HB 331 - MOTOR VEHICLES:INS/LICENSES/IMPOUNDMENTS 1:30:59 PM CHAIR RAMRAS announced that the next order of business would be HOUSE BILL NO. 331, "An Act relating to mandatory motor vehicle insurance, license suspensions, mandatory impoundments of vehicles used in certain offenses, and notices relating to motor vehicles and driver's licenses." [Before the committee was CSHB 331(L&C).] 1:31:10 PM CRYSTAL KOENEMAN, Staff to Representative Bob Roses, Alaska State Legislature, relayed on behalf of Representative Roses, sponsor, that HB 331 pertains to motor vehicle insurance, license suspensions, and notices relating to motor vehicles. She explained that HB 331 reduces the penalty for failure to report to the Division of Motor Vehicles (DMV) a name change or address change from a class B misdemeanor to a fine not to exceed $25. She stated that Section 2 of the bill provides an affirmative defense clause to allow a person to provide proof of automobile insurance in the event that a person's automobile insurance was suspended for failure to provide prove of current insurance within 30 days of the required notice. The insurance must be in place at the time of the offense and not purchased after the offense, she noted. Currently, conviction of driving without vehicle insurance would result is a license suspension between 90 days and one year, she stated. Ms. Koeneman explained that proposed Section 3 would add a new subsection in AS 28.22.019 that would impose a class B misdemeanor and a fine of at least $500 on a person convicted of not possessing the required vehicle insurance. She offered that Section 4 would change the notification process to send notification to the current address on file or else to the address provided on the accident report. 1:34:50 PM KERRY HENNINGS, Driver Licensing, Director's Office, Division of Motor Vehicles (DMV), Department of Administration (DOA), in response to Representative Dahlstrom, related that the division is "very happy" with HB 331. She stated that the changes contained in HB 331 will assist the DMV with its customer service and make it easier for people who have had vehicle accidents to prove they hold vehicle insurance. REPRESENTATIVE COGHILL offered his recollection that language contained in the bill passed the body last year in HB 184, sponsored by Representative Roses, although the provision was later removed in the other body. Thus, HB 184 passed the legislature last session without the driver's address of record issue addressed, he stated. Representative Coghill characterized HB 331 as a "very good" piece of legislation. CHAIR RAMRAS characterized HB 331 as a great "fix it bill." 1:36:00 PM MS. KOENEMAN, in response to a request by Representative Gruenberg, reiterated her explanation of HB 331. CHAIR RAMRAS, after first determining no one else wished to testify, closed public testimony on HB 331. REPRESENTATIVE GRUENBERG referred to Section 3 and inquired as to what the current penalty is for driving an uninsured vehicle. MS. KOENEMAN answered that the current penalty is a license suspension of 90 days to up to one year. She referred to a handout in the committee packet labeled, "State of Alaska - Division of Motor Vehicles, Certificate of Insurance" adding that the second to the last paragraph states the mandatory insurance. In response to Representative Gruenberg, Ms. Koeneman answered that the offense would be a class B misdemeanor. She pointed out that other states have imposed stronger penalties, such as Massachusetts whose penalty is up to $5,000 in fines and up to one year in jail. 1:39:51 PM REPRESENTATIVE GRUENBERG relayed his understanding that the penalty imposed would be a minimum fine of $500 and a class B misdemeanor. MS. HENNINGS answered she did not know, nor was she aware of whether it would be a civil penalty plus the fine. She stated that the DMV executes an administrative license suspension. REPRESENTATIVE GRUENBERG surmised, then, that the DMV would assess a reinstatement fee of $100-$500, plus a fine of $500, and the cost of insurance. MS. HENNINGS answered that DMV does not collect any fines. However, the court system would collect the fine. In response to Representative Gruenberg, Ms. Hennings answered that a reinstatement fee would apply to any license suspension, and depending on the person's driving record would be required to pay a fee ranging between $100- $500 for a revocation. 1:41:54 PM REPRESENTATIVE GRUENBERG surmised that if HB 331 is adopted that a person could be subject to 90 days in jail, $2,000 fine, a $500 reinstatement fee, plus the cost of insurance. He expressed concern that these fines could be imposed in situations in which the mail is delayed. REPRESENTATIVE DAHLSTROM offered her understanding that it is the individual's responsibility to keep the vehicle insurance current. REPRESENTATIVE GRUENBERG inquired as to whether the vehicle would also be impounded if proof of insurance is not in the vehicle. MS. KOENEMAN surmised that it would be up the individual municipalities to impose [impound fees.] REPRESENTATIVE GRUENBERG recalled that in the Municipality of Anchorage (MOA) the companies also charge a towing fee. He pointed out that in his district some people are on the fiscal margin. He expressed concern that the proposed penalties would harm many people. 1:43:55 PM REPRESENTATIVE DAHLSTROM recalled her own experiences and confirmed that the MOA have the ability to impound. She opined that HB 103 isn't strict enough. REPRESENTATIVE GRUENBERG argued that this bill would take away from the court the ability to suspend imposition of the $500 fee. He recapped the fees imposed under HB 103 would adversely impact some of his constituents to the extent that some might not be able to afford to get to work or would ignore the law. CHAIR RAMRAS offered his understanding that Representative Gara, co-sponsor of HB 103, previously spoke eloquently on the bill such that it would remedy the problem of the public facing the same charges administratively and that this bill was introduced to address similar concerns. MS. KOENEMAN explained that Section 4 was voted on by this body during the last legislative session. REPRESENTATIVE COGHILL offered his understanding that better notification is necessary since the notices are sometimes sent to the wrong address and the parties are unaware of the DMV requirement for proof of insurance as a result of a vehicle accident. Thus, this bill requires better notification and establishes an affirmative defense. 1:48:59 PM MS. KOENEMAN, in response to Representative Gruenberg, answered that she did not recall the details of the prior legislature's bill in terms of the fines imposed for each section. 1:50:01 PM REPRESENTATIVE DAHLSTROM moved to report CSHB 331(L&C) out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 331(L&C) was reported from the House Judiciary Standing Committee.