Legislature(2001 - 2002)
04/25/2002 09:46 AM Senate FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 25, 2002
9:46 AM
TAPES
SFC-02 # 77, Side A
SFC 02 # 77, Side B
CALL TO ORDER
Co-Chair Pete Kelly convened the meeting at approximately 9:46 AM.
PRESENT
Senator Dave Donley, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Jerry Ward, Vice Chair
Senator Gary Wilken
Senator Alan Austerman
Senator Lyman Hoffman
Senator Donald Olson
Senator Loren Leman
Senator Lyda Green
Also Attending: REPRESENTATIVE NORM ROKEBERG; DOUG WOOLIVER,
Administrative Attorney, Office of the Administrative Director,
Alaska Court System; DON DAPCEVICH, Consultant, Division of
Alcoholism & Drug Abuse, Department of Health and Social Services;
ANNE CARPENETI, Assistance Attorney General, Legal Services
Section-Juneau, Criminal Division, Department of Law; JENNIFER
YUHAS, staff to Representative Beverly Masek; JANET SEITZ, Staff to
Representative Norm Rokeberg
Attending via Teleconference: From Anchorage: KERRY HENNINGS,
Driver Licensing, Division of Motor Vehicles, Department of
Administration; LINDA WILSON, Deputy Director, Public Defender
Agency, Department of Administration; KEITH BAYHA, Chairman, Alaska
Public Waters Coalition; Testifying Offnet: BOB LOEFFLER, Director,
Division of Mining, Land and Water, Department of Natural
Resources; LIEUTENANT JULIA GRIMES, Department of Public Safety
SUMMARY INFORMATION
HB 4-DRUNK DRIVING& MOTOR VEHICLES/BOATS/PLANE
The Committee heard testimony from the sponsor, the Court System,
the Department of Administration, the Department of Law, the
Department of Public Safety, and the Department of Health and
Social Services. A committee substitute and four amendments were
considered and adopted, and the bill was held in Committee.
HB 421-WATER USE ACT PROCEDURES & RECORDS
The Committee heard testimony from the sponsor, the Department of
Natural Resources, and took public testimony. The bill was held in
Committee.
SB 239-STATE EMPLOYEES CALLED TO MILITARY DUTY
The Committee reported the bill from Committee.
SENATE CS FOR CS FOR HOUSE BILL NO. 4(JUD)
"An Act relating to motor vehicles and to operating a motor
vehicle, aircraft, or watercraft; and providing for an
effective date."
This was the fourth hearing for this bill in the Senate Finance
Committee.
DOUG WOOLIVER, Administrative Attorney, Office of the
Administrative Director, Alaska Court System, noted a zero fiscal
note accompanies the bill. He stated the Department does not
anticipate any further issues to result from changes to "more
clearly define the role of the Therapeutic Court."
KERRY HENNINGS, Driver Licensing, Division of Motor Vehicles,
Department of Administration, testified via teleconference from
Anchorage regarding cost concerns resulting from the bill's
extended mandatory SR 22 insurance coverage requirement. She
informed the Committee the cost of SR 22 insurance for a first time
offender averages "from $4,000 to $6,000 per year for an average
family of four with one child of driving age." She continued that
currently a first time offender must carry SR 22 insurance for
three years, and that the cost would increase to $7,000 per year
for a second offense, and higher for a third offense. She stressed
that expanding the time requirement for offenders to carry SR 22
insurance might result in "more uninsured drivers on the road" due
to the additional expense of the insurance. She urged the Committee
to maintain the current three-year SR 22 requirement for first
offenders instead of the proposed five-year requirement.
LINDA WILSON, Deputy Director, Public Defender Agency, Department
of Administration testified via teleconference from Anchorage to
address the agency's concern about the "significant increased
penalties" proposed in this bill; specifically that the minimum
mandatory fine for a misdemeanor Driving Under the Influence (DUI)
conviction would be increased six-fold, in graduated increments,
for first and repeated offenders, and "significantly increases the
mandatory minimum fines for felony DUI" from $5,000 to $10,000. She
stressed that the committee substitute additionally allows for the
permanent revocation of an individual's license for a felony DUI or
refusal to take a chemical test; doubles the license reinstatement
fee for repeat DUI offenders; and mandates proof of insurance to be
shown when a convicted offender registers a vehicle. She stated,
"all of these increased penalties, in addition to the mandatory
vehicle forfeiture for felony DUI refusals, are certainly very
significant." She urged the Committee to not enact this legislation
until the effects of other legislation, such as the lowering of the
blood alcohol by weight limit, are determined.
