Legislature(2017 - 2018)ADAMS ROOM 519

04/17/2018 09:00 AM House FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
<Bill Hearing Canceled>
-- Public Testimony --
Moved CSSB 185(EDC) Out of Committee
-- Public Testimony --
Heard & Held
-- Public Testimony --
Moved CSHB 409(FIN) Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
Heard & Held
Moved HCS CSSB 92(FIN) Out of Committee
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                                                                    
1:36:57 PM                                                                                                                    
CATHY  SCHLINGHEYDE,  STAFF, REPRESENTATIVE  KREISS-TOMKINS,                                                                    
explained that the bill was  a House State Affairs Committee                                                                    
bill derived from a combination  of recommendations from the                                                                    
Department    of   Administration    finance   subcommittee,                                                                    
Legislative   Finance    Division's   indirect   expenditure                                                                    
reports, and some statutory clean  up ideas submitted by the                                                                    
Division  of   Motor  Vehicles   (DMV).  She   reviewed  the                                                                    
sectional analysis (copy on file):                                                                                              
     Section 1: This section standardizes the age for                                                                           
     senior citizen fee waivers by changing the age for a                                                                       
     senior citizen identification card from 60 to 65.                                                                          
Ms.  Schlingheyde   detailed  that  currently   the  vehicle                                                                    
registration  waiver went  into effect  when someone  turned                                                                    
65.  However,  the qualifying  age  for  the senior  citizen                                                                    
identification  card  fee  waiver  was 60.  The  bill  would                                                                    
standardize the qualifying age to 65 for both.                                                                                  
     Section 2:  This section allows  a person  to authorize                                                                    
     the Division  of Motor Vehicles  (DMV) to  update their                                                                    
     address  based  on  the United  States  Postal  Service                                                                    
     (USPS) database.                                                                                                           
Ms.  Schlingheyde  elaborated  that currently  if  a  person                                                                    
updated their  address at the post  office without notifying                                                                    
DMV, the agency had to send  mail to the wrong address, wait                                                                    
for the mail  to bounce back, and then seek  out the correct                                                                    
address.  She  explained  the process  cost  money  and  was                                                                    
     Section   3:   This   section   removes   the   vehicle                                                                    
     registration   fee   exemption    for   amateur   radio                                                                    
     Section   4:   This    section   raises   the   vehicle                                                                    
     registration  fee for  municipalities  to the  standard                                                                    
     $100,  and  raises  the vehicle  registration  fee  for                                                                    
     charitable organizations to $50.                                                                                           
     Section 5: This section sets  the fee for DMV Knowledge                                                                    
     Tests at $5 and raises the  fee for DMV Road Tests from                                                                    
     $15 to $25.                                                                                                                
Ms. Schlingheyde  elaborated that  Section 5  would generate                                                                    
revenue and reduce the no-show rate.                                                                                            
     Section  6:  This  section  raises  the  threshold  for                                                                    
     requiring  deposit  of security  to  DMV  from $501  to                                                                    
     $2,000 to  align with the  standard for  the Department                                                                    
     of Transportation (DOT).                                                                                                   
     Section  7:  This  section  raises  the  threshold  for                                                                    
     requiring   a   peace   officer  to   provide   written                                                                    
     notification  about  the   requirements  in  the  Motor                                                                    
     Vehicle Safety Responsibility Act from $501 to $2,000.                                                                     
     Section  8:  This  section  raises  the  threshold  for                                                                    
     accepting release  from liability executed by  a parent                                                                    
     or legal  guardian on  behalf of a  minor from  $501 to                                                                    
     Section  9:  This  section  raises  the  threshold  for                                                                    
     requiring  proof of  financial  responsibility after  a                                                                    
     traffic offense from $501 to $2,000.                                                                                       
     Section  10:  This  section raises  the  threshold  for                                                                    
     requiring  proof of  financial responsibility  after an                                                                    
     accident from $501 to $2,000.                                                                                              
Ms.  Schlingheyde  expounded  that  Sections  6  through  10                                                                    
