Legislature(1995 - 1996)
02/21/1996 01:42 PM House TRA
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE TRANSPORTATION STANDING COMMITTEE
February 21, 1996
1:42 p.m.
MEMBERS PRESENT
Representative Gary Davis, Chairman
Representative Beverly Masek, Vice Chair
Representative Jeanette James
Representative Tom Brice
Representative Bill Williams
Representative Don Long
MEMBERS ABSENT
Representative Jerry Sanders
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 49
Proposing amendments to the Constitution of the State of Alaska
creating a highway fund.
- MOVED OUT OF COMMITTEE
* HOUSE BILL NO. 498
"An Act naming the Bette Cato Bridge in Valdez."
- MOVED OUT OF COMMITTEE
*HOUSE BILL NO. 517
"An Act relating to records and hearings of the Department of
Public Safety; relating to a temporary permit to drive a motor
vehicle; relating to regulation of motor vehicles and commercial
motor vehicles; relating to renewal of a driver's license by mail;
increasing the property damage amounts for proof of financial
responsibility and proof of motor vehicle eligibility in order to
lawfully operate a motor vehicle in the state; relating to certain
notifications in accidents involving property damage; relating to
motor vehicle registration procedures; and providing for an
effective date."
- HEARD AND HELD
(* First public hearing)
PREVIOUS ACTION
BILL: HJR 49
SHORT TITLE: DEDICATED HIGHWAY FUND
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) JAMES
JRN-DATE JRN-PG ACTION
05/16/95 2238 (H) READ THE FIRST TIME - REFERRAL(S)
05/16/95 2239 (H) STATE AFFAIRS, TRANSPORTATION, FINANCE
02/01/96 (H) STA AT 8:00 AM CAPITOL 102
02/01/96 (H) MINUTE(STA)
02/02/96 2597 (H) STA RPT CS(STA) NT 3DP 2NR
02/02/96 2597 (H) DP: PORTER, GREEN, JAMES
02/02/96 2597 (H) NR: OGAN, IVAN
02/02/96 2598 (H) FISCAL NOTE (DOT)
02/02/96 2598 (H) REFERRED TO TRANSPORTATION
02/14/96 (H) TRA AT 1:00 PM CAPITOL 17
02/21/96 (H) TRA AT 1:00 PM CAPITOL 17
BILL: HB 498
SHORT TITLE: BETTY CATO BRIDGE IN VALDEZ
SPONSOR(S): TRANSPORTATION
JRN-DATE JRN-PG ACTION
02/12/96 2723 (H) READ THE FIRST TIME - REFERRAL(S)
02/12/96 2723 (H) TRANSPORTATION, STATE AFFAIRS
02/21/96 (H) TRA AT 1:00 PM CAPITOL 17
BILL: HB 517
SHORT TITLE: MOTOR VEHICLES: REGULATION & INSURANCE
SPONSOR(S): TRANSPORTATION
JRN-DATE JRN-PG ACTION
02/14/96 2750 (H) READ THE FIRST TIME - REFERRAL(S)
02/14/96 2751 (H) TRANSPORTATION, JUDICIARY
02/21/96 (H) TRA AT 1:00 PM CAPITOL 17
WITNESS REGISTER
BOB BARTHOLOMEW, Deputy Director
Income and Excise Audit Division
Department of Revenue
P.O. Box 110420
Juneau, Alaska 99501-3566
Telephone: (907) 465-2320
POSITION STATEMENT: Testified on CSHJR 49(TRA)
SAM S. KITO III, Special Assistant
Office of the Commissioner
Department of Transportation and Public Facilities
3132 Channel Drive
Juneau, Alaska 99801-7898
Telephone: (907) 465-3904
POSITION STATEMENT: Testified on CSHJR 49(TRA)
FRANK DILLON, Executive Director
Alaska Trucking Association, Incorporated
Board Member, Center for Employment Education
3443 Minnesota Drive
Anchorage, Alaska 99501
Telephone: (907) 276-1149
POSITION STATEMENT: Testified on CSHJR 49(TRA) and HB 517
MARLA ATKINS
P.O. Box 461
Cordova, Alaska 99574
Telephone: (907) 424-7311
POSITION STATEMENT: Testified on CSHJR 49(TRA)
BARBARA HUFF TUCKNESS
Teamsters 959
4300 Boniface Parkway
Anchorage, Alaska 99504
Telephone: (907) 269-4236
POSITION STATEMENT: Testified on CSHJR 49(TRA)
RAY GILLESPIE, Lobbyist representing the City of UnAlaska
Gillespie and Associates
9478 Riverbend Court
Juneau, Alaska 99801
Telephone: (907) 463-3375
POSITION STATEMENT: Testified on CSHJR 49(TRA)
SHERI CAPLES
Valdez City Council
P.O. Box 307
Valdez, Alaska 99686
Telephone: (907) 835-4313
POSITION STATEMENT: Supported HB 498
REPRESENTATIVE GENE KUBINA
Alaska State Legislature
State Capitol, Room 406
Juneau, AK 99801
Telephone: (907) 465-4859
POSITION STATEMENT: Supported HB 498
SANDY PERRY-PROVOST, Special Assistant
Office of the Commissioner
Department of Public Safety
P.O. Box 111200
Juneau, Alaska 99811-1200
Telephone: (907) 465-4322
POSITION STATEMENT: Testified on HB 517
JAY N. DULANY, Director
Central Office
Division of Motor Vehicles
Department of Public Safety
5700 East Tudor Road
Anchorage, Alaska 99507-1225
Telephone: (907) 269-5559