DON DAPCEVICH, Consultant, Division of Alcoholism & Drug Abuse,
Department of Health and Social Services, voiced appreciation to
Representative Norm Rokeberg, the bill's sponsor, for presenting
this legislation. He noted the Department of Health and Social
Services has "no fiscal note attached to this bill as there are no
additional requirements placed on the Division for service
delivery;" however, he cautioned that the FY 03 Operating Budget,
being considered by the Legislature, "has a significant decrease in
the grant delivery system." He urged the Committee to approach the
drunk driving issue being aware that if a quality treatment
delivery system were not in place, none of this would work for "if
you don't treat the cause of the problem, you will not have
success."
AT EASE 9:56 AM / 9:57 AM
Co-Chair Donley moved for adoption of SCS CS HB 4, 22-S0046\Q as a
working draft.
Co-Chair Kelly clarified that Version "Q" addresses the discussions
and concerns voiced during the meeting of April 17, 2002.
There being no objections, the committee substitute was ADOPTED as
a working draft.
Amendment #18: This amendment deletes language on page 16, line 15
of the Version "E" committee substitute and inserts new language to
read as follows.
"(a) Except as provided under (s) of this section, a [A]
person commits the crime of driving while under the influence
of an alcoholic beverage, inhalant, or controlled substance
[INTOXICATED] if the person operates or drives a motor vehicle
or operates an aircraft or a watercraft."
In addition, the amendment deletes language on page 16, line 29 and
inserts new language to read as follows.
"(b) Except as provided under (n) of this section, driving
while under the influence of an alcoholic beverage, inhalant,
or controlled substance under (a) or (s) of this section
[INTOXICATED] is a class A misdemeanor. Except as provided
under (q) of this section, upon [UPON] conviction:"
New Text Underlined [DELETED TEXT BRACKETED]
This amendment also inserts a new subsection on page 22, following
line 10, to read as follows.
"(s) A person commits the crime of driving while under the
influence of an alcoholic beverage, inhalant, or controlled
substance if the person has been previously convicted two or
more times of driving while under the influence of an
alcoholic beverage, inhalant, or controlled substance and
operates or drives a motor vehicle or operates an aircraft or
a watercraft when, as determined by a chemical test taken
within four hours after the alleged offense was committed,
there is a 0.04 percent or more by weight of alcohol in the
person's blood or 40 milligrams or more of alcohol per 100
milliliters of blood, or when there is 0.04 grams or more of
alcohol per 210 liters of the person's breath."
Senator Ward noted the amendment is drafted for Version "E,"
although the meaning of the amendment for either version. He moved
for adoption of the amendment.
Co-Chair Kelly inquired if the amendment would fit into the newly
adopted Version "Q."
Senator Ward believed it would; however, if not, he would entertain
a conceptual amendment.
Co-Chair Kelly stated the amendment's proper placement into the
newly adopted version should be scrutinized.
Senator Ward stated he is presenting Amendment #18 to the Committee
instead of to the full Senate as he feels this is the appropriate
place for the decision to be made.
Senator Ward informed the Committee he has listened to "drunk
driving legislation" for twenty years, and it is still an issue. He
stated this legislation would not prevent people from drinking;
however, through this amendment, he is "identifying that there are
some people … in society that are alcoholics and they're a
problem." He stressed the potential danger to others that a
drinking individual presents when driving a car. He explained that
commercial drivers and aircraft pilots are held to a 0.04 limit for
blood alcohol content levels and this amendment would expand the
0.04 limit to include any driver who is convicted more than two
times for a DUI. He opined that a person arrested a third time for
a DUI should be considered "an alcoholic" and should not be able to
have that first drink; for, as alcoholics, they would not be able
to stop at one.
