Legislature(2023 - 2024)GRUENBERG 120
03/21/2023 03:00 PM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s)|| Alaska Public Offices Commission|| Alaska State Commission for Human Rights|| Confirmation Hearing(s) | |
| HB81 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | HB 81 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 81-VEHICLES/BOATS: TRANSFER ON DEATH TITLE
3:27:09 PM
CHAIR SHAW announced that the final order of business would be
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."
3:27:42 PM
REPRESENTATIVE GEORGE RAUSCHER, Alaska State Legislature, prime
sponsor, presented HB 81. He provided the sponsor statement
[included in the committee packet], which read as follows
[original punctuation provided]:
The process of probate in the state of Alaska can take
anywhere from six months to several years, and can
cost family members and beneficiaries thousands,
potentially tens of thousands of dollars in legal and
filing fees. While the State Legislature has already
taken great strides to reduce the costs of probate,
there is still much room for improvement.
House Bill 81 continues in spirit with the Uniform
Real Property Transfer on Death Act (URPTDA), which
unanimously passed both the House and Senate in 2014.
URPTDA created the Transfer on Death (TOD) deed, which
allows for nonprobate transfers of real property. TOD
deeds allow Alaskans to select a beneficiary who will
receive the property at their passing and removes that
property from the process of probate.
In 2016, legislation similar to HB 81 was introduced
but the legislation failed to pass that session. HB81
is nearly identical, although it expands the concept
to apply both to vehicles and boats that are issued
titles through the state.
HB81 continues the ongoing effort to reduce the costs
of probate for Alaskans and creates a streamlined
service through the DMV through which they can
designate beneficiaries for both cars and boats
through a simple form. The TOD titles will be
available for all boats and vehicles for which the DMV
provides titles, which also includes some mobile
manufactured homes under AS 45.29.102(66). The program
will be self-sustaining through fees.
At no cost to the state, HB 81 will allow countless
Alaskans to pass down boats, vehicles, and some
manufactured homes to beneficiaries with more ease,
and will help simplify and streamline the potentially
complicated, costly, and painful process of probate
following the death of a loved one.
3:31:10 PM
RYAN MCKEE, Staff, Representative George Rauscher, Alaska State
Legislature, prime sponsor, provided the sectional analysis for
HB 81 [included in the committee packet], which read as follows
[original punctuation provided]:
Section 1:
Adds a new section under AS 05.25 that allows owners
of boats, for which the Department of Administration
(DoA) issues titles, to obtain a transfer on death
(TOD) title.
Section 2:
Amends AS 13.33.101(a) to add a transfer of a boat or
vehicle by a TOD title to the existing list of
acceptable nonprobate transferable property.
Section 3:
Creates a provision under AS 13.33 for a transfer on
death (TOD) title for boats and vehicles. Creates and
defines the mechanism through the Division of Motor
Vehicles (DMV), by which individuals will obtain,
revoke, or change their transfer on death title and
defines the parameters of the transfer on death title.
(a)-(c) Obtaining a TOD Title
Creates a provision under AS 13.33 for a transfer on
death title for vehicles and boats for which DoA
issues titles. o This includes some manufactured homes
for which the DMV issues titles under AS
45.29.102(66). These homes are without a permanent
foundation and transportable in one or more sections.
• Requires that the transfer of title to the
designated beneficiary occurs when the sole owner or
last surviving joint owner of the vehicle dies.
• Requires that owners of the boats or vehicles file a
form through the DMV and pay associated fees to apply
for a TOD title.
• Limits the TOD titles to two beneficiaries.
(d) TOD titles effective without notice or
consideration
• Provides that TOD titles will not require notice or
acceptance by the designated beneficiary.
• Provides that TOD titles will not be subject to
consideration, the process by which there is an
exchange or "quid pro quo" required from the recipient
of the assets.
o Language taken from TOD deed statute under AS
13.48.060.
(e) TOD titles are nontestamentary
• States that TOD titles are nontestamentary, meaning
that the associated vehicles do not need to be
provided for in the decedents will.
(f)-(g) Revocation or Change to TOD titles
• Provides that the owner may revoke or change the
designated beneficiary on the TOD at any time without
the beneficiary's consent.
• Explains the process by which owners may revoke or
change a TOD title.
o The owner can either assign and deliver the
certificate of title for the vehicle to another
person, thereby revoking the TOD title, or;
o file with the DMV to reissue the title without
a designated beneficiary or with a different
designated beneficiary.
(h) Designated beneficiaries right to disclaim
interest
• Allows designated beneficiaries to refuse the boat
or vehicle designated to them in a TOD title.
o Language taken from TOD deed statute under AS
13.48.100.
(i) TOD titles subject to decedent's creditors,
contracts, etc.
Subjects the TOD title to creditor's claims against
the owner's estate, as well as to other interests,
contracts, liens, encumbrances, assignments, and other
interests.
• These interests remain attached to the boat or
vehicle after it is transferred to the designated
beneficiary.
