02/19/2013 01:00 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB46 | |
| HB56 | |
| HB94 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 56 | TELECONFERENCED | |
| *+ | HB 94 | TELECONFERENCED | |
| + | HB 46 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
February 19, 2013
1:08 p.m.
MEMBERS PRESENT
Representative Peggy Wilson, Chair
Representative Doug Isaacson, Vice Chair
Representative Lynn Gattis
Representative Craig Johnson
Representative Bob Lynn
Representative Jonathan Kreiss-Tomkins
MEMBERS ABSENT
Representative Eric Feige
COMMITTEE CALENDAR
HOUSE BILL NO. 46
"An Act relating to regulations adopted by the Department of
Administration waiving the commercial motor vehicle driving
skills test for certain drivers with military commercial motor
vehicle experience."
- MOVED HB 46 OUT OF COMMITTEE
HOUSE BILL NO. 56
"An Act excluding motorcycles and motor-driven cycles from the
passenger vehicle rental tax; and providing for an effective
date."
- MOVED HB 56 OUT OF COMMITTEE
HOUSE BILL NO. 94
"An Act naming the northbound Chena Flood Channel Crossing
Bridge the Nellie Miller Bridge and naming the southbound Chena
Flood Channel Crossing Bridge the Con Miller Bridge."
- MOVED HB 94 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 46
SHORT TITLE: WAIVE CDL SKILL TEST FOR CERTAIN VETERANS
SPONSOR(s): REPRESENTATIVE(s) SADDLER
01/16/13 (H) PREFILE RELEASED 1/7/13
01/16/13 (H) READ THE FIRST TIME - REFERRALS
01/16/13 (H) STA, TRA
02/12/13 (H) STA AT 8:00 AM CAPITOL 106
02/12/13 (H) Moved Out of Committee
02/12/13 (H) MINUTE(STA)
02/13/13 (H) STA RPT 6DP
02/13/13 (H) DP: HUGHES, ISAACSON, KREISS-TOMKINS,
GATTIS, KELLER, LYNN
02/19/13 (H) TRA AT 1:00 PM BARNES 124
BILL: HB 56
SHORT TITLE: PASSENGER VEHICLE RENTAL TAX
SPONSOR(s): REPRESENTATIVE(s) HOLMES, T.WILSON
01/16/13 (H) PREFILE RELEASED 1/11/13
01/16/13 (H) READ THE FIRST TIME - REFERRALS
01/16/13 (H) TRA, FIN
02/19/13 (H) TRA AT 1:00 PM BARNES 124
BILL: HB 94
SHORT TITLE: CON AND NELLIE MILLER BRIDGES
SPONSOR(s): REPRESENTATIVE(s) ISAACSON
01/30/13 (H) READ THE FIRST TIME - REFERRALS
01/30/13 (H) TRA, FIN
02/19/13 (H) TRA AT 1:00 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE DAN SADDLER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as prime sponsor of HB 46.
MARK SAN SOUCI, Regional Liaison Northwest
Department of Defense State Liaison Office
Office of the Deputy Under Secretary of Defense
Washington, D.C.
POSITION STATEMENT: Testified in support of HB 46.
LIZ GLOOSCHENKO, Business Manager
Alaska Trucking Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 46.
REPRESENTATIVE LINDSEY HOLMES
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as prime sponsor of HB 56.
JAMES WALDO, Staff
Representative Lindsey Holmes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on behalf of Representative
Lindsey Holmes, joint prime sponsor of HB 56.
JOHANNA BALES, Deputy Director
Tax Division; Anchorage Office
Department of Revenue (DOR)
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
discussion of HB 56.
NANCY HULL, Owner
Alaska Motorcycle Adventure (AMV)
Palmer, Alaska
POSITION STATEMENT: Testified in support of HB 56.
BRENDA HEWITT, Staff
Representative Doug Isaacson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on behalf of Representative Doug
Isaacson, the sponsor of HB 94.
STEVE TITUS, Regional Director
Northern Region
Department of Transportation & Public Facilities (DOT&PF)
Fairbanks, Alaska
POSITION STATEMENT: Testified and answered questions on HB 94.
