Legislature(2019 - 2020)GRUENBERG 120
04/23/2019 03:00 PM STATE AFFAIRS
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HB 110-VEHICLES/BOATS: TRANSFER ON DEATH TITLE 3:06:47 PM CO-CHAIR KREISS-TOMKINS announced that the first order of business would be HOUSE BILL NO. 110, "An Act relating to the transfer of a title to a boat on the death of the owner; relating to the transfer of a title to a vehicle, including certain manufactured homes and trailers, on the death of the owner; allowing a person to act for the surviving spouse of a decedent to enforce liability against real property transferred at death; and providing for an effective date." 3:07:16 PM CO-CHAIR KREISS-TOMKINS opened public testimony on HB 110. After ascertaining that no one wished to testify, he closed public testimony. 3:08:36 PM REID HARRIS, Staff, Representative Kreiss-Tomkins, Alaska State Legislature, on behalf of Representative Kreiss-Tomkins, introduced Amendment 1 [subsequently moved for adoption], which read as follows: Page 1, line 4, following "death;": Insert "relating to changes of address;" Page 6, following line 9: Insert a new bill section to read: "* Sec. 5. AS 28.05.071 is amended by adding a new subsection to read: (c) A person is not required to notify the appropriate department of a change in mailing address under (a) of this section if the person authorizes the appropriate department to change the person's mailing address automatically to match the current mailing address maintained by the United States Postal Service. A person shall notify the appropriate department under (a) of this section of a change in the person's residence address if the person's residence address is different from the person's mailing address." Renumber the following bill sections accordingly. Page 6, line 22: Delete "Section 6" Insert "Section 7" Page 6, line 23: Delete "sec. 7" Insert "sec. 8" MR. HARRIS said Amendment 1 would allow customers to authorize the Division of Motor Vehicles (DMV), [Department of Administration (DOA)], to automatically change their mailing addresses to match the addresses used by the United States Postal Service (USPS). It would simplify the process, since many people who use USPS for address changes do not think to update DMV. 3:09:29 PM JENNA WAMSGANZ, Deputy Director, Division of Motor Vehicles (DMV), Department of Administration (DOA), said DMV struggles with a high volume of returned mail resulting from people going to the USPS to change their address but not notifying DMV. The ability to use the USPS database would allow DMV to update addresses and reduce the volume of mail returned to DMV. CO-CHAIR KREISS-TOMKINS indicated that Amendment 1 would enhance and promote efficiency for DMV. 3:11:01 PM CO-CHAIR KREISS-TOMKINS moved to adopt Amendment 1 [text previously provided]. CO-CHAIR FIELDS objected for the purpose of discussion, then withdrew his objection. There being no further objection, Amendment 1 was adopted. 3:11:52 PM REPRESENTATIVE VANCE asked about liability for the individual receiving the property under HB 110. 3:12:20 PM REPRESENTATIVE IVY SPOHNHOLZ, Alaska State Legislature, as prime sponsor of HB 110, answered that "the liability follows the asset." For example, if debt is owed on a vehicle that is passed on to an heir through a transfer on death (TOD) deed, then it would be the responsibility of the heir to make the payments owed. REPRESENTATIVE VANCE asked for clarification regarding optionality of passing on [an asset]; that "it's not something that they require to pass on in debt." REPRESENTATIVE SPOHNHOLZ responded that if there is no debt associated with asset, then no debt would be incurred by the heir; however, if there is debt still associated with the asset, then the heir would be required to pay off the loan. She gave an example of a fishing boat. She explained that the proposed legislation would streamline the process used in transferring assets between a person and his/her beneficiaries; it moves it out of the probate process, which can take a couple of years to navigate. Further, it would not require the involvement of an attorney; the paperwork could be filled out at DMV. 3:14:32 PM CO-CHAIR FIELDS moved to report HB 110, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 110(STA) was reported from the House State Affairs Standing Committee.