increased  the reporting  thresholds  for various  accidents                                                                    
and crashes. Currently  the thresholds were $501  at the DMV                                                                    
and $2,000  at the  Department of Transportation  and Public                                                                    
Facilities (DOT).  The bill would standardize  the threshold                                                                    
at  the DOT  rate of  $2,000; the  DMV number  had not  been                                                                    
updated for inflation for 33 years.                                                                                             
     Section 11:  This section  requires proof  of financial                                                                    
     responsibility  after   a  license  is   suspended  for                                                                    
     failure  to pay  a  judgement be  maintained for  three                                                                    
     years,  rather than  the  existing lifetime  provision.                                                                    
     The section also changes the  requirement to hold proof                                                                    
     of    financial    responsibility    after    judgement                                                                    
     satisfaction  only if  the failure  to pay  was due  to                                                                    
     driving while uninsured.                                                                                                   
Ms.   Schlingheyde  addressed   SR-22   insurance,  a   type                                                                    
insurance   required   after  certain   vehicle   accidents.                                                                    
Insurance companies  were required to submit  SR-22 forms to                                                                    
notify  DMV  if a  person's  insurance  lapsed. The  section                                                                    
required SR-22 insurance  for a lifetime if  a person failed                                                                    
to pay a judgement within 30  days. The bill changed the SR-                                                                    
22 requirement for failure to pay  within 30 days to 3 years                                                                    
and it  would only kick in  if the person was  driving while                                                                    
     Section 12:  This section allows  for a  second payment                                                                    
     plan   in  installments   for  people   facing  license                                                                    
     suspension based on outstanding financial judgements.                                                                      
     Section  13:  This  section raises  the  threshold  for                                                                    
     showing  proof  of  motor vehicle  liability  insurance                                                                    
     from $501 to $2,000.                                                                                                       
     Section  14: This  section removes  the requirement  to                                                                    
     update  DMV  with address  changes  if  the person  has                                                                    
     given permission  for DMV to update  addresses from the                                                                    
     USPS database.                                                                                                             
Ms. Schlingheyde  elaborated that  Section 14  was statutory                                                                    
cleanup for the post office  update. She explained that if a                                                                    
person allowed  DMV to  update their  address based  off the                                                                    
post office, they did not have to notify DMV.                                                                                   
1:40:27 PM                                                                                                                    
Representative Kawasaki  referred to  Sections 6  through 10                                                                    
and 13  dealing with  the inflationary adjustment.  He asked                                                                    
what happened in  cases where a vehicle was  worth less than                                                                    
Ms. Schlingheyde  responded that  the judgement  would still                                                                    
have to  be paid. The  threshold had  to be reported  to DMV                                                                    
and DOT for  certain accidents, but it would  not negate the                                                                    
requirement  for an  insurance company  or an  individual to                                                                    
compensate for damages.                                                                                                         
Representative  Kawasaki   referred  to  Section   3,  which                                                                    
removed an exemption for amateur  radio operators. He shared                                                                    
that he  had an amateur  radio operator in his  district. He                                                                    
wondered why the  bill would remove the  exemption. He asked                                                                    
if the reasoning was because  the exemption was infrequently                                                                    
Ms. Schlingheyde indicated there were  only 44 people in the                                                                    
state who currently had the exemption.                                                                                          
Representative  Kawasaki asked  Ms.  Schlingheyde to  review                                                                    
Sections 11  and 12. He  believed he liked the  sections and                                                                    
wondered how they had been  brought into the bill that dealt                                                                    
mostly with adjustments and indirect expenditures.                                                                              
Ms.  Schlingheyde  responded  that both  sections  had  been                                                                    
recommended by DMV. She elaborated  that DMV had worked with                                                                    
many individuals  who had issues  with the SR-22.  She added                                                                    
that  DMV   was  available  for  questions.   Currently  the                                                                    
