided the Committee  with a                 
  sectional  analysis of work draft #8-LS0679\K dated 3/30/93.                 
  Ms. Hensley asked the Committee to  make a change to Page 1,                 
  Line 13, deleting the  language "but only".  Section  1 will                 
  provide $100 thousand  dollars revenue  for the State  which                 
  the  Division of  Motor  Vehicles  is currently  collecting.                 
  There was no objection to the suggested changes.                             
  (Tape Change, HFC 93-96, Side 1).                                            
  Ms. Hensley continued,  Section 2 would create  ten thousand                 
  plates at $6  dollars each, costing  the State $60  thousand                 
  dollars.    There  will  be  $300 thousand  dollars  revenue                 
  generated.   The State  will develop a  plate which protects                 
  Alaska flora and fauna.                                                      
  Section 3 generates $300 thousand  dollars revenue.  Section                 
  4 will bring Alaska into compliance with the uniform federal                 
  regulation guidelines for the  issuance of handicap  plates.                 
  The standards limit the plates and parking places to persons                 
  with  mobility  handicaps.   This  section  will  generate a                 
  revenue of $16.8 thousand dollars.                                           
  Representative Brown asked if Section 3 was a new  category.                 
  Co-Chair  Larson  explained  this  section  defines  who  is                 
  eligible to park in handicap parking places.  Representative                 
  Brown recommended amending Page 2, Line  28 by deleting "or"                 
  and  adding "and" after "United States".   Ms. Hensley noted                 
  that existing law  has the  original language, although  she                 
  felt the deletion of "or" would be compatible.                               
  Section 5 ends a loophole in  current law which allows motor                 
  vehicle dealers to display one license plate on a car.  With                 
  the proposed change, a dealer would be required to place two                 
  plates on  each car.   Section  6 removes  the authority  to                 
  issue vehicle titles  to mobile homes.   The Division  wants                 
  mobile  homes to be treated as  real estate property instead                 
  of  vehicles.    This section  does  not  cover recreational                 
  travel trailers.  The proposed  change will decrease revenue                 
  by $15 hundred dollars per year  to the Department of Public                 
  Ms. Hensley continued,  Section 7 will remove  the ambiguity                 
  addressing   senior   citizens  exemptions   and  associated                 
  problems.  The amendment will allow senior citizens only one                 
  vehicle exemption per year.  Section 8 adds a $10 dollar fee                 
  for those individuals who do not renew their registration by                 
  mail.    This  section  will   provide  $2  million  dollars                 
  additional revenue to the State.                                             
  Section 9 requires a business to register their vehicle as a                 
  commercial vehicle.  The section will generate $400 thousand                 
  dollars  additional  revenue.     Representative  Therriault                 
  questioned what criteria will be used to determine whether a                 
  vehicle  is a  business  or personal  vehicle.   Ms. Hensley                 
  noted it would be necessary for the  party to declare if the                 
  vehicle   would   be    used   for   commercial    purposes.                 
  Representative Brown questioned the effect of the amendment.                 
   She  asked  the amount  that  a commercially  used vehicles                 
  would be charged.   Ms. Hensley  replied a car is  currently                 
  charged  $35   dollars  registration   fee;  with  the   new                 
  legislation the charge will be $51 dollars.                                  
  Representative Brown pointed  out the loop hole used on Page                 
  4, Line 13, in the usage of the word "or".  She advised that                 
  many employees, as  a part of their job  are required to use                 
  their personal  vehicle for  commercially related  purposes.                 
  Ms. Hensley said  that the language  proposed is not new  to                 
  the legislation and currently is in statute.  A personal car                 
  would  not  be required  to  be registered.   Representative                 
  Brown MOVED to delete  "or" and insert "and" after  the word                 
  Committee discussion followed regarding  the recommendation.                 
  Representative Hanley OBJECTED.                                              
  A roll call was taken on the MOTION.                                         
       IN FAVOR:      Brown, Hoffman.                                          
       OPPOSED:       Parnell,  Therriault,   Hanley,  Martin,                 
  Representatives Foster, Hanley, Navarre and MacLean were not                 
  present for the vote.                                                        
  The MOTION FAILED, (2-5).                                                    
  Ms. Hensley stated that Sections 10 - 13 would address motor                 
  vehicle  municipality registration tax which the Division of                 
  Motor Vehicles  currently collects  for the  municipalities.                 
  These sections were not  in the original bill and  they were                 
  amended in the Labor and Commerce Committee  to increase the                 
  motor vehicle registration tax.                                              
  (Tape Change, HFC 93-96, Side 2).                                            
  Ms. Hensley indicated  that the  proposed legislation  would                 
  increase the motor  vehicle tax seventy percent in  the next                 
  two years.  Section 10 increases the tax thirty-five percent                 
  the first year.   Section  11 is an  additional increase  of                 
  thirty-five  percent   the  following  year.     Section  12                 
  increases  the administrative  fees  which  the Division  of                 
  Motor  Vehicles  would  pay,  from  five to  eight  percent.                 
  Section 13 will establish the motor vehicle registration tax                 
  which the Division collects from the municipalities based on                 
  computations  from  the Department  of  Labor which  will be                 
  finalized in 1998.                                                           
  Section 14 is a cross reference  to the section dealing with                 
  handicap plates.  Section 15 defines "vehicle".   Section 16                 
  is the  repealer of mobile home areas  indicated in statute.                 
  Section 17 -20  clarifies the  effective dates the  previous                 
  Ms. Hensley summarized the  additional revenues which  would                 
  be generated  from  the proposed  version.    Representative                 
  Martin  thought  the   State  was  taking  funds   from  the                 
  municipalities.  Ms. Hensley pointed out this would increase                 
  what  the State  remits  back to  the  municipalities.   The                 
  Committee discussed the  impact on  local government and  to                 
  Representative Hanley MOVED to delete Section 13 and Section                 
  20.  These two sections address  the automatic COLA which is                 
  in statute.  It allows  departments to increase fees without                 
  coming  back to the  Legislature.  Ms.  Hensley replied that                 
  the Department would support the amendment.  There being  NO                 
  OBJECTION, it was adopted.                                                   
  Discussion  followed regarding the  changes proposed  in the                 
  legislation.  Co-Chair Larson noted his concern with raising                 
  the motor vehicle  registration fees seventy percent  in the                 
  next two years.                                                              
  HB 179 was HELD in Committee for further discussion.                         

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