POSITION STATEMENT: Testified in support of HB 517
BRAD BROWN, State Trooper
Central Office
Division of Alaska State Troopers
Department of Public Safety
5700 East Tudor Road
Anchorage, Alaska 99507-1225
Telephone: (907) 278-0312
POSITION STATEMENT: Testified in support of HB 517
JOE CRUM, Director of Training
Center for Employment Education
1049 Whitney Street
Anchorage, Alaska 99501
Telephone: (907) 279-8451
POSITION STATEMENT: Testified in support of HB 517 and provided
information
STEVE ALLWINE
Alaska Auto Dealers Association
8725 Mallard Street
Juneau, Alaska 99801
Telephone: (907) 789-1386
POSITION STATEMENT: Testified in support of HB 517
ACTION NARRATIVE
TAPE 96-6, SIDE A
Number 000
The House Transportation Standing Committee was called to order by
Chairman Gary Davis at 1:42 p.m. Members present at the call to
order were Representatives G. Davis, James, Brice, Long, and
Williams. A quorum was present. This meeting was teleconferenced
to Anchorage, Cordova and Valdez.
CHAIRMAN GARY DAVIS announced that the agenda was HJR 49, HB 498,
and HB 517.
HJR-49 DEDICATED HIGHWAY FUND
CHAIRMAN GARY DAVIS said a subcommittee met last week to discuss
the language of HJR 49. He apologized for the oversight of not
including a member of the minority in those discussions. He said
this discussion led to a work draft form of CSHJR 49(TRA), version
9-LS1178\K.
REPRESENTATIVE BILL WILLIAMS made a motion to adopt CSHJR 49(TRA)
as the working document. Hearing no objection, CSHJR(TRA) was
adopted as the working document for the House Standing Committee on
Transportation.
CHAIRMAN GARY DAVIS said the essence of the change made and
incorporated in CSHJR 49(TRA) is a change from a highway to a
transportation fund. The transportation fund creates a fund for
the revenues derived from the propulsion of motor vehicles for the
operation and maintenance of roads and highways and also sets up a
fund for revenues derived from marine fuel taxes to be used for the
construction and improvement of harbor facilities.
Number 151
REPRESENTATIVE JAMES expressed concern relating to the inclusion of
marine taxes within CSHJR 49(TRA). She said she had kept the
original HJR 49 narrow in order to get the two-thirds vote needed
to put the resolution on the ballot, and to get the votes necessary
to make it a constitutional amendment.
Number 213
REPRESENTATIVE JAMES said the fiscal note, she believed, would
prevent the passage of CSHJR 49(TRA). She said the fiscal note
identifies that marine fuel taxes go for construction and
improvement, of which only 37 percent have been utilized in the
past. She said the remaining 63 percent of the taxes had gone into
the general fund used for ordinary expenses. She said, as a
result, a huge fiscal note would be required for CSHJR 49(TRA).
Number 295
CHAIRMAN GARY DAVIS, "you yourself have addressed the fiscal note
with the three-fifths vote to spend outside of the dedication area,
so that is the only answer or area we could go to, to address that,
whether that is enough to satisfy that concern or not, I'm not
sure." He believed that the inclusion of the marine component
would improve its chances of passing because of gaining support
from the coastal communities in the state of Alaska.
Number 420
REPRESENTATIVE BRICE asked how the two funds would be segregated in
the fiscal note. He mentioned that only a minimal amount of money
should be spent on administrative costs, leaving as much as
possible for use on construction and development of transportation
needs in the state.
Number 506
BOB BARTHOLOMEW, Deputy Director, Income and Excise Audit Division,
Department of Revenue, responded to the question regarding the
fiscal note. He said currently the marine fuel taxes are deposited
into the general fund with appropriations coming out of the fund.
He said research would need to be done to determine whether the
amount spent on harbor facilities, in the capital or operating
budget, is equal to the amount of the taxes. He said information
from Office of Management and Budget (OMB) would need to be
received to make that determination and whether a fiscal note is
needed.
Number 596
CHAIRMAN GARY DAVIS commented that it might be possible that we are
spending all the marine fuel tax revenues collected.