insurance was required  for five years in the case  of a DUI                                                                    
and for  a lifetime  after four  DUIs. The  section required                                                                    
SR-22 insurance for  a lifetime if a person failed  to pay a                                                                    
judgement within 30 days, which  was disproportionate to the                                                                    
rest of  the statute. The bill  would bring it in  line with                                                                    
the penalty  for driving while  uninsured or on  a suspended                                                                    
1:42:31 PM                                                                                                                    
Representative  Kawasaki referenced  Section 4  dealing with                                                                    
vehicle registration fees  for municipalities and charitable                                                                    
organizations.  He  asked  for verification  that  like  the                                                                    
state,   currently    municipalities   were    exempt   from                                                                    
registration fees.                                                                                                              
Ms.  Schlingheyde  responded that  municipalities  currently                                                                    
paid  a  $10  registration  fee,  which  was  a  90  percent                                                                    
Representative Kawasaki asked  what charitable organizations                                                                    
currently   paid.  Ms.   Schlingheyde  responded   that  the                                                                    
registration fee for charitable organizations was also $10.                                                                     
Representative   Tilton  asked   whether  the   post  office                                                                    
database   provision  in   Section   1   was  optional   for                                                                    
Ms. Schlingheyde  confirmed is was optional  for individuals                                                                    
and  was   only  based  on  permanent   address  changes.  A                                                                    
temporary  forwarding of  mail would  not affect  a person's                                                                    
registration at DMV.                                                                                                            
Representative  Pruitt  asked  for  verification  Section  1                                                                    
would apply  to any  mail correspondence with  DMV including                                                                    
license  and registration  renewal.  He shared  that at  one                                                                    
point  DMV had  sent  his registration  renewal  to his  old                                                                    
Ms. Schlingheyde responded in the affirmative.                                                                                  
1:44:22 PM                                                                                                                    
Representative Pruitt referred to  Sections 6 through 10 and                                                                    
13 that would increase  the threshold [for requiring deposit                                                                    
of security  to DMV] from $501  to $2,000. He noted  that it                                                                    
was difficult to determine the  distinction between $500 and                                                                    
$2,000 damage on a vehicle.  He recalled a situation where a                                                                    
police officer  had specified that  damage to a car  did not                                                                    
appear to  be over $500;  however, the damage had  been over                                                                    
$5,000. He  had been fortunate that  insurance companies had                                                                    
managed the situation. He asked  how to determine whether to                                                                    
contact  a  police  officer to  have  them  participate.  He                                                                    
continued  that having  a police  officer  document that  an                                                                    
accident took place and what  occurred could be a huge asset                                                                    
to an individual dealing with  damage to a vehicle. He asked                                                                    
how individuals  should deal with  accidents when  trying to                                                                    
figure out how to manage going forward.                                                                                         
Ms.  Schlingheyde responded  that the  sections in  the bill                                                                    
did  not  address  the  issue of  calling  the  police,  but                                                                    
whether they  had to file  certain forms with DMV  after the                                                                    
accident.  Individuals would  have time  to assess  what the                                                                    
damage level  was. She  deferred to  DMV for  any additional                                                                    
1:46:18 PM                                                                                                                    
Co-Chair Foster  indicated the committee had  been joined by                                                                    
the bill sponsor.                                                                                                               
REPRESENTATIVE  JONATHAN  KREISS-THOMKINS, SPONSOR,  thanked                                                                    
the committee for hearing the bill.                                                                                             
Representative  Pruitt  referenced   Section  7  that  would                                                                    
increase  the threshold  for requiring  a  peace officer  to                                                                    
provide written  notification about the requirements  in the                                                                    
Motor  Vehicle  Safety  Responsibility   Act  from  $501  to                                                                    
$2,000. He stated while it  was related to the suspension of                                                                    