ACTION NARRATIVE
1:08:41 PM
CHAIR PEGGY WILSON called the House Transportation Standing
Committee meeting to order at 1:08 p.m. Representatives
Isaacson, Gattis, Lynn, Kreiss-Tomkins, and Wilson were present
at the call to order. Representative Johnson arrived as the
meeting was in progress.
HB 46-WAIVE CDL SKILL TEST FOR CERTAIN VETERANS
1:09:24 PM
CHAIR P. WILSON announced that the first order of business would
be HOUSE BILL NO. 46, "An Act relating to regulations adopted by
the Department of Administration waiving the commercial motor
vehicle driving skills test for certain drivers with military
commercial motor vehicle experience."
1:09:46 PM
REPRESENTATIVE DAN SADDLER, Alaska State Legislature, stated
that Alaskans who have honed their skills in the military
service to their country should have their skills recognized in
the civilian world. This bill would help Alaska's veterans get
jobs and Alaska's businesses to get very qualified drivers by
acknowledging military drivers already have safe driving skills.
More than 60,000 service members have held jobs involving truck
driving and many of Alaska's industries, such as construction,
oil field services, and tourism require commercial drivers'
licenses.
REPRESENTATIVE SADDLER said that in 2012, the federal government
passed a law allowing states to waive the road test skill, so
long as the military driver had recent experience and a clean
driving record. Under the federal law, drivers must still pass
their vision test, physical test, and meet other requirements.
The Federal Motor Carrier Safety Administration (FMCSA) has
encouraged states to allow these waivers. Thus far, 34 other
states have waived the skills test for military veterans and 10
are currently working on waivers. This bill would direct the
state Department of Administration (DOA) to adopt regulations in
accordance with the federal standards to allow the waivers in
Alaska. In short, HB 46 would mean jobs for veterans and
qualified drivers for Alaska's businesses. He noted letters of
support in members' packets. In response to Representative
Isaacson, he related the original bill is currently before the
committee and no changes were made when the bill came before the
House State Affairs Standing Committee.
1:12:30 PM
MARK SAN SOUCI, Regional Liaison Northwest, Department of
Defense State Liaison Office, Office of the Deputy Under
Secretary of Defense, stated that the heavy tractor and trailer
driving career in the military falls in the top ten of all
occupational specialties in the military and is the second
highest career choice in the United States Army with almost
eight percent skilled in this career field. Additionally, this
field is the second highest career choice in the U.S. Marine
Corps (USMC) with over five percent of Marines skilled in
operating these vehicles. He referred to a U.S. Department of
Labor Occupational Network Online Partnership report, which
forecasts that the truck driving field is one of the brightest
outlook fields with one of the faster than average job growth
estimates. The report estimated that between 20 to 28 percent
or 100,000 job openings would occur between 2010 and 2012. He
offered the Department of Defense's support for HB 46.
1:14:26 PM
LIZ GLOOSCHENKO, Business Manager, Alaska Trucking Association,
stated the ATA is a statewide organization representing the
interests of nearly 200 member companies.
MS. GLOOSCHENKO read from a prepared statement. She related
that one of the pressing problems in the industry today is to
find qualified drivers for the commercial vehicles that industry
uses to deliver freight. She said, "As you all know, "if you
got it, a truck brought it." The ATA spends a lot of time and
effort recruiting and retaining good drivers. The regulatory
bar has been raised in the past few years to further increase
the professionalism of drivers in the industry. She said, "When
someone says he or she is just a truck driver, they miss the
mark completely. Truck driving is a profession that requires a
great deal of in-depth knowledge of the regulations as well as
driving skills to navigate a large rig through our highway
system." Alaska has some of the best drivers in the nation, and
they become outstanding drivers through their driving training,
experience, and self-interest since these skills can save their
lives or the lives of others.
MS. GLOOSCHENKO said as an industry the ATA welcomes returning
veterans and appreciates this opportunity to support veterans,
as well as to help the industry. She related that these men and
women have had some of the best truck driving training available
and will bring to the industry recent hands-on experience in
driving big rigs. With proper certification as to a veteran's
experience, the ATA supports waiving the skills test for the
issuance of a commercial driver's license (CDL). A number of
other states have similar programs for their veterans and Alaska
should do no less. She said the ATA is proud to support
veterans and HB 46. She urged members to support the bill and
pass it from committee with "do pass" recommendations.
