Legislature(1993 - 1994)
01/22/1994 08:00 AM House STA
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 328 - DRIVERS LICENSE FEES; BIENNIAL VEHICLE REGISTRATION Number 044 REPRESENTATIVE TERRY MARTIN, sponsor of HB 328, explained the purpose of HB 328 as being to take care of `piggy back' problems with the vehicle registration. He said some of the problems are collecting city taxes, inspection & maintenance (I.M.) testing, etc. REPRESENTATIVE MARTIN submitted suggestions to the committee for changing HB 328. (Attachment on file.) REPRESENTATIVE MARTIN also requested two or three hearings on HB 328, in which case subcommittees could fully understand the implications of `piggy-backing programs' to the registration of a vehicle. Number 117 CHAIR VEZEY acknowledged REPRESENTATIVE MARTIN'S suggestions and introduced RON KING. Number 155 RON KING, PROJECT MANAGER, MOBILE SOURCES PROGRAM, DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC), testified that his department was in favor of working with the sponsor to create a palatable bill to both the public and his department. MR. KING said his program responsibilities include the vehicle inspection of maintenance program areas. With new regulations adopted January 21, 1994, by Commissioner Sandor, MR. KING stated his department was now in a position to implement changes, but not without a cost impact to the agency. MR. KING highlighted the use of a fee to reduce the general fund match which goes to the DEC by up to $400,000. Mr. KING elaborated on the suggestions REPRESENTATIVE MARTIN submitted. He said the vehicle inspection programs are under the most scrutiny and the continuing effectiveness of these programs must be maintained. He stated the department would also like the ability to prescribe fees. REPRESENTATIVE PETE KOTT questioned the attainment standards for emission failing cities, such as Anchorage and Eagle River and the amount of time which may elapse before they would reach suitable levels. MR. KING responded the standard, as implied by the Clear Air Act, must be maintained for two years before a change in the program may occur. Number 289 REPRESENTATIVE KOTT asked how the department would notify individuals that their annual inspections would be due. Number 294 MR. KING explained an initial letter, followed by second and third notices would be sent out to an accumulative of 15,000 people, with registration revocation notices following if unsuccessful. This process includes graduating fees for those not responding to their notices. REPRESENTATIVE KOTT inquired about an allowance to appeal the issue of paying a fine for individuals who are out-of- state for three to five months at a time. Number 332 MR. KING noted provisions already in place such as utilizing a portion of statutes under AS 28 to alter the registration month to concur with individuals in-state time, and secondly, the requisition of an "outside use or seasonal waiver". Number 344 CHAIR VEZEY asked why are (we) locked into annual inspection tests? What makes them better than biennial? Number 352 MR. KING responded with two reasons: Car performance decreases within approximately nine months, and the effectiveness of the program established in 1985 with the U.S. Environmental Protection Agency was based on an annual inspection. Cars must at least maintain their current performance and structure which requires an annual inspection. A centralized maintenance program, rather than the decentralized program currently in place, could provide a system for biennial inspection with the use of more sophisticated equipment. MR. KING emphasized (we) should maintain where (we) are, achieve the "standard", and in two years move for alterations in the program when the maintenance plan must be submitted. Number 410 REPRESENTATIVE MARTIN asked MR. KING if he would allow biennial registration to move forward now, allowing the I.M. programs an easier entrance into the program as it improves. MR. KING found HB 328 a "step in the right direction" and agreed with REPRESENTATIVE MARTIN. The DEC and the Division of Motor Vehicles (DMV) would then be required to work closely together. CHAIR VEZEY checked the teleconference sites for witnesses. Number 428 JOE SCHOENER, of North Pole, asked MR. KING to explain the Mobile Sources Fee. Number 434 MR. KING explained the Mobile Sources Fee applies to those who fail to have their vehicle inspected and it is in place to create the incentive to do so. Number 447 MR. SCHOENER expressed his support of HB 328 and suggested guidelines which would allow the biennial registration date to be carried over with the change in ownership of a vehicle. He also stated the biennial fees should not have to be repaid. Number 457 CHAIR VEZEY clarified MR. SCHOENER was in support of HB 328. Number 462 MR. SCHOENER stated in conclusion that the inspection program which the DEC