ALASKA STATE LEGISLATURE  HOUSE TRANSPORTATION STANDING COMMITTEE  March 7, 2023 1:00 p.m. MEMBERS PRESENT Representative Kevin McCabe, Chair Representative Sarah Vance, Vice Chair Representative Tom McKay Representative Craig Johnson Representative Jesse Sumner Representative Louise Stutes Representative Genevieve Mina MEMBERS ABSENT  All members present COMMITTEE CALENDAR  HOUSE BILL NO. 81 "An Act relating to the transfer of a title on the death of the owner; and providing for an effective date." - MOVED HB 81 OUT OF COMMITTEE PREVIOUS COMMITTEE ACTION  BILL: HB 81 SHORT TITLE: VEHICLES/BOATS: TRANSFER ON DEATH TITLE SPONSOR(s): REPRESENTATIVE(s) RAUSCHER 02/22/23 (H) READ THE FIRST TIME - REFERRALS 02/22/23 (H) TRA, STA 03/02/23 (H) TRA AT 1:00 PM BARNES 124 03/02/23 (H) Heard & Held 03/02/23 (H) MINUTE(TRA) 03/07/23 (H) TRA AT 1:00 PM BARNES 124 WITNESS REGISTER REPRESENTATIVE GEORGE RAUSCHER Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor, answered questions on HB 81. TIFFANY THOMAS, Deputy Director Division of Motor Vehicles Department of Administration Anchorage, Alaska POSITION STATEMENT: Answered questions relating to the Department of Motor Vehicles, during a hearing on HB 81. ACTION NARRATIVE 1:00:29 PM CHAIR KEVIN MCCABE called the House Transportation Standing Committee meeting to order at 1:00 p.m. Representatives Johnson, McKay, Vance, Sumner, and McCabe were present at the call to order. Representatives Mina and Stutes arrived as the meeting was in progress. HB 81-VEHICLES/BOATS: TRANSFER ON DEATH TITLE  1:01:05 PM CHAIR MCCABE announced that the only order of business would be HOUSE BILL NO. 81, "An Act relating to the transfer of a title on the death of the owner; and providing for an effective date." 1:02:12 PM REPRESENTATIVE VANCE asked if HB 81 impacts commercial vessels. 1:02:39 PM REPRESENTATIVE GEORGE RAUSCHER, Alaska State Legislature, as prime sponsor of HB 81, answered yes. 1:03:07 PM CHAIR MCCABE commented that when HB 81 was first heard, there were no fiscal notes. He relayed fiscal notes from previous iterations of the legislation; there was a zero fiscal note in 2016, a $60,000 fiscal note in 2019, and today the bill has a $70,000 fiscal note. He said the quick increase is concerning but there has been no indication in how much the Alaska Department of Administration (DOA) would make if it were to start charging a fee on [Transfer On Death (TOD) titles]. He stated that the fiscal note should be indeterminate because it is unknown as to what the revenue would be. 1:05:00 PM The committee took an at-ease from 1:05 p.m. to 1:08 p.m. 1:08:48 PM CHAIR MCCABE relayed that there are concerns with the fiscal note. He informed members Tiffany Thomas with the Division of Motor Vehicles (DMV) is on the phoneline; he asked Ms. Thomas about the $75,000 fiscal note and why it is not an indeterminate note. 1:10:00 PM TIFFANY THOMAS, Deputy Director, Division of Motor Vehicles, Department of Administration, responded that the costs were implemented due to the programmatic changes that would need to be made to implement the title document language that would be put on the title itself. CHAIR MCCABE pointed out that the verbiage on the fiscal note explained that 600 hours are needed to make the changes. He asked Ms. Thomas to confirm that information. MS. THOMAS answered yes, 600 hours is the number estimated by the DMV's program team. Regarding the $75,000, the statutory mechanism for fees is already in statute, so that is why nothing was added into the fiscal note, it was to not change the fee structure. 1:12:18 PM REPRESENTATIVE STUTES questioned how the fiscal note can go from zero in 2016, to $75,000 today. She expressed that it's odd that initially DOA could absorb the costs, but now it will cost 600 hours. She asked Ms. Thomas how the fiscal note can go from zero to $75,000. MS. THOMAS responded that she would need to do research and follow up to provide an answer. 1:13:14 PM REPRESENTATIVE C. JOHNSON asked if all state programmers are making $120 per hour. MS. THOMAS explained that the programmers are hired through the DOA Office of Information Technology (OIT). 1:13:41 PM REPRESENTATIVE VANCE suggested that the committee hear from OIT since HB 81 requires about four months of work solely on a change to TOD title servicing. She said that is not efficient work and challenges the fiscal note. 1:14:22 PM REPRESENTATIVE C. JOHNSON suggested that the committee send an indeterminate fiscal note to the House Judiciary Standing Committee. He pointed out there are members of that committee in the House Transportation Standing Committee. He said sound policy for transportation means passing HB 81. CHAIR MCCABE offered his understanding that the next committee of referral was to the House State Affairs Standing Committee, and he posited that committee could make the same consideration. 1:15:04 PM REPRESENTATIVE VANCE moved that the fiscal note for HB 81 be changed to indeterminate for operating expenditures and changes in revenues. There being no objection, it was so ordered. 1:15:29 PM REPRESENTATIVE STUTES asked for clarification regarding the next committees of referral. CHAIR MCCABE answered that following the House Transportation Standing Committee, HB 81 would be heard by the House State Affairs Standing Committee next, and then it could be referred to the House Finance Committee - if the fiscal note cannot be reconciled. 1:15:50 PM REPRESENTATIVE VANCE moved to report HB 81 out of committee with individual recommendations and the accompanying amended, indeterminate fiscal note. There being no objection, HB 81 was reported out of the House Transportation Standing Committee. 1:16:44 PM ADJOURNMENT  There being no further business before the committee, the House Transportation Standing Committee meeting was adjourned at 1:17 p.m.