an operator's  license or driving privileges,  it involved a                                                                    
police  officer assessing  what  the damage  was. He  stated                                                                    
that currently  officers could look  at the side  of caution                                                                    
because $500 was  a small amount, but $2,000  was four times                                                                    
that amount.  He was concerned  about putting  an individual                                                                    
in a position where they did  not have an officer present to                                                                    
provide credible  assistance and determine the  damage value                                                                    
that may be needed in a judicial proceeding later.                                                                              
Co-Chair Foster indicated that DMV was available online.                                                                        
Ms. Schlingheyde noted that they  did assess $2,000 worth of                                                                    
damage  currently   for  reports   to  DOT.   Currently  two                                                                    
thresholds  were reported  on -  $500 to  DMV and  $2,000 to                                                                    
DOT. The bill would change  the reporting requirement to one                                                                    
threshold amount.                                                                                                               
1:49:28 PM                                                                                                                    
Representative Pruitt  spoke to the requirement  of a police                                                                    
officer  to assist  a person  who had  been in  an accident.                                                                    
With the higher threshold  he believed police officers would                                                                    
be less likely to assist and  more likely to give a card out                                                                    
because it  was difficult to  tell how much damage  had been                                                                    
done. He believed officers could  err on the side of caution                                                                    
when it did not appear  significant damage had been done. He                                                                    
stated that with  the higher threshold more  damage could be                                                                    
done, and it  would be easier for an officer  to merely hand                                                                    
a  card out  as opposed  to writing  a report.  He stated  a                                                                    
report by  a police officer  could assist an  individual and                                                                    
operate as  a credible  witness later on.  He asked  how the                                                                    
threshold would be administered,  how a police officer would                                                                    
deal with  the reporting,  and how  the change  would impact                                                                    
people involved in an accident.                                                                                                 
MARLA  THOMPSON,  DIRECTOR,   DIVISION  OF  MOTOR  VEHICLES,                                                                    
DEPARTMENT  OF  ADMINISTRATION (via  teleconference),  spoke                                                                    
about  the   goal  of   updating  the   discrepancy  between                                                                    
reporting a person's insurance to  DMV for everything at and                                                                    
above $501  and reporting an  accident and insurance  on the                                                                    
DOT form. The goal was to only have one threshold.                                                                              
Representative Pruitt  wondered if the small  tweaks did not                                                                    
necessitate  an individual  to have  something put  on their                                                                    
record if the damage was less than $2,000.                                                                                      
Ms.  Thompson agreed.  Previously,  if a  person  was in  an                                                                    
accident  and damage  was over  $500 they  were supposed  to                                                                    
report the accident  to DMV and provide  proof of insurance.                                                                    
The bill would  clean up the thresholds; if a  person was in                                                                    
an  accident  they would  fill  out  the DOT  report,  which                                                                    
included  their  insurance  information  -  the  bill  would                                                                    
eliminate confusion  by cutting out extra  requirements that                                                                    
people did not know they were supposed to do.                                                                                   
1:52:54 PM                                                                                                                    
Co-Chair Foster  stated his understanding that  currently if                                                                    
an accident  involved damages exceeding $500,  an individual                                                                    
was required  to submit a form  to DMV online. He  asked for                                                                    
detail about the DOT report requirement.                                                                                        
Ms.  Thompson responded  that  the DOT  report  was a  crash                                                                    
report  that  individuals were  required  to  fill out  (the                                                                    
report was often filled out  by police officers at the crash                                                                    
site). The  report also included the  individual's insurance                                                                    
Co-Chair Foster  summarized that under the  legislation if a                                                                    
person had a  crash they did not have to  submit a report to                                                                    
DMV if they believed damages  were under $2,000. However, if                                                                    
the  person  believed  the   damages  exceeded  $2,000  they                                                                    