MR. BARTHOLOMEW said that it might be possible.
Number 621
REPRESENTATIVE JAMES said according to testimony from the
Department of Transportation and Public Facilities (DOT/PF),
currently, only 37 percent of the marine fuel tax is being spent on
maintenance of harbor facilities. She said the rest of the money
is remaining in the general fund. She requested that Mr. Kito
comment on this information.
Number 676
SAM S. KITO III, Special Assistant, Office of the Commissioner,
Department of Transportation and Public Facilities, commented that
the reference to 37 percent was an average taken over five years.
The 37 percent, of the marine fuel tax, included revenue that went
to the DOT/PF for harbor construction projects. The maintenance
dollars that the state or department expends on the harbors is an
unknown amount at this time.
CHAIRMAN GARY DAVIS remarked that this might be a negligible fee
and commented that operation costs and basic maintenance costs come
from local slippage and moorage fees.
Number 715
MR. KITO said many of these harbors are managed by the
municipalities.
Number 726
REPRESENTATIVE JAMES pointed out that 63 percent of the marine fuel
tax goes into the general fund to pay for other things. She said
a vacancy of 63 percent, from the general fund, would need an
attached fiscal note. She said either the general budget would
have to be cut by that amount or the capital budget would need to
be increased by this amount. She added that the inclusion of a
legislative four-fifths vote to use any additional funds for other
purposes would be difficult.
REPRESENTATIVE JAMES said it is in this area where the difference
between a fund for highway and marine fuel taxes differ. Currently
the revenue derived from the highway fuel tax is less than the
amount expended, whereas there is money derived from the marine
fuel tax being used for other things.
Number 835
REPRESENTATIVE DON LONG mentioned the 37 percent of the marine fuel
tax and said he hadn't seen anything in the constitution that
dedicated that marine fuel tax to a marine fund.
Number 855
MR. KITO said the 37 percent of the marine fuel tax is an estimate
based on what DOT/PF has spent on capital expenditures on marine or
harbor systems, averaged out, compared to the amount collected in
taxes.
Number 871
REPRESENTATIVE LONG clarified that everything goes into the general
fund, but this 37 percent has been identified as the amount of
money expended.
Number 880
REPRESENTATIVE BRICE said approximately three times as much is
being spent on highway maintenance out of the general fund than
what is being brought in from the highway fuel tax.
Number 925
FRANK DILLON, Executive Director, Alaska Trucking Association,
Incorporated, was next to testify via teleconference from
Anchorage. He was in support of a dedicated fund as specified in
CSHJR 49(TRA). He said in 1990, his company suggested a dedicated
fund derived from highway money collected from highway users to be
put back for the maintenance of the highway.
Number 969
MR. DILLON said the language contained, on page two, line two, "or
operating costs", is of concern. He said his company would not
support CSHJR 49(TRA) if that language is included. He said this
fund should be established for maintenance only in a manner that is
clear and narrowly defined. He said the language of this
definition should indicate that it is for maintenance of the
existing transportation infrastructure with current vehicle rights-
of-way.
Number 1015
MR. DILLON said his industry does not envision that the DOT/PF's
budget should be covered by what is collected in a maintenance
fund. He said the community of Alaska highway users is small and
cannot fund DOT/PF's budget. He said the fund should collect
taxes, that are reasonable, to maintain the highways and desist
from the practice of deferred maintenance. He said this policy of
deferred maintenance means that the job is done later at a greater
expense. He said the situation now, is that the maintenance has
been deferred to the point where the DOT/PF is, in some areas,
uncertain about the longevity baseline of their highways. He said
money will need to be expended to bring the highways and roads up
to par.
Number 1093
MR. DILLON said the industry looks at the DOT/PF's budget with
trepidation. He said the average tractor-trailer currently pays a
little bit in excess of $7,000 in state, local and federal taxes
and fees, to operate in the state of Alaska. The combined
contribution, by truck users within the state and truck users
outside the state, is approximately $90 million per year to the
treasury of the state of Alaska. He said this figure was derived
from the fact that the industry gets back approximately seven to
one on highway truck fund dollars, and approximately 40 percent of
the federal highway trust fund is money that comes directly out of
the trucking industry's pocket. This money is paid by truck users
within and outside of the state. He said his industry makes a
significant contribution for highway maintenance and new
construction. He hoped that the reauthorization of the highway
bill in 1997 will free up money for general highway maintenance
purposes so that more maintenance can occur then has in the past.
MR. DILLON said by establishing a dedicated fund, with a clear
understanding that this fund is going to be used to improve the
situation for Alaska highway users, is a marketable device in
getting people to accept a higher highway fuel tax. The polling
done by his industry indicates that without some sort of dedication
to funding, people don't trust that paying a higher fuel tax will
result in better roads. He cautioned that if a higher fuel tax
merely results in higher spending at DOT/PF, the state gains
nothing and the public feels they are paying an even greater
subsidy to the general fund and other uses than they do now.
