Legislature(1993 - 1994)
04/06/1993 01:30 PM FIN
* first hearing in first committee of referral
= bill was previously heard/scheduled
= 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 discussion. HOUSE BILL 179 "An Act relating to motor vehicles and mobile homes; and providing for an effective date." JUANITA HENSLEY, DIRECTOR, DIVISION OF MOTOR VEHICLES, 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 5 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 Safety. 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. 6 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 "business". 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, Larson. 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 sections. 7 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 individuals. 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.