Senator Ward stated that the current 0.08 level would allow a
person to have a drink and still drive; however, lowering the third
offense level to 0.04 would effectively prohibit a person from
having one drink and then driving. Senator Ward reiterated that an
alcoholic could not stop at one drink.
AT EASE 10:03 AM / 10:04 AM
Co-Chair Kelly voiced concern this amendment might incur additional
fiscal impacts.
ANNE CARPENETI, Assistance Attorney General, Legal Services
Section-Juneau, Criminal Division, Department of Law, stated this
amendment "would make conduct that is not currently a crime a
crime;" and therefore would result in significant fiscal impact.
She informed the Committee there is no time limit proposed in the
amendment and questioned "how far back" a person's DUI record could
be accessed. She stated she did not have information regarding how
many people this amendment would affect.
Senator Ward asked what the number of "three-time DUI drivers" is
annually in the State.
Ms. Carpeneti responded she did not have that information with her.
REPRESENTATIVE NORM ROKEBERG, the bill's sponsor, informed the
Committee that the Department of Public Safety statistics for the
prior ten years denotes 2,506 three-time convicted DUI drivers. He
calculated this would average 250 per year.
Co-Chair Donley stated "the real question" is how many three-time
DUI drivers would have registered below the current 0.08 blood
alcohol limit, but above a 0.04 content.
Representative Rokeberg communicated that the Department of Public
Safety's figures are based on the 0.10 blood alcohol content that
was the previous State mandated level. He furthered that the
Department anticipates a five percent increase over these numbers
for the recently adopted 0.08 blood alcohol content number.
Senator Ward calculated that approximately fifty people a year
would be arrested a third time with a 0.04 level. He reiterated the
need to stop two-time DUI offenders from drinking that first drink
and driving. He defended the 0.04 blood alcohol content level as
reasonable for third time offenders.
Senator Leman voiced support for Senator Ward's comments; however,
wished to clarify that exceeding the 0.04 blood alcohol content
would not be the only way for a third time offender to receive a
conviction, as demonstrated impairment would also suffice.
Senator Ward agreed the amendment's language would allow that, but
reiterated that lowering the limit addresses those individuals "who
are not capable of taking the first drink."
Co-Chair Kelly requested no action be taken on this amendment until
the fiscal note impact is determined. He also noted that Amendment
#18 does not draft to the recently adopted Version "Q;" however,
this could be remedied by means of a conforming motion.
Senator Ward WITHDREW his motion for adoption of Amendment #18.
Senator Hoffman stated that more aggressive funding for alcohol and
drug abuse programs would assist in preventing people from getting
their third DUI; thereby, helping to save lives.
Senator Ward stated he does not disagree with that comment.
Co-Chair Donley reminded the Committee there are several proposed
amendments to Version "Q," one of which would require proof of
insurance to be in the vehicle.
Co-Chair Kelly stated, based on previous discussions, that the
intent of that proposed amendment should be addressed in separate
legislation.
Co-Chair Donley explained the proposed amendment differs from those
previously discussed, as it does not require proof of insurance at
time of motor vehicle registration.
AT EASE 10:13 AM / 10:15 AM
Amendment #19: This amendment addresses technical changes in the
bill by deleting "or AS 28.35.030" and inserting ", AS 28.35.030,
or 28.35.032" on page 30, line 18 and line 21 of the Version "Q"
committee substitute.
Co-Chair Donley offered a motion to adopt Amendment #19.
There being no objections, Amendment #19 was ADOPTED.
Amendment #17: This amendment inserts language on page 12, line 11
of the committee substitute to read as follows.
"(c) Notwithstanding any other provisions of this chapter, a
person convicted of driving under the influence of an
alcoholic beverage, inhalant, or controlled substance in
violation of AS 28.35.030 or convicted of refusal to submit to
a chemical test or breath under AS 28.35.032, shall maintain
proof of financial responsibility for the future for (1) five
years if the person has not been previously convicted; (2) 10
years if the person has been previously convicted once; (3) 20
years if the person has been previously convicted twice; (4)
for as long as the person is licensed to drive under AS 28.15
if the person has been preciously convicted three or more
times. In this subsection, 'previously convicted' has the
meaning given in AS 28.35.030."
Co-Chair Donley moved for adoption of Amendment #17. He explained
this amendment would conform provisions in the existing committee
substitute to existing law.
