Legislature(2001 - 2002)

02/27/2001 01:10 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
       HB  39-VEHICLE REGISTRATION/DWI/FORFEITURE                                                                             
                                                                                                                                
       CHAIR KOHRING  announced  the next  order  of business  would  be                                                        
       HOUSE BILL  NO. 39,  "An Act  relating to  registration of  motor                                                        
       vehicles, to operating a  motor vehicle, aircraft, or  watercraft                                                        
       while intoxicated, and  to driving  with a cancelled,  suspended,                                                        
       or revoked driver's license;  relating to duties of the  division                                                        
       of alcoholism and drug abuse  regarding driving-while-intoxicated                                                        
       offenses; and providing for an effective date."                                                                          
                                                                                                                                
       [Before the  committee,  adopted  at the  previous  hearing,  was                                                        
       Version F, (22-LS0201\F,Ford,2/2/01).]                                                                                   
                                                                                                                                
       Number 1761                                                                                                              
                                                                                                                                
       ROGER WORTMAN, Staff  to Representative  Pete Kott, Alaska  State                                                        
       Legislature,  came  forward  on  behalf  of  the  sponsor.     He                                                        
       explained that due  to peculiar insurance  issues as they  relate                                                        
       to the  registration of  vehicles within  the  Division of  Motor                                                        
       Vehicles (DMV), the sponsor requests that HB 39 pass  through the                                                        
       House Transportation Standing  Committee and  be referred to  the                                                        
       House Labor and Commerce Standing Committee.                                                                             
                                                                                                                                
       CHAIR KOHRING asked  if the version before  the committee is  the                                                        
       same  one   presented  to  the   House  Transportation   Standing                                                        
       Committee a few  weeks ago.   He referred to  it as the  [watered                                                        
       down] version.  He  also asked what  the bottom-line cost of  the                                                        
       bill is.                                                                                                                 
                                                                                                                                
       MR.  WORTMAN  stated  that  the  House   Transportation  Standing                                                        
       Committee aide prepared a  summary (dated 2/14/01) on the  fiscal                                                        
       notes for the committee substitute.  He asked if this  was in the                                                        
       committee members'  packets.    He  said that  since  he  is  the                                                        
       "caretaker" of  the  bill,  who  sees that  the  bill  is  passed                                                        
       through the  various committees, he  has not  studied the  fiscal                                                        
       notes  specifically.    Therefore,  today  he  could   not  speak                                                        
       "intelligently" on the fiscal notes.                                                                                     
                                                                                                                                
       Number 1897                                                                                                              
                                                                                                                                
CHAIR KOHRING  remarked that it  looks like the  bottom-line cost                                                               
of this  bill is about "half  a million, about 1,000  [in] FY 02,                                                               
down to  531 five years  out."   He said that  he was not  in the                                                               
position  to explain  this either.   He  mentioned that  it would                                                               
have  been  helpful if  the  sponsor  [Representative Kott]  were                                                               
here.                                                                                                                           
                                                                                                                                
MR.  WORTMAN commented  that the  fiscal  note is  not the  issue                                                               
here.   He reiterated  that there  are peculiar  insurance issues                                                               
that  need  to  be  referred  to the  House  Labor  and  Commerce                                                               
Standing Committee.   He mentioned that after  this was resolved,                                                               
the bill  could be re-referred  back to the  House Transportation                                                               
Standing Committee.  At this  time, this is the sponsor's intent.                                                               
He reiterated that  he was not prepared to  discuss the breakdown                                                               
of the fiscal note.                                                                                                             
                                                                                                                                
CHAIR  KOHRING remarked  that it  gives  him "a  source of  great                                                               
discomfort" to have  a fiscal note that cannot be  explained.  He                                                               
suggested that  the department  representatives who  prepared the                                                               
fiscal notes  and are impacted  by this could address  the notes.                                                               
However, this might take time,  and "we are already seven minutes                                                               
before the conclusion of this meeting."                                                                                         
                                                                                                                                
