HB 179 An Act relating to motor vehicles and mobile homes; and providing for an effective date. CS HB 179 (FIN) was reported out of Committee with a "do pass" recommendation and with a new fiscal note by the Department of Public Safety. HOUSE BILL 179 "An Act relating to motor vehicles and mobile homes; and providing for an effective date." Co-Chair Larson explained the changes previously made by the Committee to the work draft #8-LS0679\K dated 3/30/93. FRANK DILLON, EXECUTIVE DIRECTOR, ALASKA TRUCKING ASSOCIATION (ATA), ANCHORAGE, ALASKA, stated he represented thirty-three companies in the State which provide trucking services. He urged the Committee to delete Sections 10 & 11, pointing out that portion of the bill had not been publicized nor had it been adequately discussed with the municipalities and would adversely impact the trucking industry. JUANITA HENSLEY, DIRECTOR, DIVISION OF MOTOR VEHICLES, DEPARTMENT OF PUBLIC SAFETY, stressed there has not been an increase to fees since 1978. Representative Martin asked if it would be necessary for the municipal government go through the State to change taxes. Ms. Hensley replied only the municipalities which choose to have the state offices collect their taxes would be required to go through the State to request a statutory change to increase taxes and have the State collect them. The State currently collects taxes for the Municipality of Anchorage, the City of Bethel, Dillingham, Kenai Peninsula Borough, Ketchikan Gateway Borough, Kodiak Island Borough, Matanuska Borough, Nenanna, Nome, Petersburg, Unalaska and if Whittier were required to register by statute, they would be included. She added, the list of exempt cities is sited in A.S. 28.10.11. Those areas which are exempt can not have greater than 499 traffic vehicles on the roadways. Representative Brown expressed concern with the word "tax" on Page 4, Line 23. Ms. Hensley agreed a more appropriate term would be "fee". Representative Therriault MOVED to delete Section #11. There being NO OBJECTION, it was deleted. Representative Hanley MOVED to delete Section #19 which corresponds to Section #11. There being NO OBJECTION, it was so ordered. 2 Representative Brown MOVED to change the language on Page 4, Line 23, the second "tax" should be deleted and insert "fee". There being NO OBJECTION, it was so ordered. Representative Martin suggested a thirty-five percent increase was too high. He recommended that if the municipal government does tax, they should do it by adding a tax rather than taxing fees and services. Representative Grussendorf pointed out that the fees have not been increased since 1975. He MOVED to increase the fee by 25%. Representative Martin MOVED a 10% increase. Co- Chair MacLean OBJECTED to the 10% increase. A roll call was taken on the MOTION. IN FAVOR: Hanley, Martin, Parnell, Therriault, Grussendorf. OPPOSED: Brown, MacLean, Larson. Representatives Hoffman, Navarre and Foster were not present for the vote. The MOTION PASSED, (5-3). Co-Chair Larson asked that a vote be taken on adopting the main motion to change Section #10 from 35% to 10%. A roll call was taken on the MOTION. IN FAVOR: Martin, Parnell, Therriault, Brown, Grussendorf, Hanley, Larson, MacLean. OPPOSED: - Representatives Hoffman, Navarre and Foster were not present for the vote. The MOTION PASSED, (8-0). Representative Brown recommended that the fees be rounded off to the nearest dollar. The Committee agreed. Representative Brown MOVED to report CS HB 179 (FIN) out of Committee with individual recommendations and the fiscal note. Representative Therriault OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Hanley, MacLean, Larson. OPPOSED: Martin, Parnell, Therriault, 3 Grussendorf. Representatives Navarre, Foster and Hoffman were not present for the vote. The MOTION FAILED, (4-4). HB 179 was HELD in Committee for further discussion. HOUSE BILL 179 "An Act relating to motor vehicles and mobile homes; and providing for an effective date." Co-Chair MacLean MOVED to RESCIND the action taken on HB 179. There being NO OBJECTION, it was so ordered. Co-Chair MacLean MOVED to report CS HB 179 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. Representative Martin OBJECTED. (Tape Change, HFC 93-104, Side 2). A roll call was taken on the MOTION. IN FAVOR: Parnell, Brown, Grussendorf, Hanley, Larson, MacLean. OPPOSED: Therriault, Martin. Representatives Navarre and Hoffman were not present for the vote. The MOTION PASSED, (7-2). CS HB 179 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the 5 Department of Public Safety.