There being no objections, Amendment #17 was ADOPTED.
Senator Green inquired if there were current fiscal notes for the
most recently adopted committee substitute.
Co-Chair Kelly identified the current fiscal notes as follows: the
Court System dated 4/15/02 at zero; the Department of Public Safety
dated 4/10/02 for $105,500; the Department of Corrections dated
4/24/02 for $100,000; a zero fiscal note for the Department of
Health and Social Services dated 4/01/02; the Senate Finance
Committee revised Department of Law fiscal note dated 4/24/02 for
$138,000; the Department of Administration, Division of Motor
Vehicles dated 4/24/02 for $59,440; and the Department of
Administration, Division of Public Defender dated 4/24/02 for
$135,600 for a total expense of $538,500. He stated revenue
projections for this bill are indeterminate; however, the
Department of Law and Department of Revenue tentatively project
revenues of $347,500. He clarified that the revenue generated could
offset the expenses of enacting this bill.
Representative Rokeberg stated he had notified the Committee that
adjustments could be made to the Department of Law's fiscal note,
and he stated there is approximately $8 million of indeterminate
revenue available in this bill, which could, "in worst case
scenario," close the expense and revenue gap. He noted such things
as the increased fines for a first offense DUI could generate
significant revenue.
Co-Chair Kelly reiterated that the bill's revenues might offset the
expenses the Amendment #18 might incur.
Representative Rokeberg concurred and stated that perhaps an
increase in the Wellness Court budget might allow Amendment #18 to
be considered, although there are some structural revisions the
amendment would need. He exampled that, as currently worded,
Amendment #18 indicates a "lifetime" timeframe for determining the
third DUI offense.
Senator Austerman asked for clarification on the total associated
fiscal notes.
Co-Chair Donley stated the fiscal notes amount to approximately
"half a million dollars;" however, he noted that considerably more
revenue could be generated by the bill than the Department's
projections indicate as the revenue is indeterminate.
Representative Rokeberg interjected that the current notes reflect
a net expense of $133,000.
Co-Chair Kelly noted this net expense is factored with
indeterminate revenue.
Senator Austerman voiced concern that the Legislature is expending
intense efforts to develop a FY 03 operating budget with the goal
"of not spending more than" was spent in FY 02, and he asserted he
does not want funding to support this bill to undermine funding for
other Departments.
Co-Chair Kelly cited there is "only a $133,000 net expense"
reflected which should be offset by projected revenues from
increased fines. He furthered that the indeterminate revenue would
probably exceed projections.
Senator Hoffman declared that the goal of the bill should be to
receive less fines and have fewer repeat offenders rather than to
generate more revenue from fines levied on offenders. He furthered
that increasing funding for alcohol and drug abuse treatment
programs could assist in rectifying the problem. He noted that
approximately $3 million dollars is needed to adequately fund the
Department of Health and Social Services treatment programs. He
stated that the Committee "is going at the wrong end of the
spectrum," and "it is good to be tough on crime, but we need to
give those people a chance, before they become criminals and before
they kill somebody, not after the fact."
Co-Chair Donley stated the proposed operating budget increases
funding for the Court System, the Department of Public Safety, and
the Department of Corrections. He commented that a three-quarters
vote is needed to access the Constitutional Budget Reserve (CBR).
He asked Senator Hoffman if he would be one of the three quarters
of the members to vote to access the CBR if funding for alcohol and
drug treatment programs were restored to FY 02 levels in the FY 03
operating budget.
Senator Hoffman stated, "I certainly will be one of them, Mr.
Chairman."
Co-Chair Donley stated this is something that could be discussed
although a funding source would need to be identified. He commented
that drug and alcohol treatment programs appear to be a priority of
Senator Hoffman's as he has voiced concern for these programs
numerous times. Co-Chair Donley commented that if these programs
were a priority to Senator Hoffman, then efforts could be
undertaken to find funding for those programs.
Senator Hoffman responded he could keep his program requests to a
minimal.
The bill was SET ASIDE. [This bill was re-addressed later in the
meeting.]