Number 1205
CHAIRMAN GARY DAVIS said, from committee discussions, there is
agreement concerning the language, "or operating costs". He said
the definition suggested by Mr. Dillon would put everyone
agreement. He said, in discussions by the subcommittee relating to
operating costs, the proposals included maintenance of the roads
and facilities. He said the discussion of facility maintenance
included the fencing around the DOT maintenance facility, the
buildings, the occasional need of new fuel pumps, painting of the
buildings, as well as other things. He said you could get as
detailed as the operating expenses, operators, superintendents and
supervisors. He said these are the things the committee is
addressing when maintenance and operating cost is included and are
found in statutory definitions. He asked if Mr. Dillon had the
same understanding in his definition of maintenance.
Number 1289
MR. DILLON said his perception of maintenance included more than
simply maintaining the highway features such as ditches and
drainage, but he wanted to see the language confined as narrowly as
possible to the actual maintenance of the roadway itself. He
mentioned the confusion surrounding the marine highway system and
exactly what things would be eligible, in terms of maintenance
expenses. He mentioned that the Alaska Marine Highway System is
defined as a highway. He said, even with a tax of 50 cents a
gallon, the fund would probably not have enough money to take care
of the DOT/PF's maintenance desires. He said the DOT/PF has been
inadequately funded for some period of time as seen in their budget
over the past ten years. The DOT/PF has been asked to do more, in
terms of added lane miles and meeting federal requirements, without
receiving adequate funding. He said the state is behind, in terms
of bridge maintenance and pavement maintenance, to the point that
it will cripple the state's economy. He said without an investment
in the infrastructure, a steady and ongoing quality maintenance
program, economic development won't occur because people will not
locate in such an area.
Number 1385
CHAIRMAN GARY DAVIS said the committee would consider all of his
concerns and would address them in the legislation.
Number 1413
MARLA ATKINS testified via teleconference from Cordova. She asked
for clarification of whether the state cross- uses funds for
maintenance of roads, harbors and new construction or whether they
are separated individually by mode.
Number 1441
CHAIRMAN GARY DAVIS said the tax revenues are all put into the
general fund and, as needed and approved by the legislature, they
are distributed to different accounts.
Number 1446
MS. ATKINS referred to page one, Section 7, discussing dedicated
funds, she read "the proceeds of any state tax or license shall not
be dedicated to any special purpose. This provision shall not
prohibit the continuation of any dedication existing prior to
1956", and asked if this meant that there were dedicated taxes from
gas taxes.
Number 1474
CHAIRMAN GARY DAVIS said there are dedicated funds, not
specifically fuel taxes, but that Section 7 relates to any
dedicated funds in the state and mentioned the Fisherman Fund as an
example.
Number 1499
MS. ATKINS referred to Section 18, on page one, regarding the
transportation fund and asked if the taxes from the various modes
would be placed into one account or whether it would be segregated
into specific accounts relating to the specific taxes.
Number 1524
CHAIRMAN GARY DAVIS said the fund is broken down by subparagraph
one and two, which separated the highway funds from the marine
funds.
Number 1539
MS. ATKINS asked how this was going to work if there was not
currently enough money for the highways.
CHAIRMAN GARY DAVIS said hopefully funds would be established for
highway maintenance. He said, currently, only $24 million is being
generated and $75 million is being spent. He said CSHJR 49(TRA) is
only a first step.
MS. ATKINS clarified that currently the funds can be crossed over,
but under CSHJR 49(TRA) this couldn't happen.
Number 1569
CHAIRMAN GARY DAVIS said money could be utilized for other purposes
with a three-fifths vote of the legislature.
Number 1580
MS. ATKINS said she supports the concept of the dedicated gas fuel
tax. She felt the gas tax would need to be raised in order to
maintain the highways. She said the highway infrastructure is
badly in need of work throughout the state. She said, if we are
going to develop tourism and economic development in Alaska, we
need to provide an infrastructure. She said the state gets a
higher return on the gas tax than states back in the East Coast
receive.
MS. ATKINS said she supports a gas tax and would want a dedication
of the fuel taxes to improve the road system, bring maintenance up
to standard and for new roads. She mentioned that Alaska has fewer
line miles than any state in the union which is difficult in terms
of tourism.
MS. ATKINS expressed concern over administrative costs versus
maintenance costs. She referred to the former Lieutenant Governor
Coghill (indiscernible) "understood that they were going to revamp
everything down there if they could and try to leave more people in
the field and less people in the Administration, instead, it turned
out we're back to cutting in the field." She referred to Cordova
and mentioned the states cutback of eleven to six men for
maintenance. She said they cannot keep up with the maintenance in
Cordova.
