HB 409-DMV ID CARDS & REGISTRATION FEES  3:57:24 PM CHAIR KREISS-TOMKINS announced that the next order of business would be HOUSE BILL NO. 409, "An Act relating to identification cards; relating to vehicle registration fee rates; relating to changes of address; relating to driver's license fees; and relating to financial responsibility for motor vehicles." 3:58:00 PM CATHY SCHLINGHEYDE, Staff, Representative Jonathan Kreiss- Tomkins, Alaska State Legislature, advised that HB 409 was drafted at the request of the Department of Administration, Legislative Finance Sub-committee. The legislation updates and streamlines the statutes for greater efficiency at the Division of Motor Vehicles (DMV) and addresses some of the identified indirect expenditures in the division. He referred to the fiscal note [disbursed to the members at the beginning of this hearing] which estimates that the legislation would generate revenue of approximately $815,000 per year. 3:58:30 PM MS. SCHLINGHEYDE presented the sectional analysis and advised that Section 1 was specifically recommended by the Department of Administration, Legislative Finance Sub-committee. Section 1 standardizes the age for senior citizen fee waivers by changing the age for a senior citizen identification card from 60 to 65. MS. SCHLINGHEYDE advised that Section 2 allows a person to authorize the Division of Motor Vehicles (DMV) to update their address based on the United States Postal Service (USPS) database. Currently, even when the DMV realizes that an address was set up and updated at the post office, it must mail to what it knows is the wrong address, the mail then bounces back, and the DMV then reaches out to the person. This section allows the DMV to mail to the correct current address. MS. SCHLINGHEYDE advised that Section 3 removes the vehicle registration fee exemption for amateur radio operators, which is approximately 44 beneficiaries per year. MS. SCHLINGHEYDE advised that Section 4 is a statutory recommendation, it is an indirect expenditure of approximately $498,000 per year. Section 4 eliminates the exemption for municipalities and gives partial exemption to charitable organizations. Therefore, she explained, it would be a partial recovery of the indirect costs. MS. SCHLINGHEYDE advised that Section 5 sets the fee for DMV Knowledge Tests at $5 and raises the fee for DMV Road Tests from $15 to $25. She explained that this would both raise revenue for the state and increase efficiency at DMV by hopefully reducing the "no share rates," which is approximately 20 percent for the driving test. The current fail rate for the Knowledge Test, which has unlimited free attempts, is approximately 60 percent. 4:00:03 PM MS. SCHLINGHEYDE advised that Section 6 is statutory cleanup, it is various (indisc.) and accident reporting thresholds. The thresholds were originally set the same for DMV and the Department of Transportation & Public Facilities (DOTPF), that the report must be set when it is $501. The DOTPF has been updated and it is now a $2,000 threshold, but the DMV limit has not been updated or adjusted for inflation in 33 years. The threshold is currently set at $501 and this would raise the threshold to $2,000. MS. SCHLINGHEYDE explained that that amount is also in Sections 7-10, and 13, which is updating that threshold. MS. SCHLINGHEYDE advised that Section 11 adjusts the SR-22 requirement, vehicle liability insurance document for a high- risk insurance policy. People are required to carry SR-22 insurance after an accident or traffic offense, and this section requires the person to carry SR-22 insurance for 10 years rather than for a lifetime as that is an undue financial hardship. MS. SCHLINGHEYDE advised that Section 12 allows for a new installment payment plan, rather than automatic suspension of a license when the license is suspended due to an outstanding financial judgment. MS. SCHLINGHEYDE advised that Section 14 is cleanup for Section 2, allows updating DMV with address changes if the person has given permission to DMV to update addresses from the USPS database. 4:01:23 PM CHAIR KREISS-TOMKINS noted that this legislation is merely a starting point, it is an amalgam of indirect expenditure recommendations from the Legislative Finance Sub-committee and the DMV recommendations. REPRESENTATIVE WOOL referred to Section 11 regarding SR-22s, and said he assumes it has little to do with the DMV and is rather a policy call because buying SR-22 insurance is between the driver and the insurance company, and not the DMV. MS. SCHLINGHEYDE answered that the DMV statutes require proof of financial responsibility and the driver must submit a form to the DMV showing the SR-22 insurance was purchased. After ten years, this section would eliminate the requirement to submit that form to the DMV. REPRESENTATIVE WOOL advised that he had to buy SR-22 insurance at one point, but it was for a shorter period of time than 10 years. He asked whether it is currently that if a person has an accident, they must buy SR-22 insurance for life. 4:02:50 PM MARLA THOMPSON, Director, Division of Motor Vehicles (DMV), Department of Administration (DOA), responded that SR-22 insurance is not required, for most judgements, for more than a few years, but some judgements are for a lifetime and the DMV wanted to change it to ten years. She explained that it is "not for a normal DUI SR-22 because that is normally five years." REPRESENTATIVE WOOL requested a description of the level of infractions that would require lifetime SR-22 insurance. MS. THOMPSON deferred to Michael Stanker, Department of Law. 4:03:57 PM MICHAEL STANKER, Assistant Attorney General, Civil Division, Labor & State Affairs Section, Department of Law (DOL), advised that he would have to conduct additional research and get back to the committee as to all of the instances where SR-22 insurance is required, and for the length of time for those different conditions. [HB 409 was held over.]