SENATE CS FOR CS FOR HOUSE BILL NO. 421(RES)
"An Act relating to requiring the Department of Natural
Resources to develop and maintain a standardized procedure for
processing applications and issuing permits, authorizations,
and certifications under the Alaska Water Use Act and to make
a record of those items and amendments and orders affecting
them available on the Internet."
This was the first hearing for this bill in the Senate Finance
Committee.
JENNIFER YUHAS, Committee Aide to Representative Beverly Masek, Co-
Chair of the House Resources Committee the sponsors of this bill,
informed the Committee the current committee substitute for this
bill has a more specific title than the version passed out of the
House of Representatives.
Ms. Yuhas shared with the Committee that statutes enacted in FY 02
resulted in new Department of Natural Resources regulations, and,
during that legislation process, it was revealed that Alaska's
citizens were unhappy with the difficulty in accessing public
records and the "haphazard nature" of water rights, water uses, and
water appropriation issuances. She stated this bill directs the
Department to develop a standardized water right and use procedure
and to make records available to the public.
Senator Wilken characterized the problems associated with the
recent Fairbanks' Ester Dome water project as a "rat's nest," and
voiced strong support for the bill.
Ms. Yuhas relayed that the sponsor requested the Senate Finance
Committee to address concerns pertaining to the Department of
Natural Resources fiscal note. She shared that the Department had
been allocated $300,000 in FY 02 with the expectation of receiving
an additional $300,000 in FY 03 to specifically address the backlog
in the water rights adjudication program. She stated the sponsor's
opinion that the Department of Natural Resources fiscal note dated
3/22/02 in the amount of $75,000 would not be necessary as this
amount could be funded from the existing $300,000 allotment.
BOB LOEFFLER, Director, Division of Mining, Land and Water,
Department of Natural Resources, testified offnet to voice the
Department's general support of this bill. He stated the Department
oversees the water rights program. He explained that the
Department's antiquated computer system makes it difficult for the
Department to easily supply summary information to the public.
Mr. Loeffler specified that the Department's fiscal note for
$75,000 would fund a contract with the Information Resource
Management programmers to make public information available on the
Internet as required in the bill. He also noted the Division would
be fully staffed in FY 03 to address the backlog; however, if the
$75,000 were subtracted from the allotment, some staff would need
to be laid off.
Senator Leman inquired as to what the Division did with the
$300,000 FY 02 allotment.
Mr. Loeffler responded that the $300,000 increment was used to
address the water right permit backlog, and the expectation is that
at the end of FY 02, a new typical water use permit application
would be processed within 60 days of receipt and a typical
temporary water use permit would be processed within 20 days. He
informed the Committee that between 40 and 50 permits were
processed in April and that between the months of January and
March, a total of approximately 100 water right permits had been
processed, matching the total number processed the prior fiscal
year.
Senator Wilken inquired how the Ester Dome project would have
benefited if this legislation had been in effect three years ago.
Mr. Loeffler stated this legislation would have allowed the
Division to more quickly retrieve the summary information from the
computer system.
KEITH BAYHA, Chairman, Alaska Public Waters Coalition, testified
via teleconference from Anchorage. He informed the Committee that
the Coalition consists of sport fishing groups, conservation
groups, some Alaska Water Board members, and other people concerned
about how this legislation might impact the public "while
furthering special interests at the expense of the public
interest." He stated support for the House of Representative's
version of the bill, and voiced disapproval of the Senate's
amendments to it, which require individuals seeking water use
permits to additionally acquire "meaningless" permits from the
Department of Fish and Game.
Mr. Bayha voiced that this bill needs "further improvement" and
noted that the coalition's principle concern is that the term
"standardized procedure" lacks definition." He feared that without
this term being further defined, the bill "might result with a
procedure and a date retrieval system that still may not be user
friendly and capable of being used by citizens who desire to
utilize the data base to perform investigative searches and
analysis."
Mr. Bayha offered various suggestions for amendments to the bill
including in-stream flow and temperature evaluations in determining
permits.
SFC 02 # 77, Side B 10:38 AM
Mr. Bayha stressed that procedures should be addressed to provide
easy and efficient access to water rights information and the
Department's internet site should include such things as adequate
notice of actions relating to changes in water rights. He
summarized that the coalition supports the House of
Representative's version of the bill, and asked for consideration
of the Coalition's concerns and suggestions.