MS. ATKINS concluded that she wanted to see a raised gas tax that
is dedicated to a specific fund in order to get the public to vote
for it.
Number 1704
BARBARA HUFF TUCKNESS, Teamsters Local 959, testified via
teleconference from Anchorage. She said her organization represent
truckers and various people who use the highway infrastructure.
She said truckers deal with the infrastructure when they are going
up mountain passes with double loaders and de-booting them in order
to take one trailer at a time through some of those areas. She
said this is less of a problem then it has been in the past. She
said Teamsters Local 959 supports CSHJR 49(TRA). She said a focus
needs to be placed on the maintenance of the highways.
Number 1782
REPRESENTATIVE LONG asked how the motor fuel and water taxes are
separated, especially in areas where there is only one pump
station.
Number 1803
MR. BARTHOLOMEW said, currently, the identification is made by the
qualified fuel dealer or wholesaler who is paying the taxes
upstream from a central spot. When the fuel is sold a
determination is made regarding how the fuel will be used. He said
there is some inevitable crossover, but the Department of Revenue
(DOR) records the type of fuel tax according to how it is placed in
the tax returns.
Number 1850
CHAIRMAN GARY DAVIS clarified that it is up to the wholesale dealer
to record it and hopefully they are doing this to the best of their
ability.
Number 1862
MR. BARTHOLOMEW said there would need to be some sort of education
process put on by the DOT/PF and the DOR.
Number 1872
REPRESENTATIVE BRICE questioned how the different types of tax,
associated with different fuel use, was going to be differentiated,
especially in rural Alaska. He also questioned the staff turnover
and whether or not that would impact this process.
Number 1958
MR. BARTHOLOMEW said the DOR would set up some guidelines when the
wholesalers are dispatching it to the rural retailers, so they can
try to come up with an average, periodically reviewed and altered.
Number 1976
REPRESENTATIVE BRICE said this system should not be too precise.
MR. BARTHOLOMEW said the concern would be one of creating more
paperwork. He said the DOR and the industry could develop some
guidelines to allow the industry to do some fuel tax
determinations.
REPRESENTATIVE BRICE said fuel used for marine purposes "probably
runs 35, 40, up to 50 percent of gas sales."
REPRESENTATIVE LONG said it would also depend on the time of the
year.
REPRESENTATIVE JAMES clarified that unleaded gas could be put in
boat motors.
Number 2035
REPRESENTATIVE LONG asked if these taxes included snow machines and
all terrain vehicles.
MR. BARTHOLOMEW said there is a separate tax called the off-highway
use tax. He said if a vehicle was used off-highway there is a 2
cent tax. He explained that the 8 cent per gallon tax is paid, but
an exemption can be filed to receive a 6 cent per gallon rebate.
He said the rebate allows the DOR to track how much off highway use
there is in the state.
Number 2082
MR. DILLON interjected that there is some strict accounting by the
federal government for fuel tax purposes in order to prevent people
from paying the tax. He mentioned that because marine fuel tax was
a lesser amount than the highway fuel tax, he wouldn't be surprised
if trucks in Southeast were running around using boat fuel.
Number 2125
RAY GILLESPIE, Lobbyist representing the City of UnAlaska,
Gillespie and Associates, was next to testify. He said the city of
UnAlaska supports CSHJR 49(TRA) with the inclusion of the marine
fuel as they believe it is a good first step to addressing some of
the funding inadequacies for ports and harbors. He mentioned the
inclusion of marine fuel tax in the CSHJR 49(TRA) will have a
broader appeal statewide.
Number 2154
REPRESENTATIVE JAMES asked what the total amount of revenues
collected from marine fuels was.
MR. KITO said this information was passed out and available in the
committee packet.
REPRESENTATIVE JAMES said a fiscal note, prepared for the highway
use fund, changing $21 million from general fund to the highway
fund, should incorporate the total amount being received from
marine fuels from the general fund to the transportation fund.
Number 2200
CHAIRMAN GARY DAVIS said he would like to pass CSHJR 49(TRA) with
the understanding that an updated fiscal note is requested. He
then asked Mr. Kito if the definition of maintenance and operating
cost was clearly understood in CSHJR 49(TRA).
Number 2222
MR. KITO felt it was clearly understood, but added the definition
of items, funded by this dedicated fund, could be clarified under
statute.
Number 2234
REPRESENTATIVE BRICE said, as he understood Mr. Dillon's concern,
that a statute could be developed allowing CSHJR 49(TRA) more
expenditures to be used for the administrative costs of DOT/PF
versus direct maintenance.
Number 2258
MR. KITO said the language, as worded in CSHJR 49(TRA), would have
to include some direct relationship to maintenance of the highway
system.
Number 2271
REPRESENTATIVE BRICE said by definition, Mr. Kito's and the
commissioners salary can be attributable to maintenance costs. He
suggested tightening the language of CSHJR 49(TRA).