(j-m) Enforcing liability upon TOD titles
• Imposes the same procedures for enforcing liability
upon TOD titles that is applied to TOD deeds under AS
13.48.110 and AS 13.48.088.
o Provides that the estate may enforce liability
against boats or vehicles with TOD titles if the
owner's estate does not cover an allowed claim.
o States that if there are multiple vehicles and/or
boats, and a liability exists in the deceased's
estate, the liability will be apportioned to each
asset in proportion to its net value.
o Requires that a proceeding to enforce a
liability must begin within 12 months of the
owner's passing and can only begin once proper
notification to beneficiaries has occurred.
o Stipulates that TOD titles do not affect rights
of ownership before the owner's 3 Sectional
Analysis: 31-LS0422\U death, and do not affect
rights of the designated beneficiary or creditors
of the owner(s).
o TOD titles do not give legal or equitable
preference to the designated beneficiary.
o TOD titles do not affect designated
beneficiaries' eligibility for state public
assistance. (n-p) Uniform standard of
survivorship, requirements to receive TOD title
• Requires that the designated beneficiary survive the
previous owner by 120 hours.
• Requires that the designated beneficiary submit
proof of the owner's death and an application and
associated fees to the DMV.
• If there are two beneficiaries listed on the TOD
title, they become joint owners.
(q) TOD titles may not be changed by other instruments
• Provides that TOD titles may only be changed by the
process outlined in section 3 and not by a will or any
other instrument.
(r) Gives the DoA authority to develop regulations to
implement the TOD titles, establish necessary forms
and fees, etc.
(s) Definitions
Section 4:
Amends AS 13.48.110(c) to add a person acting on
behalf of the surviving spouse of the decedent to the
list of people who may demand to enforce liability
against the decedents' property.
Section 5:
Adds a new section to AS 28.10.275, relating to
vehicle titles, to clearly state that owners of
vehicles for which the DMV issues titles may obtain a
TOD title.
Section 6:
Gives the DoA authority to develop necessary
regulations.
Section 7: Applies an immediate effective date to
section 5 of the bill to allow the department to
develop regulations.
Section 8:
Applies an effective date of July 1, 2024 to the
legislation except for sections 5 and 7.
3:38:14 PM
CHAIR SHAW inquired about the Department of Administration's
(DOA's) fiscal note.
MR. MCKEE explained that the Division of Motor Vehicles (DMV),
[DOA}, estimated 600 program hours at a cost of $125 dollars per
hour for a total estimated cost of $75,000.
CHAIR SHAW invited questions from members of the committee.
3:38:55 PM
REPRESENTATIVE STORY asked about the cost of completing a title
transfer, or transfer on death ("TOD"), for boats or vehicles.
REPRESENTATIVE RAUSCHER deferred to the division.
3:39:42 PM
JEFFREY SCHMITZ, Director, DMV, DOA, responded that the cost of
producing a title was $15 with no lien or $30 with a lien.
REPRESENTATIVE STORY asked whether the fifteen- or thirty-dollar
payment was a one-time fee.
REPRESENTATIVE RAUSCHER deferred to the division.
MR. SCHMITZ explained that the fee [of $15 or $30 respectively]
was an existing cost associated with replacement titles and
separate from the bill. He clarified that the department's
fiscal note specifically described the programming charges
required to implement the provisions outlined in the bill.
REPRESENTATIVE STORY asked for verification that a person could
refuse a gifted boat or vehicle if he/she could not afford to
keep it.
REPRESENTATIVE RAUSCHER deferred to Mr. McKee.
3:43:43 PM
MR. MCKEE confirmed that subsection (h) in Section 3 of the bill
allowed a designated beneficiary to refuse a boat or a vehicle.
REPRESENTATIVE RAUSCHER clarified that the fiscal note had been
reduced to an indeterminate amount.
CHAIR SHAW opened public testimony on HB 81.
3:45:42 PM
BETHANN CHAPMAN, Representing Self, share that she was a
practicing attorney in trust, estate, and probate areas. She
stated her support for the bill, which she described as an
additional tool to pass assets at death without the need for the
probate process.
3:46:36 PM
CHAIR SHAW closed public testimony on HB 81. He announced that
the bill was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 3.8.23 Eric Feige APOC Resume_Redacted.pdf |
HSTA 3/21/2023 3:00:00 PM |
Confirmation: Feige, Eric - Alaska Public Offices Commission |
| 3.8.23 Shiela Cernich Human Rights Resume_Redacted.pdf |
HSTA 3/21/2023 3:00:00 PM |
Confirmation: Cernich, Shiela - State Commission on Human Rights |
| 3.8.23 Shiela Cernich Human Rights App_Redacted.pdf |
HSTA 3/21/2023 3:00:00 PM |
Confirmation: Cernich, Shiela - State Commission on Human Rights |
| HB 81 Sponsor Statement.pdf |
HSTA 3/21/2023 3:00:00 PM |
HB 81 |
| HB 81 Sectional Analysis .pdf |
HSTA 3/21/2023 3:00:00 PM |
HB 81 |
| HB 81 Letters of Support.pdf |
HSTA 3/21/2023 3:00:00 PM |
HB 81 |
| HB0081A.PDF |
HSTA 3/21/2023 3:00:00 PM |
HB 81 |
| HB 81 Fiscal Note DOA DMV 2.24.23.pdf |
HSTA 3/21/2023 3:00:00 PM |
HB 81 |