Number 1972                                                                                                                     
                                                                                                                                
CANDACE BROWER, Program Coordinator,  Office of the Commissioner,                                                               
Department  of  Corrections,  explained that  the  Department  of                                                               
Corrections submitted  a fiscal note  [on Version F] for  a total                                                               
of $286.2  [thousand] a year.   This amount is  for supplementing                                                               
current  contracts  for institutional  substance-abuse  treatment                                                               
programs.   The  department's current  contracts, for  funding of                                                               
treatment  programs,  have  not  been  supplemented  since  1993.                                                               
Therefore,  [the  department]  has  lost  some  valuable  assets,                                                               
because the contracts cannot be maintained at the current level.                                                                
                                                                                                                                
MS.  BROWER  stated that  actually,  this  increment was  in  the                                                               
governor's  budget.   She  said  that  if  the fiscal  note  were                                                               
submitted now,  it would have  probably been a zero  fiscal note.                                                               
However, "we" have been instructed  to show our costs even though                                                               
it  was in  the  governor's  budget.   Due  to  the provision  in                                                               
Version  F  that  allows  people   to  "receive  treatment  while                                                               
incarcerated at  their discretion,"  the department wanted  to be                                                               
able to  maintain the  current level of  treatment.   The $286.l2                                                               
[thousand] amount would provide that.                                                                                           
                                                                                                                                
CHAIR KOHRING pointed out that the  other fiscal note is from the                                                               
DMV.                                                                                                                            
                                                                                                                                
       Number 2077                                                                                                              
                                                                                                                                
       MARY  MARSHBURN, Director,  Division  of  Motor  Vehicles  (DMV),                                                        
       Department  of  Administration,  said  that  the  current  system                                                        
       within the State  of Alaska  is self-certification of  insurance,                                                        
       which  means,  "Before  you  register  a  vehicle,  you  need  to                                                        
       certify."   This [Version  F] proposes  changing  that system  so                                                        
       that  individuals  would  have  to  provide  physical   proof  of                                                        
       insurance, by showing  a policy  or insurance card.   This  would                                                        
       affect the ways DMV registers vehicles.  Currently,  vehicles can                                                        
       be registered through partners, over the Internet,  by telephone,                                                        
       by mail, and in [person at the] office.  The  costs envisioned in                                                        
       the fiscal note include the fact that the Internet  and telephone                                                        
       transactions would most  likely have to  be discontinued, and  in                                                        
       return, these transactions would come into "our "office.                                                                 
                                                                                                                                
       MS. MARSHBURN explained that  an additional level of staffing  is                                                        
       required for  these  30,000  transactions.   Time  for  in-office                                                        
       transactions would increase because people will need to  bring in                                                        
       proof [of  insurance].   Dealers  and I/M  [emission  inspection]                                                        
       vendors would be required to  view the proof of insurance  before                                                        
       they complete a sale  or before one  could get an I/M  [emission]                                                        
       inspection done  in Anchorage  or Fairbanks,  where  the bulk  of                                                        
       transactions are.  She went on to say:                                                                                   
                                                                                                                                
            If dealers chose to discontinue their  partnership with                                                             
            "us" because it presents  them with delay or  inability                                                             
            to  complete  transactions,  then  these   transactions                                                             
            again revert to DMV.   I think the guts of  this issue,                                                             
            for DMV,  is that  offering proof  of insurance  really                                                             
            does nothing,  ... in  our view,  ...  to decrease  the                                                             
            uninsured drivers.                                                                                                  
                                                                                                                                
       MS. MARSHBURN  referred  to testimony  that  she gave  last  week                                                        
       regarding  her car  insurance.    She  reiterated  that  she  has                                                        
       insurance through USAA.  Her  insurance card, which she keeps  in                                                        
       the glove  compartment of  her car,  states that  she is  covered                                                        
       through 12/31/01.   However, she  said her premium  is only  paid                                                        
       through the  end of March.   So,  even though the  intent of  the                                                        
       provision is  admirable, it adds  additional work  and "takes  us                                                        
       back in venues, at a significant cost."                                                                                  
                                                                                                                                