Number 2298
CHAIRMAN GARY DAVIS asked if the administration could allocate a
portion of their time under the language of CSHJR 49(TRA).
Number 2309
MR. KITO said the only place the DOT/PF has any type of cost
allocation is in the federal highway funding. He said DOT/PF tries
to build a federal highway department for whatever costs the
department can, so within the DOT/PF a figure is made and
incorporated into that budget. In regards to maintenance, the
realistic approach would not include DOT/PF administrate costs
within that budget. He said the accounting procedures involved
would be tremendous.
Number 2338
REPRESENTATIVE JAMES said, in accounting principles, that
maintenance would include any appropriate administrative or other
costs that directly related to the maintenance. She expressed
concern over the openness of such language.
TAPE 96-6, SIDE B
Number 000
REPRESENTATIVE JAMES said taking operating costs out of CSHJR
49(TRA), makes it perfectly clear and that the legislature is not
intending to allow administrative costs relating to roads and
highways out of this fund. She added that statutes could be added
to define what the maintenance definition covers.
Number 029
REPRESENTATIVE JAMES made a motion to delete, page two, line two,
"or operating costs". Hearing no objections this deletion was made
to CSHJR 49(TRA).
Number 046
REPRESENTATIVE JAMES expressed concern about combining the marine
fuel tax with the highway fuel tax. She said this inclusion might
gain support in some areas, but lose support in others.
Number 061
REPRESENTATIVE WILLIAMS made a motion to move CSHJR 49(TRA) amended
from committee with individual recommendations and the attached to-
be-amended fiscal note. Hearing no objections, CSHJR 49(TRA) was
moved from the House Standing Committee on Transportation.
HB 498-BETTY CATO BRIDGE IN VALDEZ
Number 084
CHAIRMAN GARY DAVIS announced that the committee would next address
HB 498. He said in discussion with Representative Kubina, he
agreed that he would submit HB 498 as a transportation bill.
Number 137
SHERI CAPLES, Valdez City Council, testified via teleconference
from Valdez. She said Ms. Cato was instrumental in the
construction of the bridge over Mineral Creek. It was through Ms.
Cato's support of a grant proposal awarded by the state of Alaska
that the bridge was built. In August of 1995, the Valdez City
Council took action to dedicate the bridge to Ms. Bette Cato, a
plaque was made and a dedication ceremony will be held in June of
1996.
Number 158
REPRESENTATIVE GENE KUBINA said Ms. Cato's part in the development
of this bridge opened up a whole new section of the community of
Valdez. He added that Ms. Cato knew and was excited about
dedication and the plaque. He thanked the transportation committee
for officially submitting HB 498.
CHAIRMAN GARY DAVIS said any minutes or any resolution from the
city of Valdez would be the only information needed to settle the
matter.
REPRESENTATIVE KUBINA said he would get this information.
Number 240
REPRESENTATIVE BRICE made a motion to move HB 498 with accompanying
fiscal note and individual recommendations. Hearing no objections
HB 498 was moved from the House Standing Committee on
Transportation.
REPRESENTATIVE JAMES said, as it was Chairman Gary Davis' bill, she
would entertain a request to waive HB 498 from the House Standing
State Affairs Committee.
HB 517-MOTOR VEHICLES: REGULATION & INSURANCE
Number 268
CHAIRMAN GARY DAVIS announced that HB 517 was next on the agenda.
He said he did not intend to move HB 517 today and drew the
committee's attention to amendments that have been submitted for
committee review.
Number 312
SANDY PARR-PROVOST, Special Assistant, Office of the Commissioner,
Department of Public Safety, said that Jay Dulany would provide
information on HB 517.
Number 329
JAY N. DULANY, Director, Central Office, Division of Motor
Vehicles, Department of Public Safety, testified via teleconference
from Anchorage. He said he would provide a brief overview on what
HB 517 would do. He said the most important aspect of HB 517 is
the commercial motor vehicle provisions. (Indiscernible due to
coughing).."approximately $22 million in highway construction funds
and to a lesser amount for commercial vehicle enforcement." He
said the state needs to disqualify commercial drivers for
violations of service orders and to bring other provisions of the
states commercial vehicle laws into compliance with federal
requirements. He said Sergeant Bob Brown would address the
enforcement issues and mentioned that there were a number of
sections that deal with these provisions.
Number 380
MR. DELANY said the other sections further the efficiency measures
within the Division of Motor Vehicles (DMV). HB 517 allows the DMV
to officially use electronic records in essentially the same manner
as paper records. HB 517 authorizes telephone hearings in lieu of
in-person hearings for administrative hearings to save
transportation costs. HB 517 increases the motor vehicle dealer
temporary permit from 30 to 60 days giving adequate time to the
dealers and their customers for title processing especially in
circumstances when it is an out-of-state title or lien.