contacted a police officer. He asked for clarification.                                                                         
Ms. Thompson responded that $2,000  was a substantial number                                                                    
and most of  the time the police would fill  out the report;                                                                    
if the  officer did not fill  out the report, they  tell the                                                                    
individual what to fill out.  The report included a person's                                                                    
insurance  information, meaning  they only  had to  fill out                                                                    
one report, which was shared with DOT.                                                                                          
Vice-Chair Gara  stated that in  2017 there had been  a bill                                                                    
on Real ID; in the later  stages of the bill the license fee                                                                    
had been  increased substantially  in his view.  He recalled                                                                    
the  fee   was  significantly   higher  than  the   cost  of                                                                    
administering  the license.  He  asked Ms.  Thompson if  she                                                                    
remembered the  proposed license  fee and  the fee  that had                                                                    
ultimately been adopted. He wondered  what fee level (in the                                                                    
current legislation) would be cost neutral.                                                                                     
Ms. Thompson reported  that the fee was $20,  which had been                                                                    
changed in the end. She  believed DMV's original request had                                                                    
been  $10  and   then  $5.  The  cost   neutral  amount  was                                                                    
approximately $5.                                                                                                               
1:55:48 PM                                                                                                                    
Vice-Chair Gara asked  for verification that the  $20 was in                                                                    
addition  to  the  regular driver's  license.  Ms.  Thompson                                                                    
replied in the affirmative.                                                                                                     
Vice-Chair Gara  asked for the  total Real ID  license cost.                                                                    
Ms. Thompson  answered that a  regular driver's  license was                                                                    
$20, and a Real ID was $15.                                                                                                     
Vice-Chair  Gara asked  for verification  that  the Real  ID                                                                    
license cost $40.  Ms. Thompson responded that  the cost was                                                                    
$40,  but the  extension had  increased  from 5  years to  8                                                                    
Representative Wilson stated that  several years back a bill                                                                    
contained a  provision allowing people to  pay an additional                                                                    
$25 for vehicles  older than eight years,  meaning the owner                                                                    
did not have  to buy another registration until  the car was                                                                    
sold.  She asked  if the  sponsor would  be amenable  to the                                                                    
deletion of AS 28.10.155, which would remove the exemption.                                                                     
Representative   Kreiss-Tompkins  responded   that  he   had                                                                    
reviewed the indirect expenditure  report. He stated that it                                                                    
was a substantial  indirect expenditure and he  had been let                                                                    
down to  find that the  anticipated cost of  the expenditure                                                                    
had  not  yet been  calculated  by  the Legislative  Finance                                                                    
Division.  He recalled  when the  exemption had  been passed                                                                    
and he  would be amenable  to the change, which  he believed                                                                    
created further reduction of indirect expenditures.                                                                             
1:57:53 PM                                                                                                                    
Representative Wilson explained that  the exemption had been                                                                    
automatic for  individuals in  an unorganized  area, whereas                                                                    
organized areas had to vote  on the exemption. Anchorage did                                                                    
not take the  exemption because it utilized  a different tax                                                                    
on vehicles.  She noted that  Fairbanks took  the exemption;                                                                    
she  did not  have detail  on other  locations. Part  of the                                                                    
reason the exemption  had been passed was  because the state                                                                    
had money and DMV was making  more money than it needed. She                                                                    
did  not believe  the state  was  in the  same position  any                                                                    
longer. She  thought it  was time  to remove  the exemption.                                                                    
She reasoned her  10-year-old car probably wore  on the road                                                                    
as much as 3-year-old vehicles.                                                                                                 
Representative   Kawasaki  asked   Ms.   Thompson  for   the                                                                    
approximate vehicle registration costs.                                                                                         
Ms.  Thompson answered  that she  would follow  up with  the                                                                    
