Legislature(1997 - 1998)

04/07/1998 09:05 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 HOUSE BILL NO. 404                                                            
                                                                               
"An Act relating to the regulation of commercial                               
vehicles; relating to the temporary registration of                            
out-of-state commercial vehicles; relating to                                  
registration fees for commercial vehicles; and                                 
providing for an effective date."                                              
                                                                               
                                                                               
CS FOR HOUSE BILL NO. 404(TRA)                                                 
                                                                               
"An Act relating to the regulation of commercial                               
vehicles; relating to the temporary registration of                            
out-of-state commercial vehicles; relating to                                  
registration fees for commercial vehicles; and                                 
providing for an effective date."                                              
                                                                               
                                                                               
Co-chair Sharp reviewed the calendar for today.  He first                      
called HB 404.                                                                 
                                                                               
PETER ECKLND, staff to Representative Bill Williams was                        
invited to join the committee.  He read the sponsor                            
statement into the record.  He said the bill would promote                     
safer commercial vehicles.                                                     
                                                                               
Senator Donley asked the about the changes to the bill this                    
year as compared to last year.  Mr. Eckland said he would                      
have to check with the sponsor.  He will also ask if the                       
sponsor has any objection to adding to the bill the                            
requirement for truckers to know the insurance telephone                       
number.  Mr. Eckland said there were representatives present                   
from the Department of Transportation and Public Facilities,                   
Division of Motor Vehicles and the industry present to                         
answer any specific questions.                                                 
                                                                               
                                                                               
In response to questions from Senator Adams, Mr. Eckland                       
said he did not think there would be any impact on the                         
fiscal note.  The increase of permit fees for out-of-state                     
trucks would generate revenue for the State.  However, he                      
said that the fees were still less than what Alaska trucks                     
were charged for out-of-state and the provinces.                               
                                                                               
                                                                               
Senator Parnell noted  sections 18 and 19 and asked about                      
the changes to the annual registration fees.  Mr. Eckland                      
explained these sections for the committee.  He said the                       
increases as outlined were offset by a decrease in the one-                    
time registration of commercial trailers of $10.                               
                                                                               
FRANK DILLON, Executive Vice-President, Alaska Truckers                        
Association was invited to join the committee.  He said the                    
Alaska Truckers Association supported HB 404 because it                        
would level the playing field amongst competitors.  He has                     
worked extensively with Division of Motor Vehicles and the                     
Department of Transportation and Public Facilities.  In                        
response to an earlier question by Senator Donley he said                      
section 1 of the bill answered that.  He agreed that all                       
commercial vehicles should be inspected twice yearly                           
according to the Federal Motor Vehicle Safety Standards,                       
insuring all mechanical operations be up to standard.  The                     
Alaska State Troopers carry out random safety checks.  The                     
bill would also raise fees for out-of-state trucks and the                     
$300 - $350 cost for a temporary permit did not seem out of                    
line.  He noted that Alaska trucks were paying approximately                   
$1000/trip into the Yukon Territory.  He referred to the new                   
money the State would collect and said it would be used to                     
keep the weigh station in Tok open twenty-four hours a day.                    
This will help to insure trucks have proper insurance,                         
qualified drivers and are safe.  The bill also eliminates                      
the requirement for the annual registration of commercial                      
trailers with the Division of Motor Vehicles.  The money                       
currently collected will be added to the registration costs                    
of commercial power units in the corresponding weight                          
classes.  This would maintain a revenue neutrality as far as                   
the amount of money that was collected by the State.  A                        
built-in $10 fee for a one-time tag would basically show a                     
permanent registration of that trailer in the State of                         
Alaska.  Another important feature of this bill, as far as                     
the trucking industry and the economy of Alaska was that                       
there is a program adopted by about forty-five states and                      
soon to be adopted by all outside states, with the exception                   
of Hawaii, along with six Canadian provinces and territories                   
called the International Registration Plan.  It would allow                    
for truck equipment to move between various jurisdictions                      
whether they be Canadian or other states, and only pay based                   
on the amount of mileage used in other states, your base                       
state.  Presently it is not unusual for a tractor that                         
operated for instance from the Lynden fleet in the western                     
states to have more than one hundred different pieces of                       
paper they had to carry with them to be legal in the                           
jurisdictions it operated in.  This was very inefficient and                   
costly.  By eliminating the annual registration requirements                   
the State would become eligible to participate in this                         
International Registration Plan.  This would allow for                         
"transparency of the trailing equipment" between                               
jurisdictions because all fees would be shifted to the power                   
units.  He said the bill would do nothing to diminish the                      
number or types of inspections that are taking place.  The                     
Association felt it was a good, comprehensive piece of                         
legislation.  It has wide support and they urged passage of                    
the bill.                                                                      
                                                                               
BARBARA HUFF-TUTNESS, Director of Governmental and                             
Legislative Affairs, Teamsters Local 959 and on behalf of                      
the Teamsters supported HB 404.  They supported the adoption                   
of the Federal Motor Carrier Safety Program, which from the                    
Teamsters' perspective is a very important issue.  This                        
would be a great asset to the State of Alaska and for all                      
those who do drive or utilize the roads.  The temporary                        
increase for registration would level the playing field.                       
They also supported keeping the weigh stations open extra                      
hours.  This would insure trucks on the road are legal                         
weight and also insure public safety.  They also agree with                    
the transfer of the registration of the trailers to the                        
power units.                                                                   
                                                                               