Number 408
MR. DELANY said HB 517 also removes some restrictions for renewing
a driver's license by mail and increases the property damage
threshold to $1500 for financial responsibility and for mandatory
insurance reporting purposes. He said, finally, that HB 517
repeals the legislative section of statute that set up the original
staggered registration system back in 1978.
Number 438
CHAIRMAN GARY DAVIS remarked that federal funds are in jeopardy
unless the state of Alaska comes into compliance with regulations.
Number 450
MR. DELANY said if those commercial motor vehicle provisions are
not in place by October of 1996, then the state does tend to lose
substantial highway construction funds and potentially the Motor
Carrier Safety Action fund as well, which is up to $20 million.
Number 469
REPRESENTATIVE JAMES referred to a letter in the committee packet
from a Donald B. Harris, and asked if a provision mentioned was
going to be addressed.
CHAIRMAN GARY DAVIS said yes, it was, and added that one of the
committee members had expressed a concern for the change from 300
miles to 150 miles.
REPRESENTATIVE JAMES expressed concern over this provision as well
and suggested that a waiver be requested. She said that 300 miles
is appropriate distance within Alaska.
Number 505
CHAIRMAN GARY DAVIS began to clarify the provision being discussed
to Mr. Delany when he received a note saying that Trooper Brown
would address this provision.
Number 566
MR. DELANY said in the original commercial drivers license
legislation located in the Alaskan statutes, set the mileage factor
at 150 miles. He said he didn't feel that this is an issue in
regards to safety inspections as this is the only issue covered by
the 300 mile exemption.
Representative Masek joined the committee meeting at 2:43 p.m.
REPRESENTATIVE JAMES said her concern was in the drivers license,
but added that it is another issue which she would address
separately.
Number 593
CHAIRMAN GARY DAVIS referred to the sectional analysis and was told
that Sections 1,2,3,5,9-15,6,8,22,23 are all housekeeping measures.
Number 639
BRAD BROWN, Central Office, Division of Alaska State Troopers,
Department of Public Safety, testified via teleconference from
Anchorage. He referred to a question regarding the variance of 150
miles versus 300 miles. He said the state attempted to obtain a
variance, but was turned down. He added the state applies for
federal money under the guidance of the federal code of
regulations, Title 49, Part 350. Part 350 stipulates that the
state of Alaska needs to be in compliance with the federal motor
carrier standards. He said the state is out of compliance
primarily with the verbiage of 300 miles versus 150 miles. He
said, to this date, the enforcement unit has not encountered a
problem per se of 150 miles versus 300 miles. He said the language
must be changed in order for the state to continue receiving
federal funding.
Number 695
MR. BROWN referred to a letter from the Alaska Division Program
Specialist of the Office of Motor Carriers, this letter indicated
that the state is subject to losing at least 50 percent of the
states grant for the commercial vehicle enforcement unit as a
result of non-compliance with Part 350. He said this loss is
subject to immediate implementation because the state has been out
of compliance ever since the law was initially past, years ago.
Number 719
REPRESENTATIVE JAMES said she had no contention with the safety
inspections and in fact encouraged them. She expressed her concern
over the commercial licenses and because she was told that this was
already in affect, she had no concern with this issue.
Number 753
JOE CRUM, Director of Training, Center for Employment Education
(CEE), testified via teleconference from Anchorage. He said his
company is the only authorized and licensed commercial driving
school in the state of Alaska. He said a week ago, Mark Johnson,
the president of CEE, testified before the House State Affairs
Committee. At that time Mr. Crum was told CEE should seek a
different bill in which to address their concerns and offer
recommendations and Mr. Crum stated that this was his purpose today.
MR. CRUM asked for HB 517 to be amended, or a section be added,
placing stricter penalties on would-be personal truck driver
trainers who fail to meet the standards set forth by the state to
operate this type of training.
Number 800
MR. CRUM said CEE has invested nearly $500,000 to develop a program
that meets the minimal proposed national standards. He said CEE is
licensed and bonded with instructors who have received formal
training, extensive background checks, have been finger printed and
tested and eventually licensed by DMV. The facility and equipment
has been inspected by both DMV and post secondary education. CEE
has expended effort to follow the standards set forth by state and
federal laws to comply with established guidelines to open CEE.
The CEE has discovered a number of organizations which have not
complied with those standards and are being allowed to operate
within the state of Alaska.
Number 845
MR. CRUM said complaints regarding those organizations were
submitted to DMV and post secondary education. The DMV issued
cease and desist orders to all known violators, but these violators
are still in business today. He said an on going investigation is
being conducted by the Alaska State Troopers, but he was unaware of
the investigations status. He said the organizations do not have
instructional licenses for the company or the instructors and added
that some instructors do not have commercial drivers licenses. He
said the students are not made to follow any guidelines for safety
and these organizations do not even have minimum instructional
course permits which allows the students to receive driver training
on the streets.