information.  She  detailed  that  the rates  had  not  been                                                                    
increased recently.  There were things  like $15 for  a road                                                                    
test that DMV was trying to increase to $25 to cover costs.                                                                     
Representative Kawasaki  noted Section  4 of the  bill would                                                                    
raise  registration rates  from  $10 to  $50  for a  vehicle                                                                    
owned by a charitable organization  and from $10 to $100 for                                                                    
vehicles owned  by municipalities. He wondered  if the state                                                                    
would suddenly  be making money  rather than  breaking even.                                                                    
He understood  it was difficult  to suss out the  total cost                                                                    
because  of the  various work  done  by the  agency. He  was                                                                    
trying to come up with a reasonable amount.                                                                                     
Ms.  Thompson replied  that in  the fiscal  note showed  the                                                                    
registration changes  with the difference  in municipalities                                                                    
and charities separately.                                                                                                       
2:00:38 PM                                                                                                                    
Representative Guttenberg  asked if  the division had  a way                                                                    
to  parse  out how  long  it  took  when individuals  got  a                                                                    
vehicle registration  or a  license, had  difficulty getting                                                                    
registration,  or did  not have  sufficient information.  He                                                                    
was  interested  in   how  long  each  of   the  items  took                                                                    
separately and  where the cost drivers  resided. He provided                                                                    
various  examples of  different things  individuals came  to                                                                    
DMV for.                                                                                                                        
Ms.  Thompson  answered  that  she   tracked  the  wait  and                                                                    
transaction times across the  state. The average transaction                                                                    
time was about seven minutes.                                                                                                   
Representative Guttenberg  stated that  when he went  to DMV                                                                    
he  observed  that  some   people  were  having  significant                                                                    
difficulty.  He  stated  that he  typically  had  basic  and                                                                    
simple business to conduct; however,  he did not think seven                                                                    
minutes was  the average  time it  took when  he went  in to                                                                    
renew  something. He  wondered about  the time  it took  for                                                                    
someone  with  an  out-of-state license  to  get  an  Alaska                                                                    
license in comparison to other items.                                                                                           
Ms. Thompson  replied that she  could probably come  up with                                                                    
some  averages on  registration and  driver's licenses.  She                                                                    
did  not know  whether she  could  parse down  to the  level                                                                    
Representative Guttenberg  was looking for, but  she offered                                                                    
to come up with some figures.                                                                                                   
Representative  Guttenberg clarified  that he  did not  need                                                                    
the figures,  but was  trying to determine  how easy  it was                                                                    
for DMV to come up with the data.                                                                                               
2:04:04 PM                                                                                                                    
Representative  Kreiss-Tompkins followed  up  on an  earlier                                                                    
question  by Representative  Wilson. He  explained when  the                                                                    
initial authorizing  legislation that created  the permanent                                                                    
vehicle  registration   passed  it   had  not   contained  a                                                                    
provision  from   an  earlier  version  that   gave  blanket                                                                    
statewide applicability  in the  fiscal note where  the cost                                                                    
had been  estimated at $20  million per year.  The exemption                                                                    
had been tightened up since that  time. He noted it could be                                                                    
a  little complicated  to  eliminate  the exemption  because                                                                    
permanent  vehicle registration  was at  a higher  rate than                                                                    
normal vehicle  registration. He  thought there may  need to                                                                    
be  an  accommodation  or  transition  incorporated  if  the                                                                    
permanent vehicle registration was eliminated.                                                                                  
Representative Wilson  explained that the  permanent vehicle                                                                    
registration  cost   the  typical   two-year  fee   plus  an                                                                    
additional  $25. She  explained  that  individuals with  the                                                                    
exemption would  have to be grandfathered  in. She explained                                                                    