will need to create should provide the least amount of time and cost imposition on the public. Number 476 REPRESENTATIVE MARTIN clarified there is a time and money savings from the DMV, whereby one only has to register once a year unless the car is sold. HB 328 decreases the fee from $70 dollars every two years to $53 dollars every one and one-half years. One dollar will also be saved by not having to present the I.M. sticker to the DMV personnel. REPRESENTATIVE MARTIN also noted the loss of $2-4 million as reported on the fiscal note would not actually all be lost. The state would not be collecting the money to pass through the city, rather the city would collect its own money. Number 495 CHAIR VEZEY switched to Fairbanks teleconference site. LADD MCBRIDE, testified from Fairbanks in support of HB 328. MR. MCBRIDE urged for the reduction of I.M. inspection costs for the vehicle owner, noting Alaska charges close to double the amount for inspections than the other 49 states. Number 529 REPRESENTATIVE MARTIN expressed costs will be reduced for those who take the time to get their car inspected. REPRESENTATIVE MARTIN conveyed a scenario in which gas stations were inflicted by an additional $10 dollar fee for emission testing receipts. These fees, REPRESENTATIVE MARTIN believed were unnecessary, when only for paper pushing costs. Local governments may reduce their costs without these costly receipts. Number 560 CHAIR VEZEY moved to the Anchorage teleconference site. JAY DULANY, DIRECTOR, DIVISION OF MOTOR VEHICLES, testified from Anchorage, in favor of biennial registration. MR. DULANY stressed the loss of revenue is not so much a concern of the DMV, rather than the state itself. The new process, he believes, would not be a "panacea" for efficiency because the current registration process is simple as it is. Biennial registration would provide about a 10 percent savings in the DMV workload, however. Number 600 CHAIR VEZEY asked how many vehicles within the state do not, as of now, have to pay registration fees, but are registered. MR. DULANY did not have an exact number, but he noted the amount of lost revenue totals almost $1 million. Number 612 REPRESENTATIVE KOTT thanked MR. DULANY for his testimony and asked him if there has ever been a previous reduction in registration fees. Number 619 MR. DULANY did not know of any previous reductions, but he remembered the $5 dollar increase which occurred approximately ten years ago. Number 621 REPRESENTATIVE MARTIN thanked MR. DULANY for testifying and expressed he would like to see the public want to cooperate with the government by reducing their fees. The percentage of decrease would be left up to the committee. Branching out the registration sites may also relieve the back up which occurs in DMV locations. CHAIR VEZEY called for a brief recess. TAPE 94-3, Side B Number 000 CHAIR VEZEY recalled the meeting at 8:42 a.m. and introduced Gene Dusek at the Anchorage teleconference site. Number 011 GENE DUSEK, BUDGET DIRECTOR, MUNICIPALITY OF ANCHORAGE, testified from Anchorage, and expressed two concerns with HB 328. First, the impact on the Anchorage air quality inspections program. Secondly, the revenue impact via the annual motor vehicle registration tax. MR. DUSEK desired an amendment to HB 328 which would amend AS 28.10.431(b) to double the current annual motor vehicle registration tax. Enforcement problems may arise with biennial registration. MR. DUSEK suggested the creation of a dedicated fund which would provide a "bureaucratic system of renewification enforcement". Number 111 REPRESENTATIVE MARTIN reemphasized the loss in revenues is not to the state, but a relocation of collection efforts to the city. Number 135 MR. DUSEK stated the last date to opt out of the 1996 program would be January 1, 1995. Number 150 CHAIR VEZEY requested written testimony from anyone who would like to comment. Number 163 FRANK DILLON, representing the Alaska Trucking Association, testified from Anchorage in favor of HB 328. Number 189 REPRESENTATIVE KOTT asked MR. DILLON for the positive effects HB 328 would have on the truckers. Number 194 MR. DILLON believed general efficiencies would improve and also the reduction in costs. Number 206 CHAIR VEZEY switched to the Mat-Su teleconference site for the testimony of MARK GORDON. Number 218 MARK GORDON, testified in favor of HB 328 from Mat-Su. MR. GORDON questioned MR. KING if the DEC's new program would require inspections on just his commuting vehicle or all three of his vehicles. MR. KING expressed the program would only be implemented on the commuting vehicle from home to work. Number 244 CHAIR VEZEY called for a short recess at 8:55 a.m. stating a subcommittee would be assigned to HB 328. Number 270 CHAIR VEZEY resumed the meeting at 8:59 a.m. noting HB 328 would be rescheduled.
| Document Name | Date/Time | Subjects |
|---|