       Number 2205                                                                                                              
                                                                                                                                
       CHAIR KOHRING  asked  if the  committee  cared  to give  him  any                                                        
       direction, and if the  consensus was to hold  the bill over.   He                                                        
said that  based on  Ms. Marshburn's  testimony, it  appears that                                                               
there are substantial costs [with this  bill].  He added, "We may                                                               
not be  achieving our goal here.   It's not really  going to have                                                               
the impact that  it intended, and that could be  a wrong analysis                                                               
.... "                                                                                                                          
                                                                                                                                
Number 2269                                                                                                                     
                                                                                                                                
MR. WORTMAN  reiterated the sponsor's  request to move  this bill                                                               
to the House  Labor and Commerce Standing  Committee because that                                                               
committee  deals  with other  insurance  issues.   The  sponsor's                                                               
intent within  the House Labor  and Commerce  Standing Committee,                                                               
of  which he  is  a  member, is  to  discuss  the possibility  of                                                               
dealing  with insurance  companies to  "brunt a  portion of  this                                                               
cost" down from the DMV.                                                                                                        
                                                                                                                                
CHAIR  KOHRING  replied that  he  would  "hate  to act  in  haste                                                               
especially when we're dealing with  over a half-million dollars."                                                               
He recognized  Representative Kott's  intent and said,  "It would                                                               
be  a  good enhancement  to  what  Representative Rokeberg  did."                                                               
However, he still  has concerns about the expenditure.   He said,                                                               
"I  don't want  to look  like a  committee that's  spending money                                                               
like a bunch  of drunken sailors.  We just  got through passing a                                                               
bill that has a price tag of 8 million bucks on it."                                                                            
                                                                                                                                
MR. WORTMAN reiterated that the  sponsor's intent was to "grapple                                                               
this thing" in  the committee [House Labor  and Commerce Standing                                                               
Committee]  and lower  the fiscal  note.   He believes  that once                                                               
this bill  is "grappled"  with and  the insurance  companies come                                                               
"online," the fiscal  note will be lowered, if  "they would empty                                                               
it  and, indeed,  absorb some  costs  of this  tracking that  Ms.                                                               
Marshburn is talking about."                                                                                                    
                                                                                                                                
CHAIR KOHRING asked what the will of the committee was.                                                                         
                                                                                                                                
Number 2298                                                                                                                     
                                                                                                                                
REPRESENTATIVE SCALZI said  that he does not have  a problem with                                                               
passing this  bill out  with personal  recommendations.   At this                                                               
point, he  can't support either  of the bills  [HB 4 and  HB 39].                                                               
However,  the   focus  of   the  House   Transportation  Standing                                                               
Committee  is  transportation issues.    He  said that  with  the                                                               
"other bill,"  the fiscal  note should  probably be  addressed in                                                               
other committees.  As long  as our recommendations show that, his                                                               
comfort level  is satisfied  with an  [individual] recommendation                                                               
of "do not pass."                                                                                                               
                                                                                                                                
       REPRESENTATIVE KOOKESH said, "I don't think we can do anything                                                           
       more on this bill; I'd like to move it out."                                                                             
                                                                                                                                
       REPRESENTATIVE MASEK  stated that this bill has been scheduled a                                                         
       few times, and that it should go to the next committee.                                                                  
                                                                                                                                
       Number 2344                                                                                                              
                                                                                                                                
       REPRESENTATIVE MASEK made a motion to move CSHB 39 [Version 22-                                                          
       LS0201\F,  Ford, 2/2/01],  from  the  committee  with  individual                                                        
       recommendations  and attached  fiscal  notes.    There  being  no                                                        
       objections, CSHB  39(TRA)  moved  from the  House  Transportation                                                        
       Standing Committee.                                                                                                      

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