[the removal of  the exemption] would stop  the bleeding and                                                                    
bring  in a  portion of  the $20  million. She  reported she                                                                    
would work  with the sponsor  on an amendment but  would not                                                                    
hold the bill up in committee.                                                                                                  
Co-Chair Foster OPENED and CLOSED public testimony.                                                                             
2:06:52 PM                                                                                                                    
Representative Kawasaki MOVED  to ADOPT conceptual Amendment                                                                    
1  on page  2, line  22.  The amendment  would maintain  the                                                                    
current   $10  vehicle   registration  fee   for  charitable                                                                    
organizations instead of the proposed $50 fee.                                                                                  
Representative Wilson  OBJECTED. She asked about  the impact                                                                    
and queried the number of charitable organization licenses.                                                                     
Co-Chair Seaton pointed to the  third paragraph on page 2 of                                                                    
the  fiscal note  that specified  there were  2,657 vehicles                                                                    
registered  to charitable  organizations.  The  new $50  fee                                                                    
would generate  an additional $106,280. Due  to the two-year                                                                    
registration cycle  the additional yearly revenue  for FY 19                                                                    
and FY 20 would be $53,140.                                                                                                     
Representative Wilson did not believe  $25 per year [$50 for                                                                    
two years] was  drastic. She remarked that the  bill did not                                                                    
increase the fee as high as it could have (to $100).                                                                            
2:08:52 PM                                                                                                                    
Representative Kawasaki noted there  had been discussion the                                                                    
previous  day  about  the  public,  private,  and  nonprofit                                                                    
sectors. He stated the nonprofit  sector worked closely with                                                                    
Alaska's  public sector.  He elaborated  that the  nonprofit                                                                    
sector thrived  and fell  based on  the state's  economy. He                                                                    
reasoned nonprofits provided more  services. At a time where                                                                    
the public  sector was trying  to find money,  the nonprofit                                                                    
sector was also trying to  scrape by. He reported the senior                                                                    
center in his district that  ran the Meals on Wheels program                                                                    
probably took advantage of the  $10 registration. He did not                                                                    
believe $40 would break the  bank for the nonprofits, but it                                                                    
did not  seem right  to add to  their burdens.  He supported                                                                    
deferring their burdens longer.                                                                                                 
Representative   Grenn   provided   some  context   as   the                                                                    
Department  of  Administration finance  subcommittee  chair.                                                                    
The  Legislative   Finance  Division   indirect  expenditure                                                                    
report noted  that the  discount had  started in  1978. When                                                                    
the discount was  first offered only a  few hundred vehicles                                                                    
were eligible,  compared to the  current number of  close to                                                                    
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
A roll call vote was taken on the motion.                                                                                       
IN FAVOR: Guttenberg, Kawasaki, Foster                                                                                          
OPPOSED:  Thompson,  Tilton,  Wilson,  Gara,  Grenn,  Ortiz,                                                                    
Pruitt, Seaton                                                                                                                  
The MOTION to adopt conceptual Amendment 1 FAILED (3/8).                                                                        
2:11:28 PM                                                                                                                    
AT EASE                                                                                                                         
2:13:10 PM                                                                                                                    
Representative  Wilson MOVED  to ADOPT  conceptual Amendment                                                                    
     Delete 8-year-old car exemption in Sec. 28.10.155.                                                                         
     Permanent motor vehicle registration.                                                                                      
     Except  for   anyone  who   already  has   a  permanent                                                                    
     registration  and  the permanent  registration  expires                                                                    
     when the  owner transfers or assigns  the owner's title                                                                    
     or interest in the vehicle.                                                                                                
Co-Chair Seaton OBJECTED for discussion.                                                                                        
Representative  Wilson explained  that  the amendment  would                                                                    
remove the  8-year-old car permanent  registration exemption                                                                    