1:17:31 PM
CHAIR P. WILSON, after first determining no one else wished to
testify, closed public testimony on HB 46.
1:17:36 PM
REPRESENTATIVE ISAACSON moved to report HB 46 out of committee
with individual recommendations and the accompanying fiscal
note. There being no objection, HB 46 was reported from the
House Transportation Standing Committee.
The committee took an at-ease from 1:18 p.m. to 1:20 p.m.
HB 56-PASSENGER VEHICLE RENTAL TAX
1:20:43 PM
CHAIR P. WILSON announced that the next order of business would
be HOUSE BILL NO. 56, "An Act excluding motorcycles and motor-
driven cycles from the passenger vehicle rental tax; and
providing for an effective date."
1:20:54 PM
REPRESENTATIVE LINDSEY HOLMES, Alaska State Legislature, joint
prime sponsor of HB 56, stated she introduced this bill to
support some local businesses. In 2003, the legislature passed
a bill to impose a motor vehicle rental tax (MVRT) and the
committee discussion related to rental cars, but did not include
any discussion about recreational vehicles. The bill passed the
legislature. At the time, it appears the legislature did not
realize that the definition included recreational vehicles (RV)
and later amended the statutes to lower the tax rate. Several
years ago, the state's tax division realized that motorcycles
were also included in the definition and began implementing this
tax. However, similar to RVs, motorcycles are expensive to
rent, the season is limited, and motorcycles must be stored the
remaining eight to ten months of the year. The burden of the
same rental rate as motor vehicles makes it expensive and
uneconomical for people to rent motorcycles. The travelers who
rent motorcycles tend to stay in hotels, eat at restaurants, and
enhance the local economy of communities in Alaska. She
concluded that motorcycle rentals should be encouraged. This
bill would remove the tax on motorcycle rentals from the law.
She offered her belief that this tax was never contemplated to
be included in the statute to affect motorcycles.
1:23:09 PM
JAMES WALDO, Staff, Representative Lindsey Holmes, Alaska State
Legislature, on behalf of Representative Holmes, joint prime
sponsor of HB 56, said that the chief concern is the size of the
rental tax since renting a motorcycle for five to ten days could
add several hundred in taxes to the rental. He suggested that
removing the rental tax on motorcycles would help foster these
small tourism-related businesses. Historically, the language in
this bill has been before the legislature last year. He said
the language is the same language as the prior bill before the
legislature.
1:24:23 PM
REPRESENTATIVE ISAACSON referred to subparagraph (H), which
lists motorcycle. He asked whether the statute referenced also
includes snowmachines.
MR. WALDO answered that all-terrain vehicles (ATVs) are dealt
with in current law. He did not believe ATV rentals are taxed
as motor vehicles.
REPRESENTATIVE ISAACSON asked how extensive that is when all
other vehicles seem to be covered and whether the source of
revenue from ATVs should be considered in order for it to be
equitable.
MR. WALDO said he was not certain about numbers of ATVs and
offered to supply the information. This wasn't an area that was
researched.
REPRESENTATIVE ISAACSON said he wasn't suggesting covering ATVs,
but he did not wish to penalize one industry and the sponsor was
seeking equity.
1:26:13 PM
REPRESENTATIVE GATTIS said she is an avid snowmachine and ATV
user. She asked whether this is an on-the-road vehicle program.
She suggested that vehicles that use roads would be assessed the
MVRT, whereas snowmachines and ATVs are not on-the-road vehicles
and would not be subject to the tax. In response to Chair
Wilson, she responded that she owns her off-road vehicles, but
she knows some people also rent snowmachines; however, they do
not ride snowmachines on the road. She recalled she pays a
snowmachine tax and obtains a sticker for use in state parks.
CHAIR P. WILSON recalled that road use by snowmachines varies
since in certain areas in her community snowmachines use roads.
REPRESENTATIVE GATTIS remarked that snowmachines and ATVs do not
legally use the roads in her area.
REPRESENTATIVE ISAACSON reported he attended a safety conference
at DOT&PF and some communities have been authorized exceptions,
especially in rural areas.