PETER BLANAS, Teamster Local 959, testified via                                
teleconference from Anchorage.  He said because weigh                          
stations were not open twenty-four hours and drivers did not                   
have to keep up their logbooks they were able to make many                     
multiple trips, and he felt this was the greatest                              
contributing factor to fatigue related accidents.  Scale                       
operators also warn drivers of pending weather conditions,                     
but also can summons help in an emergency, or maintenance                      
crews.  Monies collected from outside operators may also be                    
available for funding State Department of Transportation                       
inspection programs.  He noted for the committee that as a                     
truck driver he had received on inspection in the last four                    
years and that was because he found the inspector and                          
requested it.  He supported passage of HB 404.                                 
                                                                               
Senator Adams said it was only necessary to call the                           
Department of Transportation and Public Facilities to                          
testify regarding amendment #1.                                                
                                                                               
Senator Torgerson MOVED amendment #1.  Senator Adams                           
OBJECTED.  Senator Torgerson said the intent of the                            
amendment was to clarify that a vehicle or motor home that                     
was not primarily used as a commercial entity would be                         
exempt.  It would also include a pick-up that did not exceed                   
six thousand pounds.  The definition section further                           
clarified "not to exceed six months".                                          
                                                                               
JUANITA HENSLEY, Division of Motor Vehicles was invited to                     
join the committee.  Senator Adams asked Ms. Hensley to                        
explain what effect this amendment would have on the agency.                   
Ms. Hensley said she read the amendment that a passenger                       
vehicle or motor home not primarily used for or maintained                     
for transportation along with a pick-up truck or van not                       
exceeding six thousand pounds would be exempt.  She did not                    
have any numbers at this time as to how many individuals                       
would be affected.  The division had this restriction in                       
statute several years ago however it was not enforceable.                      
She wanted to know how to enforce whether someone was using                    
the vehicle six months of the year or not and what portion                     
of the registration fees would they collect.  She objected                     
to going back to the way it was when it was unenforceable.                     
                                                                               
Senator Donley asked what the difference in costs were                         
regarding a small van or pick-up.  Ms. Hensley said                            
registration fees for a pick-up truck or van not exceeding                     
six thousand pounds was currently $78.  Senator Donley asked                   
what the cost was if they were commercial.  Ms. Hensley                        
indicated that for a vehicle more than five thousand pounds                    
but less than twelve thousand and one pound was $170.                          
Senator Donley said it seemed that if a commercial fee had                     
to be paid it would be deductible from the costs of running                    
the business.  Ms. Hensley concurred.                                          
                                                                               
Senator Torgerson asked if commercial vehicles were required                   
to stop at weigh scales.  Ms. Hensley deferred to the                          
Department of Transportation.                                                  
                                                                               
AVES THOMPSON, Chief, Weights and Measures, Division of                        
Measurement Standards and Commercial Vehicle Enforcement,                      
Department of Transportation and Public Facilities was                         
invited to join the committee.  He said commercial vehicles                    
required to stop at weigh scales were those of ten thousand                    
pounds or more unladen weight.  A small trailer would not be                   
required to stop.                                                              
                                                                               
Senator Torgerson said the vehicles were not being                             
inspected, rather just monies being collected.  He asked                       
what was the benefit of making these individuals come under                    
commercial regulations.  Ms. Hensley said the intent was                       
because they use the roads.  She said some of the vehicles                     
in combination with a boat may exceed the ten to twelve                        
thousand pounds weight limit.  She further noted that any                      
vehicle being used in furtherance of business must be                          
registered.                                                                    
                                                                               
Senator Parnell asked if there was more reasonable language                    
to satisfy all?  Ms. Hensley responded "not so far".                           
                                                                               
Co-chair Sharp, with reference to the amendment, asked Ms.                     
Hensley if she could come up with an estimate on the loss of                   
revenue.  Senator Torgerson said since it was not being paid                   
now there was no loss of revenue.  Maybe it would be an                        
increase in revenue if they got all individuals to pay.  Ms.                   
Hensley said she could come up with some figures based on                      
the four truck classes they had under categories 41 and 42.                    
                                                                               
Co-chair Sharp noted that amendment #1 was still pending and                   
there had been objection.  By a roll call vote of 3 yeas                       
(Pearce, Torgerson, Parnell) and 3 nays (Sharp, Donley,                        
Adams) the amendment FAILED.                                                   
                                                                               
Senator Donley MOVED CSHB 404(TRA) and WITHOUT OBJECTION it                    
was REPORTED OUT with individual recommendations and                           
previous fiscal note from the Department of Transportation                     
and Public Facilities in the amount of $512.9 and an                           
indeterminate fiscal note from the Department of                               
Administration, Division of Motor Vehicles.                                    
                                                                               
Co-chair Sharp noted SB 295 had been removed from the agenda                   
and called SB 345.                                                             
                                                                               

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