HOUSE FINANCE COMMITTEE May 4, 1995 8:30 A.M. TAPE HFC 95-112, Side 1, #000 - end. TAPE HFC 95-112, Side 2, #000 - end. CALL TO ORDER Co-Chair Mark Hanley called the House Finance Committee meeting to order at 8:45 a.m. PRESENT Co-Chair Hanley Representative Martin Co-Chair Foster Representative Mulder Representative Brown Representative Navarre Representative Grussendorf Representative Parnell Representative Kelly Representative Therriault Representative Kohring ALSO PRESENT Senator Dave Donley; Mike Greany, Director, Legislative Finance Division; Cheryl Sutton, Staff, Representative Moses; Alan Schuler, Department of Environmental Conservation; Steve Torak, Chief of Operations, Environmental Protection Agency; Ed Crane, President, Alaska Commercial Fishing and Agricultural Bank. SUMMARY HB 284 An Act relating to the Alaska Commercial Fishing and Agriculture Bank. HB 284 was assigned to a subcommittee consisting of Representative Kelly as Chair and Representatives Brown and Therriault. SB 28 An Act repealing an additional fee for motor vehicle registration not conducted by mail and limiting motor vehicle emissions inspection to once every two years." CSSB 28 (FIN)(title am) was reported out of Committee with "no recommendation" and with two fiscal impact notes by the Department of Environmental Conservation dated 4/19/95, and Department of Public Safety dated 4/29/95. SENATE BILL NO. 28 "An Act repealing an additional fee for motor vehicle registration not conducted by mail and limiting motor vehicle emissions inspection to once every two years." SENATOR DAVE DONLEY spoke in support of SB 28. He noted that the Department of Environmental Conservation and the Division of Motor Vehicles (DMV) support SB 28 which would allow biennial motor vehicle emission inspection testing. He observed that the legislation grants additional enforcement authority to the Department of Environmental Conservation. The Department would be allowed to issue a $200.0 hundred dollar citation in lieu of a misdemeanor charge. He pointed out that prosecution expense will be averted with the issuances of a citation. He asserted that the legislation will save citizens time and money. In response to a question by Representative Therriault, Senator Donley clarified that the fee collected by DMV would be raised from $1.0 to $2.0 dollars. He reiterated that the Department of Environmental Conservation would be given direct enforcement authority. Representative Martin spoke in support of SB 28. He referred to similar legislation which he sponsored in the previous session. Representative Brown clarified that annual vehicle registration is not being changed. She asked if a biennial registration period was considered. She also questioned the effect on municipalities. Senator Donley emphasized that biennial inspection would make biennial registration easier. JUANITA HENSLEY, DIRECTOR, DIVISION MOTOR VEHICLES, DEPARTMENT OF PUBLIC SAFETY noted that the Division has not been able to initiate biennial registration due to piggy back programs such as the annual I/M inspection and the annual motor registration tax which is collected for municipalities. She observed that a statutory change may not be required to institute a biennial registration program. In response to a question by Representative Brown, Senator Donley explained that the effective dates are staggered to allow the Department of Environmental Conservation to issue citations as of July 1, 1995. He emphasized that the Department needs to show the Environmental Protection Agency that they have enforcement authority. The implementation of biennial inspections would begin July 1, 1996. Representative Kohring spoke in support of SB 28. He summarized that the cost of the program will be covered by program receipts. Ms. Hensley stressed that the Division of Motor Vehicles will not receive additional funds. She observed that the Department of Environmental Conservation will collect program receipts as a result of the $200.0 hundred dollar fine. In response to a question by Representative Therriault, Senator Donley observed that SB 28 was passed unanimously in the Senate. He stated that there is no municipal opposition since local taxes will not be impacted. STEVE TORAK, CHIEF OF STATE OPERATIONS, ENVIRONMENTAL PROTECTION AGENCIES cautioned members that Anchorage and Fairbanks still need to continue monitoring their air quality. He compare the I/M Program to a prescription of an antibiotic. He emphasized the need to take the full prescription. Representative Mulder asked the status of the Mat-Su Valley. ALAN SCHULER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION responded that Mat-Su Valley commuters are required to participate in the I?M Program. He explained that the Department intends to phase the inspection starting July 1, 1996. He noted that the Department would prepare regulations stated that half the cars inspected between July 1, 1996 and June 30, 1997 would receive a two year inspection certificate. Thee other remaining half would receive a one year certificate inspection. If the vehicle is 1987 or older and has not been inspected within twelve months of sale or transfer of title the car would be required to have an inspection. Representative Therriault noted that cars registered at the I/M inspection station could have the $10.0 dollar registration fee waived. Ms. Hensley noted that a pilot program has been expanded to allow any inspection station to offer the registration. She noted that stations are buying their own computer equipment. There is no cost to the State other than storage space for data processing. She observed that the program will be expanded to Fairbanks. The program is optional. She stressed that the $10.0 fee is an attempt to get people out of DMV lines. She stated that the inspections stations could initiate a processing fee to cover the registrations. Representative Therriault observed that the Department of Environmental Conservation has no other authorization to assess an administration penalties. Representative Mulder asked how vehicles that are not in compliance would be identified. Mr. Schuler stated that up- to-date registration tags indicate that the inspection certificate has been obtained. He noted that the use of window stickers are being considered. Ms. Hensley observed that the Department of Environmental Conservation would not be issuing an administrative fine. The Department will be issuing a court fine which is set at $200.0 hundred dollars. Representative Therriault acknowledged the benefit to the public that the two year inspection represents. Representative Brown spoke in support of the legislation. She MOVED to report CSSB 28 (FIN)(title am) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. ADJOURNMENT The meeting adjourned at 10:00 a.m. The method of determining which half would be