1:28:08 PM
MR. WALDO drew attention to a handout in members' packets,
[entitled, "Chapter 43.52. TRANSPORTATION TAXES."] He then
referred to "AS 43.52.099, Definitions." The definition under
AS 43.52.099 (2) for "passenger vehicle" which read, "means a
motor vehicle as defined in AS 28.90.990 that is driven or moved
on a highway or other public right-of-way in the state, but does
not include ...." He said this lists what is not included so he
agreed the statute refers to vehicles licensed to drive on
highways and does not include ATVs or snowmachines.
1:29:21 PM
JOHANNA BALES, Deputy Director, Tax Division, Anchorage Office,
Department of Revenue (DOR), stated the purpose of the MVRT was
to collect tax on vehicles that were driven and licensed for use
on public highways. It does not encompass snowmachines or
recreational vehicles (RVs), but after some detailed review of
the law - also reviewed by the Department of Law (DOL) -
motorcycles are currently included and are taxed. In response
to Chair Wilson she agreed this bill would remove motorcycle
from the definition of a passenger vehicle.
1:30:23 PM
NANCY HULL, Owner, Alaska Motorcycle Adventure (AMV), said her
business has rented motorcycles since 1994 or for 20 years. She
offered her support for HB 56 to exclude motorcycles from the 10
percent MVRT. Rental companies and Alaska's tourism businesses
have been impacted by the unintended consequence of the tax.
She explained that her customers must choose to rent motorcycles
for fewer days or they completely pass on coming to Alaska,
which hurts Alaska's tourism. She related the motorcycle
tourism is a limited season with less than 90 days and rentals
average $200 per day per motorcycle. For example, a customer
who rents 10 days would pay $20 per day or a total tax of $200.
She has found people back away from rentals due to the onerous
tax. Typically, a couple or a father and son would rent two
motorcycles and pay $400 in taxes; however, since no tax cap
exists, the rental taxes continue to accrue at $20 per day.
MS. HULL reported that her customers ride and drive, which
enables them to go to remote parts of the state. People
regularly go to Wiseman, Circle, Deadhorse, Chicken, McCarthy,
Valdez, and Deadhorse so remote businesses in these areas
benefit from meals, hotels, and other tourism expenditures.
Additionally, these motorcycle riders pass through the urban
areas, such as Anchorage, the Matanuska-Susitna valley, and
Fairbanks, spending time and money in those areas. She asked
the committee to help her business grow by passing HB 56 this
session. In 2003, when the tax was initiated, motorcycles were
omitted from the discussion. She described the process these
four tiny motorcycle businesses have taken to fix this as being
a long and time-consuming process. She concluded by asking
members for their support and to consider sponsoring or
cosponsoring HB 56.
1:34:23 PM
CHAIR P. WILSON asked for the number of motorcycles she had when
she started her business.
MS. HULL said she started with two motorcycles and this season
she will likely rent 30 motorcycles
CHAIR P. WILSON remarked it adds up.
MS. HULL said the company is seasonal. Last year she computed
the MVRT based on the complete tax. She recalled the total tax
collected was $8.5 million, but the total MVRT for the four
motorcycle companies amounted to $15,000 to $20,000, or less
than one tenth of one percent of the total tax.
CHAIR P. WILSON, after first determining no one else wished to
testify, closed public testimony on HB 56.
1:36:01 PM
REPRESENTATIVE ISAACSON moved to report HB 56 out of committee
with individual recommendations and the accompanying fiscal
note. There being no objection, HB 56 was reported from the
House Transportation Standing Committee.
The committee took an at-ease from 1:36 p.m. to 1:39 p.m.
HB 94-CON AND NELLIE MILLER BRIDGES
1:39:32 PM
CHAIR P. WILSON announced that the final order of business would
be HOUSE BILL NO. 94, "An Act naming the northbound Chena Flood
Channel Crossing Bridge the Nellie Miller Bridge and naming the
southbound Chena Flood Channel Crossing Bridge the Con Miller
Bridge."