MR. CRUM read a letter reply from a current violator, this letter
was directed to the Driver Improvement Officer, and says, "just
what I need a nosey neighbor and another bureaucrat sticking his
nose into my business. The straight facts are that I rented trucks
for people to take drivers test in, that is a necessity. I show
each one enough about the truck to be safe and familiar in." Mr.
Crum said the organizations spend days and weeks showing students
how to be familiar with the vehicles. He continued reading from
the letter, "while warning them that most fail on the walk around."
He said CEE has a 100 percent passing on this part, with no one
failing on the walk around. The letter goes on to say, "we also
drive the truck to the test point as they are not legally able to.
If you interpret this as training, you are mistaken. Please don't
clutter up my time or my mail with any more unsolicited packets to
explain state law to me. Truly you can find better use of your
time, as for me I will continue on trying to eke out a living and
help my fellow man as the occasion arises." He said of all the
replies received from the state cease and desist letters, this is
one of the more tame examples.
Number 956
MR. CRUM said one Anchorage company trained and provided equipment
for commercial driver license tests to an astonishing 700 people
within the last two years. A Fairbanks operator is guilty of over
400 similar violations and yet still refuses to comply with the set
standards. Others, when they are told of the requirements needed
to operate legally, decline to do so. He referred to
(indiscernible due to coughing) federal highway administration's
study of truck driver training advocacy. This study has been going
on for about two years by federal, state and private companies to
assist with decreasing truck driver accident rates.
Number 999
MR. CRUM, referring to the study, said only 8.1 percent of motor
carriers hiring entry level drivers provide adequate training for
those drivers. Of the students trained by proprietary and public
schools, like CEE, only 25.5 percent are adequately trained on a
national survey. Mr. Crum added that 97.8 percent of students
taught at CEE passed the DMV commercial drivers license test the
first time. Students trained by the illegal competitors usually
needed to take the test three or four times on average. He
concluded that stricter penalties need to be imposed for those who
fail to obey the law. He said there is not a substantial penalty
or otherwise these organizations would stop operating outside the
law. He suggested a minimum $5,000 fine per violation, in lieu of
the $100 fine currently in place, to raise the standards for heavy
haulers and penalize those who operate outside the law.
Number 1066
MR. CRUM said he supported HB 517 with the addition of this
proposed amendment.
CHAIRMAN GARY DAVIS said HB 517 would be held in committee and
asked him to send information centered around this request.
Number 1104
MR. DELANY said the situation described by Mr. Crum is absolutely
true. He said an attempt was made, when it was discovered that
there were schools operating outside of the statutes, to make them
stop. He said this situation was turned over to the State Troopers
to obtain evidence. He said, that even if those schools are found
to be in violation and were convicted of the offense, it is a
misdemeanor and doesn't affect them economically and they would
probably continue to operate.
REPRESENTATIVE JAMES asked what standards are listed for
instruction to obtain a commercial drivers license in the Alaska
statutes.
Number 1181
MR. DELANY said there were some commercial driver school statutes
and also some regulations that were promulgated as a result of
those statutes. He said he does not have any objection to the
proposed provision incorporated into HB 517.
Number 1219
MR. DILLON said he is also a member of the board for CEE since its
conception. He said it has been difficult to set up their business
when there is competition from people who do not comply with the
rules and regulations. He said if you are not going to comply with
the rules, there should be some sanctions that make sense. He
concluded that he would encourage support of this legislation.
Number 1265
MR. DILLON said HB 517 includes things that his organization has
been advocating for over a number of years to bring the state into
compliance with the federal regulations and gives the state one set
of regulations to operate from. He said the greatest difficulties
occur, in the operational sense and in terms of safety regulations,
when there are conflicting regulations and statutes. The federal
government has reminded the state of Alaska continually that we are
out of compliance and facing sanctions. He said Alaska could be
the state that the federal government makes an example to the rest
of the country. He encouraged the passage of HB 517.
Number 1323
STEVE ALLWINE, Alaska Auto Dealers Association, was next to
testify. He said he was in support of HB 517, especially page two,
Section 3, line 20 through 22, dealing with temporary permit of
vehicles. He said this section has created problems with
automobile dealers, customers and DMV. He said it has the
perception of the association that the DMV has been severely
understaffed and underfunded for the last number of years, and
although this segment of HB 517 does not provide for additional
staffing, it is believed that this segment will assist the DMV
staff, automobile dealers, and general public to do the work in a
timely manner. He encouraged the committee to retain Section 3.
CHAIRMAN GARY DAVIS clarified that Section 3 relates to any vehicle
that is sold.
ADJOURNMENT
As there was no further business to come before the House
Transportation Standing Committee, Chairman Gary Davis adjourned
the meeting at 3:00 p.m.
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