Senator Hoffman asked when the information specified in this bill
would be available on the Internet if the bill were passed.
Co-Chair Kelly noted that information would be forthcoming.
Ms. Yuhas clarified that amendments to the bill do not require an
applicant to apply for a permit from the Department of Fish and
Game, but rather to receive "concurrence on the use of the water."
Ms. Yuhas additionally expressed that citizen complaints at a
public hearing both she and Mr. Loeffler attended, focused on not
being able to access paper files for water rights in the same
city in which they had been applied for, and did not focus on
issues resulting from an archaic computer system.
Co-Chair Kelly ordered the bill HELD in Committee in order to
further address the fiscal notes.
SENATE CS FOR CS FOR HOUSE BILL NO. 4(JUD)
"An Act relating to motor vehicles and to operating a motor
vehicle, aircraft, or watercraft; and providing for an
effective date."
[This bill was heard earlier in the meeting.]
LIEUTENANT JULIA GRIMES, Department of Public Safety, explained to
the Committee that Amendment #18 would have a fiscal impact on the
Department. She stated it would result in approximately 123
additional convictions with administrative fees generating
approximately $27,100 in revenue. She stated this revenue, combined
with the current projected administrative revenue fees of $57,200
would total $84,300. She estimated there would be 383 convictions
that would incur approximately $21,600 in long distance vehicle
transportation charges and $3,500 in short distance transportation
charges and approximately $6,000 in vehicle storage expenses.
Co-Chair Kelly summarized that the bill's total impact on the
Department would be "a virtual wash," as the new revenue and
expenses were approximately equal.
Senator Hoffman noted the Department has indicated the confiscated
vehicles would be auctioned or donated to non-profits, which "would
alleviate the cost of the transportation." He stated this language
is already incorporated into the bill.
Co-Chair Kelly agreed.
Senator Green commented that transportation expenses should be a
consideration as some of the areas are quite remote.
Amendment #18: This amendment was detailed previously in the
minutes.
Senator Ward clarified that changes are required to conform to the
Version "Q" committee substitute and moved for adoption.
Senator Wilken objected out of concern this amendment would
jeopardize the bill's progression through this year's Legislature.
Senator Ward opined this amendment would move the bill forward
faster. He expressed that "there are some people currently in jail
who have hurt others because they had a drink and drove." He
reiterated that there are those individuals who cannot stop
drinking after one drink.
Senator Wilken expressed that his concern with the amendment is
limited to its affect on the bill's passage. He stated he "is
totally supportive of the amendment and also totally supportive of
the bill."
Senator Green inquired as to what affect one drink would have on a
person's blood alcohol level.
Senator Ward stated that one drink would result in a 0.04 blood
alcohol reading and that two drinks would result in a 0.08 reading.
Co-Chair Kelly clarified that would be the case for a small person.
Senator Green suggested that if 0.04 is an "arbitrary" level,
perhaps the language should read that anything above a 0.00 blood
alcohol level reading should be subject to an offense.
Co-Chair Donley stated 0.04 is a reasonable level as research
indicates that signs of impairment begin at 0.05. He continued that
the commercial standard is 0.04 blood alcohol level. He also stated
that body size is a factor, and surmised that 0.04 would allow a
person to have a drink and wait a while before driving. He
reiterated 0.04 is a reasonable standard.
Senator Ward clarified that the 0.04 level would only apply to
people who have two drunk driving convictions.
Senator Wilken reiterated his concern this amendment might hamper
the bill's progress in the Legislature.
Co-Chair Kelly commented the Senate appears to have "no problem"
with the amendment.
JANET SEITZ, Staff to Representative Norm Rokeberg, voiced concern
the amendment would slow the bill down, might generate a Department
of Corrections' fiscal note totaling approximately $885,000, and
might generate additional fiscal notes from the Department of Law
and the Public Defenders office.
Senator Wilken stated he would co-sponsor a bill the next
Legislative session pertaining to the intent of Senator Ward's
amendment. He stressed his desire to not jeopardize the bill this
session.
Senator Ward insisted the amendment be voted on by the Committee
and contended this bill would generate fiscal notes even without
this amendment. He asserted that if you tell an alcoholic they "can
have a drink, then they are going to have the second drink, and
we're going to kill people."
