Legislature(2005 - 2006)BUTROVICH 205

02/28/2006 01:30 PM Senate TRANSPORTATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 266 COMMEMORATIVE PLATES: STATEHOOD ANIV. TELECONFERENCED
Moved CSSB 266(TRA) Out of Committee
*+ SB 304 AIRPORT PARKING SHUTTLES/AIRPORT CHARGES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
          SB 266-COMMEMORATIVE PLATES: STATEHOOD ANIV.                                                                      
                                                                                                                                
1:35:19 PM                                                                                                                    
CHAIR HUGGINS announced SB 266 to be up for consideration.                                                                      
                                                                                                                                
SENATOR  GARY STEVENS,  bill sponsor,  introduced SB  266. It  is                                                               
                                                                th                                                              
meant to be a  part of the statewide celebration marking  the 50                                                                
anniversary  of Alaska  Statehood. In  the spirit  of celebrating                                                               
the  landmark  anniversary,   the  Alaska  Statehood  Celebration                                                               
Commission has  recommended that the state  issue a commemorative                                                               
license  plate. The  bill gives  the Division  of Motor  Vehicles                                                               
(DMV) statutory authority  to issue a special  license plate. The                                                               
Commission  will be  responsible for  determining the  design and                                                               
color of the plate, which will  be issued between January 1, 2007                                                               
and December 31, 2009.                                                                                                          
                                                                                                                                
1:36:53 PM                                                                                                                    
SENATOR COWDERY moved to adopt CSSB  266 version F as the working                                                               
document before the committee. Hearing  no objections, the motion                                                               
carried.                                                                                                                        
                                                                                                                                
CHAIR HUGGINS asked the sponsor to explain the fiscal note.                                                                     
                                                                                                                                
SENATOR  GARY  STEVENS  said  it   was  an  $81,000  note  and  a                                                               
representative from the DMV was prepared to explain it.                                                                         
                                                                                                                                
1:38:26 PM                                                                                                                    
DUANE BANNOCK, Director, DMV, identified  himself for the record.                                                               
He said  the Department of  Administration (DOA) is  pleased with                                                               
the bill.  He spoke  to the  fiscal note  and explained  that one                                                               
year ago  the DMV  brought back "The  Last Frontier"  plate. They                                                               
made a long-term commitment with  the supplier to reduce the cost                                                               
of the  plates unaware that  they would be changing  the standard                                                               
plate.  As a  result the  DMV  made a  buy designed  to last  the                                                               
division through  the end  of fiscal year  2007. The  fiscal note                                                               
reflects the  fact that  they would  need to  purchase additional                                                               
plates for the  commemorative license plates. The  DMV intends to                                                               
mothball "The Last  Frontier" plates but will bring  them back in                                                               
2010.                                                                                                                           
                                                                                                                                
Generally the DMV makes an  annual request for license plates but                                                               
they did not do that in  the FY07 budget because of the long-term                                                               
agreement made with  the supplier. There is no  change in revenue                                                               
specific to the  plate as it would be a  standard issue plate and                                                               
the  customer  would  not  pay  for  it.  He  offered  to  answer                                                               
questions.                                                                                                                      
                                                                                                                                
1:41:02 PM                                                                                                                    
CHAIR HUGGINS  asked for clarification  of when the  plates would                                                               
be issued.                                                                                                                      
                                                                                                                                
MR. BANNOCK  said the actual  dates of issuance would  be January                                                               
2, 2007 to December 31, 2009.                                                                                                   
                                                                                                                                
CHAIR  HUGGINS  clarified  that  the  fiscal  note  reflects  the                                                               
purchase of the commemorative license plates.                                                                                   
                                                                                                                                
MR.  BANNOCK agreed.  The  DMV  will have  extra  inventory as  a                                                               
result.  The bill  authorizes them  to use  the plates  they have                                                               
already purchased in 2010 when  the commemorative plates issuance                                                               
is completed  and so they will  be financially ahead of  the game                                                               
in the future years.                                                                                                            
                                                                                                                                
