HOUSE BILL NO. 1 "An Act relating to motor vehicle registration; and providing for an effective date." REPRESENTATIVE GAIL PHILLIPS, SPONSOR noted that present Alaska law does not provide for a state program of municipal grants for recycling junked and abandoned cars. HB 1 would create a program to do so by charging an annual fee to vehicle owners at the time of registration and by creating a fund in the Department of Transportation and Public Facilities for the purpose of providing grants to municipalities for transporting such vehicles to recycling centers. Representative Phillips observed that much of the beauty of our Alaska scenery is marred by the sight of junked and abandoned vehicles along roadways. In addition to the visual disruption, these vehicles are attractive nuisances where children may be at risk because of broken glass and other hazards. There is also the environmental damage stemming from leaking oil, fuel, brake and transmission fluids and battery acids. Representative Phillips explained that the program set forth in HB 1 would add a recycling fee of $2 to the annual vehicle registration fee. Current statistics show that there are 488,937 or more registered vehicles in this state which would create a fund of approximately $980,000. The funds from the fee would be deposited into the general fund. The bill also creates a municipal recycling grant fund Representative Phillips stated that the legislature would have to annually appropriate money from the General Fund into the Municipal Recycling Grant Fund. The Department of Transportation would then allocate grants to municipalities for the recycling of motor vehicles. Several municipalities have participated in programs for the removal of vehicles on their own or in conjunction with state-sponsored 2 "beautification" efforts. Other municipalities have participated in a federal program administered by the Department of Transportation/Public Facilities. During the last 13 years, over 7,000 vehicles have been removed from public roads under the federal program, with grants totalling $522,000. However, continued funding of the federal program is uncertain and would not be available in those areas that do not have federal funding for roads. Representative Phillips explained that because of the Department of Transportation and Public Facilities' expericence in administering and history with ISTEA (Intermodal Surface Transportation Efficiency Act of 1991) the legislation calls for DOT to be the administering agency. Representative Grussendorf asked if the municipalities that are already providing this service will be the ones to get all the funds. Representative Phillips stated that the program will be based on pro rata of vehicle registration. Representative Parnell noted that there is already an abandoned vehicle fund in AS.28.11.110. He noted that the program proposed in HB 1 is slightly different. He asked if there had been discussion of merging the two funds. Representative Phillips replied that there had not. Representative Hanley referred to the fiscal note. He observed that the revenue source would be $2 dollars per vehicle. Representative Phillips noted that $2 dollars per vehicle would raise approximately $2 million dollars. The Alaska Municipal League has encouraged a $5 dollar fee. The sponsor elected to keep the fee at $2 dollars per vehicle. Co-Chair MacLean asked how HB 1 would work in rural areas. Representative Phillips stated that back haul barges could be used. Representative Brown asked if language should be inserted to direct the department in the allocation of funds. She emphasized that there will not be sufficient funds to address the need. KENT SWISHER, ALASKA MUNICIPAL LEAGUE expressed support for HB 1. JEFF OTTENSEN, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES stressed that the program will not cover all the demand. Only one out of 10 cars will be cleaned up. He emphasized the need to encourage other disposition of vehicles. In response to a question by Representative Brown, he clarified that the federal program was a one time 3 clean up effort. Cars had to be on or within 100 feet of a federal or state right-a-way. Once funds were spent municipalities were mandated to keep the highway clean. He assured members that a formula can be developed to allow use of funds to be divided among applicants. Representative Brown asked if regulations would be adopted. Mr. Ottensen replied that regulations would be enacted. Representative Brown asked if the fiscal note addressed the cost of enacting regulations. Mr. Ottensen answered that the fiscal note does cover the cost of regulations. Representative Brown asked if there are controls to assess municipal spending. Mr. Ottensen replied that there is a small amount of money included for audits. He added that maintenance station operators will keep the Department informed on municipal progress. IRENE MORRIS, ALASKA ENVIRONMENTAL LOBBY spoke in support of HB 1. She emphasized that HB 1 will help ensure that junked and abandoned cars and trucks are removed from state and municipal roadways. She added that HB 1 will help address solid waste problems and potential safety and hazardous waste dangers. Representative Foster MOVED to report CSHB 1 (CRA) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 1 (CRA) was reported out of Committee with "no recommendation" and with a fiscal impact note by the Department of Public Safety, and with a zero fiscal note by the Department of Environmental Conservation and with a fiscal impact note by the Department of Transportation and Public Facilities, dated 3/22/93