A roll call was taken on the motion.
IN FAVOR: Senator Green, Senator Leman, Senator Ward, Senator
Austerman, Co-Chair Donley, Co-Chair Kelly
OPPOSED: Senator Hoffman, Senator Olson, Senator Wilken
The motion PASSED (6-3)
Amendment # 16: This amendment deletes language and adds language
to page 5, lines 1 and 3 to read as follows
(2) motor vehicle involved in the commission of an
offense under AS 28.15.291; [; or]
(3) motor vehicle used by a person whose license is
suspended under AS 28.22.041; or [.]
(4) motor vehicle used by a person who fails to carry
proof of insurance as required by AS 28.22.019.
New text underlined [BRACKETED TEXT DELETED]
This amendment additionally inserts a new bill section on page 12,
following line 16 to read as follows.
*Sec. 20. AS 28.22 is amended by adding a new section to read:
Sec. 28.22.019. Proof of insurance to be carried and
exhibited on demand.
(a) A person shall have proof of motor vehicle liability
insurance in the person's immediate possession at all times
when driving a motor vehicle, and shall present the proof for
inspection upon the demand of a peace officer or other
authorized representative of the Department of Public Safety.
However, a person charged with violating this section may not
be convicted if the person produces in court or in the office
of the arresting or citing officer proof of motor vehicle
liability insurance previously issued to the person that was
valid at the time of the person's arrest or citation.
(b) A municipality may adopt an ordinance
(1) requiring a person to display a decal on the
person's motor vehicle indicating compliance with (a) of this
section; or
(2) that is substantially similar to (a) of this
section and may impose a penalty for violating the ordinance
as provided under AS 29.25.070.
(c) In this section, "proof" means a copy of the
insurance policy that is in effect or a printed card or
electronic certification from an insurance company, insurance
agent, insurance broker, or surplus lines broker that a policy
that complies with AS 28.22.011 is in effect.
Co-Chair Donley offered a motion to adopt Amendment #16. He
explained this amendment would require that proof of insurance be
carried in a motor vehicle, and would also allow local governments
to adopt and enforce the same requirement if they desire.
Senator Green objected.
Senator Leman voiced the understanding that current law does not
require someone to have insurance; "it requires a person to prove
financial responsibility, of which insurance is one of the them."
Co-Chair Donley stated this is "not true." He explained that if a
person chooses not to carry liability insurance on their vehicle;
they could acquire a Certificate of Self-Insurance from the
Department of Administration.
Senator Leman asked if acquiring the Certificate of Self-Insurance
would satisfy the provisions set forth in Amendment #16.
Co-Chair Donley noted it would.
Senator Olson considered the amendment cumbersome for those
individuals owning several vehicles because having the appropriate
card for each vehicle would sometimes be confusing, thereby causing
a person to feel "less than law-abiding" when they had the wrong
card. He voiced his lack of support for the amendment.
Co-Chair Kelly questioned how this language differs from prior
discussions.
Co-Chair Donley stated language in previously adopted Amendment #4
required proof of insurance at time of registration.
Senator Wilken declared he would not support this amendment if it
would slow this bill down.
Co-Chair Donley affirmed that Alaska law already requires drivers
to have vehicle insurance. He noted that insurance companies
provide insurance cards for each vehicle and those would suffice as
proof of insurance.
Senator Wilken inquired if this amendment would generate additional
fiscal notes.
Co-Chair Donley responded the amendment does not require any more
State paperwork as citizens are supposed to have insurance now;
therefore, there should not be any additional fiscal notes. He
noted that the local government requirement for requiring proof of
insurance is an option and would have no bearing on the State.
Senator Green commented that having "a piece of paper" in the
vehicle does not indicate that the vehicle "has active insurance,"
as insurance could be cancelled after the insurance card is
received.
Senator Hoffman inquired what the penalties would be for not having
the required paperwork.
Co-Chair Donley stated the requirement would raise public awareness
that there is a requirement to have vehicle insurance. He explained
that in the current process, individuals are required to sign an
affidavit stating they have insurance, but many "just sign it" and
do not know what they are signing. He shared with the Committee
that research indicates that approximately 18 percent of drivers do
not have vehicle insurance. He stressed that raising the awareness
level and that lowering this percentage even one or two percent
would be a "big deal" and be good public policy.