SENATOR COWDERY asked Mr. Bannock  to explain what happens to the                                                               
revenue that the DMV takes in.                                                                                                  
                                                                                                                                
MR. BANNOCK informed  the committee that the DMV  is projected to                                                               
take in  $62 million  dollars annually. Of  that, $12  million is                                                               
collected at the behest of  several local governments through the                                                               
motor  vehicle   registration  tax  statute.   Approximately  $50                                                               
million dollars is  returned to the state's  general fund against                                                               
the budget of approximately $11 million dollars.                                                                                
                                                                                                                                
1:43:33 PM                                                                                                                    
                                                th                                                                              
SENATOR FRENCH  asked the exact  date of  the 50   anniversary of                                                               
statehood.                                                                                                                      
                                                                                                                                
SENATOR GARY  STEVENS said  the state  is celebrating  January 1,                                                               
2009 as the formal date of statehood.                                                                                           
                                                                                                                                
SENATOR FRENCH asked Mr. Bannock  whether people would be able to                                                               
purchase "The Last Frontier" plate after January 1, 2007.                                                                       
                                                                                                                                
MR. BANNOCK said yes. It would cost $30 dollars.                                                                                
                                                                                                                                
SENATOR FRENCH asked the recourse  if the designer brings forth a                                                               
plate  that  people  do  not  like.  He  asked  the  reason  that                                                               
legislators aren't able  to see the design before  signing off on                                                               
the bill.                                                                                                                       
                                                                                                                                
MR. BANNOCK  conceded that people have  complained about standard                                                               
issue  plates  before  but  that the  Alaska  license  plate  has                                                               
recently won  an award  for best design.  He guaranteed  that the                                                               
Committee would create a plate that everyone would like.                                                                        
                                                                                                                                
1:46:36 PM                                                                                                                    
CHAIR HUGGINS asked  Mr. Bannock the process to  reach the design                                                               
conclusion.                                                                                                                     
                                                                                                                                
MR. BANNOCK  deferred the question  to a representative  from the                                                               
Commission.                                                                                                                     
                                                                                                                                
CHAIR  HUGGINS  asked  whether a  person  visiting  from  another                                                               
country could purchase the commemorative plate.                                                                                 
                                                                                                                                
MR. BANNOCK said yes, for three dollars.                                                                                        
                                                                                                                                
1:48:10 PM                                                                                                                    
SENATOR FRENCH asked  the reason that a person would  have to pay                                                               
$30 for "The Last Frontier" plate  but only three dollars for the                                                               
commemorative plate.                                                                                                            
                                                                                                                                
MR. BANNOCK explained the three-dollar  plate could not be placed                                                               
on a vehicle and was for display purposes only.                                                                                 
                                                                                                                                
SENATOR FRENCH asked the size of the plate for purchase.                                                                        
                                                                                                                                
MR. BANNOCK  said they were the  same size but it  would have the                                                               
word "sample" emblazoned across it.                                                                                             
                                                                                                                                
1:49:21 PM                                                                                                                    
GAIL   PHILLIPS,   Chairperson,  Alaska   Statehood   Celebration                                                               
Commission,  testified in  support of  the bill  and promised  to                                                               
help design a plate that will be appropriate for everyone.                                                                      
                                                                                                                                
CHAIR  HUGGINS asked  whether  the public  could  see the  design                                                               
before the plate goes to production.                                                                                            
                                                                                                                                
MS. PHILLIPS  said yes. She  said the statehood  celebration logo                                                               
would be  unveiled on  March 7, although  the Commission  has not                                                               
yet decided whether the logo would be used on the plate.                                                                        
                                                                                                                                
1:51:58 PM                                                                                                                    
SENATOR  COWDERY  moved  CSSB  266(TRA)  out  of  committee  with                                                               
individual recommendations and attached  fiscal notes. Hearing no                                                               
objections, the motion carried.                                                                                                 

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