Legislature(1995 - 1996)
02/13/1996 01:33 PM TRA
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
STRA - 2/13/96 SB 226 MOTOR VEHICLE REGISTRATION/EMISSIONS Number 002 CHAIRMAN RIEGER called the Senate Transportation meeting to order at 1:33 p.m. and introduced SB 226 as the first order of business before the committee. TOM WILLIAMS, Staff to Senator Frank, read the following sponsor statement: SB 226 requires motor vehicle registrations to be renewed once every two years instead of annually. This will result in shorter customer service lines at the Division of Motor Vehicles (DMV) by reducing the necessity for as frequent public contact. To help offset the burden of having to pay two years of fees at once, this legislation gives the public a small registration fee break. However, despite the small fee break to the public, the state and those municipalities which have a motor vehicle registration tax will receive additional one time revenue in the year of implementation due to accelerated collections. This legislation dovetails with DMV's current plans to convert to biennial vehicle registration in Anchorage and Fairbanks and allows DMV sufficient time to convert to a statewide biennial system! I believe this is a good piece of legislation and encourage your support. Mr. Williams noted that the committee packets contained a sectional analysis, an overview outline, and a summary of highlights. He explained that the first schedule illustrated the projected vehicle registration by utilizing the actual numbers in 1994 and 1995 while the numbers for the years 1996 to 2002 are based on an annual increase of three percent. The second schedule projects the cash flow under the current fees. The third schedule shows the projected cash flow with the new fees, assuming that the effective date is July 1, 1997. There is a cash flow difference of $12.3 million between the total revenues with the new fees and the total revenues with the old fees. There is a one time net cash flow increase of $9.8 million. Number 092 JUANITA HENSLEY, Chief of Driver's Services for DMV, said that the department does support this concept. A biennial registration program has been supported in previous years, but the annual emissions testing in Anchorage and Fairbanks have been an obstacle for the implementation of such a program. She said that a voluntary biennual program is planned to begin in July. This would benefit the people of Alaska. CHAIRMAN RIEGER understood that biennial registration would become mandatory after the transition period. JUANITA HENSLEY clarified that SB 226 would mandate biennial registration whereas now it is an initiative of DMV to voluntarily do biennial registration. CHAIRMAN RIEGER asked if there would be a refund of any portion of the registration fee, if a vehicle leaves the state or is involved in a car accident. JUANITA HENSLEY replied no. CHAIRMAN RIEGER pointed out that this analysis may fail to capture the unused registration fee. Under the old system, a car that was totalled in an accident or owned by a person who moved to another state would leave the remaining months of registration fee. Under the new system those free months of registration fee would be increased. That must happen frequently. Chairman Rieger stated that all of the fiscal impacts must then be understated. Biennial registration may be more revenue generating than the information suggests. Was that factored into the analysis? JUANITA HENSLEY said that she did not know, but the division does support the projections that were presented by Mr. Williams. TOM WILLIAMS informed the committee that the projections utilized the actual vehicle registration from 1995 with a three percent increase projected. Nothing that Chairman Rieger suggested was taken into account. JAY DULANY, Director of the Division of Motor Vehicles, offered to be available for questions. SENATOR ADAMS moved that SB 226 be moved out of committee with individual recommendations. Hearing no objections, it was so ordered.