02/11/1998 01:05 PM House TRA

CSSB 157(FIN) - CHILDREN'S TRUST LICENSE PLATES                                
                                                                               
Number 0053                                                                    
                                                                               
CHAIRMAN WILLIAMS indicated the committee would address CSSB
(FIN), "An Act establishing a children's trust motor vehicle                
registration plate," sponsored by Senator Donley.                              
                                                                               
Number 0069                                                                    
                                                                               
SENATOR DAVE DONLEY came before the committee to explain CSSB
(FIN).  He explained the legislation adds a children's trust                
license plate to the current list of optional license plates in                
Alaska.  It would generate revenue for the principal of the                    
children's trust.  Senator Donley said he knows of five other                  
states that have special license plates for their children's trusts            
in those states.  The state would break even on the manufacturing              
of the plate and the excess money would go into the principal of               
the trust.                                                                     
                                                                               
Number 0123                                                                    
                                                                               
REPRESENTATIVE JOHN COWDERY questioned whether the plates would be             
standard sized plates.  He noted he believes the vanity plates run             
$35.                                                                           
                                                                               
Number 0143                                                                    
                                                                               
SENATOR DONLEY explained that the bill provides the plates will                
cost $100.                                                                     
                                                                               
Number 0161                                                                    
                                                                               
REPRESENTATIVE COWDERY said about $65 would go to the trust.                   
                                                                               
Number 0175                                                                    
                                                                               
SENATOR DONLEY reiterated after the cost of the plate is taken care            
of, the remainder would be put in the trust.  He explained that the            
in the past, the department will conduct a contest with school                 
children for the design of the plate.  It is also educational.                 
                                                                               
Number 0204                                                                    
                                                                               
REPRESENTATIVE COWDERY said the creating of the plates shouldn't               
cost more than the vanity plates that already exist.  He noted he              
believes they currently run about $35.  That would leave a large               
portion for the trust.                                                         
                                                                               
Number 0236                                                                    
                                                                               
REPRESENTATIVE BEVERLY MASEK said in Alaska, funding is not                    
dedicated or earmarked.  She questioned how the money would be                 
handled if it can't be dedicated to certain causes.  It would have             
to go into the general fund.                                                   
                                                                               
Number 0275                                                                    
                                                                               
SENATOR DONLEY explained it would be handled the same as program               
receipts.  It would become a program receipt.  The language in the             
legislation can't say, "It shall be appropriated..."  It does say,             
"It may be appropriated by the legislature to the principal of the             
Alaska Children's Trust...."  The funds would be earmarked as                  
program receipts.  Senator Donley said Representative Masek is                 
correct that the legislature can't be required to actually deposit             
the money.  He pointed out that over the last 12 to 15 years, there            
is a good track record regarding program receipts in putting money             
towards the legislative directive in the statute.                              
                                                                               
Number 0327                                                                    
                                                                               
REPRESENTATIVE MASEK said that is a concern of hers.  People are               
asking about other appropriations and money can't be dedicated.                
She said she sees this as one of those issues.                                 
                                                                               
Number 0395                                                                    
                                                                               
CHAIRMAN WILLIAMS indicated there wasn't anybody to testify from               
the Department of Administration, Division of Motor Vehicles.                  
                                                                               
SENATOR DONLEY noted the representative from the department was                
ill, but noted that the Division of Motor Vehicles supports the                
legislation.                                                                   
                                                                               
Number 0406                                                                    
                                                                               
REPRESENTATIVE COWDERY made a motion to move CSSB 157(FIN) out of              
committee with individual recommendations and the accompanying                 
fiscal notes.                                                                  
                                                                               
CHAIRMAN WILLIAMS asked if there was an objection to the motion.               
There being none, CSSB 157(FIN) moved out of the House                         
Transportation Standing Committee.