Senator Hoffman inquired what the penalties would be.
Co-Chair Donley noted that if a person could not produce the
insurance coverage card, the penalty would be the same as if no
insurance were in effect.
Co-Chair Donley moved to amend Amendment #16 to insert the language
"or certificate of self-insurance" on page 2, line 4, section (c)
following the language, insurance policy in response to Senator
Leman's comment about a Certificate of Self-Insurance being an
acceptable proof of insurance.
Senator Green noted that obtaining insurance coverage for a vehicle
purchased on a weekend would be a difficult burden on someone.
Senator Olson asked if there is a definition of a motor vehicle in
the bill.
Co-Chair Donley stated the definition of a motor vehicle is
identified in the Mandatory Insurance Act Regulation, which also
identifies which regions of the State are affected.
Senator Olson reiterated the difficulty in keeping track of
coverage on multiple vehicles. He added that people in small
communities often do not have insurance coverage on their vehicles
nor are some vehicles even registered.
A roll call was taken on the motion.
IN FAVOR: Senator Austerman, Senator Wilken, Senator Ward, Co-Chair
Donley
OPPOSED: Senator Green, Senator Hoffman, Senator Olson, Senator
Leman, Co-Chair Kelly
The motion FAILED (4-5)
Co-Chair Kelly indicated intent to reconsider his vote on the
amendment.
Co-Chair Donley moved to rescind the Committee's action in failing
to adopt Amendment #16.
Senator Leman objected.
A roll call was taken on the motion.
IN FAVOR: Senator Austerman, Senator Ward, Senator Wilken, Co-Chair
Donley, Co-Chair Kelly
OPPOSED: Senator Green, Senator Hoffman, Senator Olson. Senator
Leman
The motion PASSED (5-4)
The action failing to adopt Amendment #16 was RESCINDED.
Co-Chair Donley moved for adoption of Amendment #16.
A roll call was taken on the motion.
IN FAVOR: Senator Ward, Senator Wilken, Senator Austerman, Co-Chair
Donley, Co-Chair Kelly
OPPOSED: Senator Green, Senator Hoffman, Senator Leman, Senator
Olson
The motion PASSED (5-4) and Amendment #16 was ADOPTED.
Co-Chair Donley offered a motion to "move the new Finance Committee
Substitute and adopted amendments for House Bill #4 from Committee
with individual recommendations and all the accompanying…"
Co-Chair Kelly interjected that the appropriate fiscal notes have
been identified.
Co-Chair Donley offered the language "as the revised fiscal notes
package as consistent with the Chairman's records."
Co-Chair Kelly clarified the appropriate language to be "with the
Chairman's fiscal analysis attached."
Co-Chair Donley concurred.
Senator Green objected and stated this bill is too onerous. She
stated, as a "practicing teetotaler," she has an aversion to drunk
driving, but does not feel this bill addresses the concerns.
Co-Chair Kelly asserted that the passage of this bill from the
Committee would "be negligent" as the Department of Public Safety
fiscal note is questionable.
Co-Chair Donley noted the Committee could generate and adopt a
fiscal note for the Department of Public Safety.
Senator Hoffman additionally noted that the sponsor is not present
to address the ramifications of the adopted amendments.
Co-Chair Donley offered a motion to withdraw his motion to report
the bill from Committee.
There being no objections, the motion to report the bill from
Committee was WITHDRAWN.
The bill was HELD in Committee.
SENATE BILL NO. 239
"An Act relating to state employees who are called to active
duty as reserve or auxiliary members of the armed forces of
the United States; and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Senator Wilken offered a motion to report "SB 239 from Committee
with individual recommendations and attached indeterminate fiscal
note."
Co-Chair Kelly informed the Committee that the Agency's analysis
provides information substantiating the indeterminate fiscal note.
There being no objections, SB 239 REPORTED from Committee with an
indeterminate fiscal note dated 4/22/02 from the Department of
Administration.
ADJOURNMENT
Co-Chair Pete Kelly adjourned the meeting at 11:16 AM
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