under  AS 28.10.155.  She explained  that currently  someone                                                                    
could  pay a  fee  plus $25,  which  exempted their  vehicle                                                                    
[from  another   registration  fee]  until  they   sold  the                                                                    
vehicle. She elaborated  that when the vehicle  was sold the                                                                    
new owner had to reregister and pay the fee.                                                                                    
Co-Chair  Seaton  asked for  verification  that  when a  new                                                                    
owner purchased  a car  that had  previously been  under the                                                                    
exemption, they would pay the regular registration fee.                                                                         
Representative  Wilson  replied  in the  affirmative.  There                                                                    
would  no longer  be  an  exemption; therefore,  individuals                                                                    
would pay a two-year registration fee like everyone else.                                                                       
Co-Chair Seaton WITHDREW his OBJECTION.                                                                                         
Representative Thompson  OBJECTED. He  stated that  a person                                                                    
over  the   age  of  65   could  get  a   permanent  vehicle                                                                    
registration.  He  asked   for  verification  the  exemption                                                                    
addressed by the amendment was separate.                                                                                        
Representative Wilson answered  that Representative Thompson                                                                    
was  referencing a  different  statute.  She clarified  that                                                                    
individuals  over the  age of  65 were  allowed a  permanent                                                                    
vehicle registration for one vehicle.                                                                                           
Representative Thompson WITHDREW his OBJECTION.                                                                                 
There  being NO  further OBJECTION,  Conceptual Amendment  2                                                                    
was ADOPTED.                                                                                                                    
2:15:49 PM                                                                                                                    
Representative Kawasaki stated that  he had planned to offer                                                                    
a    separate    conceptual     amendment    dealing    with                                                                    
municipalities. He detailed that  the fee for municipalities                                                                    
would  increase  from $10  to  $100.  He remarked  that  the                                                                    
legislature had done  numerous things in the  past couple of                                                                    
years to  harm municipal governments, including  school bond                                                                    
debt   reimbursement,  reduced   revenue  sharing,   reduced                                                                    
capital  budget,  and  reduced  education.  He  thought  the                                                                    
increased   fee   would   add  an   additional   burden   to                                                                    
municipalities  at  a time  when  they  were having  trouble                                                                    
making ends meet.  He appreciated the bill and  would not be                                                                    
offering the amendment.                                                                                                         
2:16:21 PM                                                                                                                    
Vice-Chair  Gara reviewed  the  previously published  fiscal                                                                    
impact  note from  the  Department  of Administration,  DMV.                                                                    
There was  no cost. The  change in revenue was  $815,300 per                                                                    
year starting in  FY 19. He believed an  updated fiscal note                                                                    
would follow.                                                                                                                   
Co-Chair  Seaton  MOVED  to  report  CSHB  409(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
CSHB  409(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation  and  with  one  previously  published                                                                    
fiscal impact note: FN1 (ADM).                                                                                                  
2:17:37 PM                                                                                                                    
AT EASE                                                                                                                         
2:20:25 PM                                                                                                                    

Document Name Date/Time Subjects
HB119 Sectional Analysis ver A 3.28.18.pdf HFIN 4/17/2018 9:00:00 AM
HB 119
HB 119 Supporting Documents Presentation Slides 3.27.18.pdf HFIN 4/17/2018 9:00:00 AM
HB 119
HB119 Supporting Documents - AIDEA GASB Examples 03.27.18.pdf HFIN 4/17/2018 9:00:00 AM
HB 119
HB119 Supporting Documents - AIDEA Historic Dividend Comparison Existing to Proposed 03.27.18.pdf HFIN 4/17/2018 9:00:00 AM
HB 119
SB185 Sponsor Statement 4.14.2018.pdf HFIN 4/17/2018 9:00:00 AM
SB 185
SB185 Sectional Analysis ver. D.PDF HFIN 4/17/2018 9:00:00 AM
SB 185
SB185 Explanation of Changes Ver. A to Ver. D 4.14.2018.pdf HFIN 4/17/2018 9:00:00 AM
SB 185
SB185 Support Doc - Fiscal Note Explanation Graphic 4.14.2018.pdf HFIN 4/17/2018 9:00:00 AM
SB 185
SB185 Support Doc - 10 Year Utilization Summary 4.14.2018.pdf HFIN 4/17/2018 9:00:00 AM
SB 185
HB 409 Sponsor Statement 4.16.18.pdf HFIN 4/17/2018 9:00:00 AM
HB 409
HB409 Sectional Analysis 4.16.18.pdf HFIN 4/17/2018 9:00:00 AM
HB 409
SB 92 Explanation of changes Ver I.A to Ver M.pdf HFIN 4/17/2018 9:00:00 AM
SB 92
SB 92 HCS WORKDRAFT vM.pdf HFIN 4/17/2018 9:00:00 AM
SB 92
SB 185 Matt Moser Testimony NEA.pdf HFIN 4/17/2018 9:00:00 AM
SB 185
SB 185 Supporting Document Conduent .pdf HFIN 4/17/2018 9:00:00 AM
SB 185
SB 185 Supporting Document Retention.pdf HFIN 4/17/2018 9:00:00 AM
SB 185
CSSB 105(FIN) DHSS' Alaska ER Report_2017.pdf HFIN 4/17/2018 9:00:00 AM
SB 105