1:39:38 PM
REPRESENTATIVE ISAACSON, as prime sponsor of HB 94, asked to
read a prepared statement. He asked to read the sponsor
statement into the record, which read [original punctuation
provided]:
Conrad "Con" and Nellie Miller were some of the early
settlers of the City of North Pole, arriving there in
1950. Con joined the Navy after leaving home at the
age of 15 and served in China from 1927 to 1931. He
worked on the construction of the Hoover Dam after a
brief stint as a sheriff and private investigator. He
later re-enlisted in the Navy during World War II,
serving in the South Pacific.
Nellie was one of 15 children raised in Idaho Springs,
Colorado and married Con in 1938 at the age of 15.
Like many of Alaska's early pioneers, Nellie and Con
moved to Alaska in 1950 with $1.40 in their pocket and
seeking a new beginning for their small family.
Con and Nellie Miller built their first business, a
clothing store, in Fairbanks and Con travelled to
rural communities to sell his wares. When he
travelled, he often donned a red crushed velvet Santa
suit, part of the stock the couple brought north from
a previous business. As they began to build their
store in North Pole in 1952, a child of a customer
from Northway asked Con if he was building a house for
Santa Claus and the name stuck. The store became
Santa Claus House.
Con and Nellie were known as Santa and Mrs. Claus and
their family store brought worldwide attention to the
City of North Pole, Alaska. The store has grown and
evolved over time into the icon that stands today,
including the 42-foot, 900 pound Santa Claus statue
outside that entices visitors from around the globe to
celebrate Christmas year-around.
Con was the longest serving mayor of North Pole,
dedicating 19 years of leadership. In 1952 he
carried the city's incorporation papers to Juneau. He
also served as North Pole's postmaster and civil
defense director for 20 years as well as serving as
the fire chief. Nellie served on the local school
board, as the postmistress and as the town's
magistrate and marriage commissioner.
The Millers raised three children: sons, Terry and
Mike; and daughter, Merry Christmas Miller. Their two
sons served in both the Alaska State House and the
Alaska State Senate and hold the distinction of being
the only two siblings in the United States to have
presided as Senate President. Terry Miller also
served as Lt. Governor.
For their commitment to Alaska and their role in
developing the City of North Pole, it is fitting that
the Chena Flood Channel Bridges be named for these two
distinguished Alaskans. The Northbound Bridge #1364
shall be known as the Nellie Miller Bridge and the
Southbound Bridge #1866 shall be known as the Con
Miller Bridge.
1:43:58 PM
REPRESENTATIVE JOHNSON remarked that the Millers are a great
family in Alaska. He asked for clarification on whether the
sponsor would like the sign to read, "Conrad Miller, or Con
Miller" since the sign will be made.
REPRESENTATIVE ISAACSON answered Conrad Miller has always been
known as Con Miller. He acknowledged it may be a good
distinction and perhaps the sign could read, "Conrad 'Con'
Miller." He asked his staff to speak to the name for Mr.
Miller's sign.
1:44:47 PM
BRENDA HEWITT, Staff, Representative Doug Isaacson, Alaska State
Legislature, speaking on behalf of Representative Isaacson,
sponsor of HB 94, stated that the family suggested using "Con"
[Miller] as the name for the [southbound Chena Flood Channel]
Bridge. She realized "Con" is a nickname or shortened name, but
that's how the family felt most people would recognize Mr.
Conrad Miller.
REPRESENTATIVE JOHNSON said the legislature is memorializing two
great Alaskans so he just wanted to ensure that the name was
correct.
REPRESENTATIVE ISAACSON suggested he would entertain a friendly
amendment to the bill to consider changing the name to the
"Conrad 'Con' Miller Bridge."
CHAIR P. WILSON suggested the committee use the name the family
suggested since they indicated a preference for "Con Miller."
REPRESENTATIVE ISAACSON agreed.
1:46:08 PM
REPRESENTATIVE KREISS-TOMKINS asked how many bills name
structures each year in the DOT&PF's Northern Region.
1:47:01 PM
STEVE TITUS, Regional Director, Northern Region, Department of
Transportation & Public Facilities (DOT&PF), answered that the
number of structures named typically total one each session. He
recalled three structures were named in one bill last session.
1:47:34 PM
CHAIR P. WILSON noted no one was signed up to testify on the
bill. She remarked that former Representative Mike Miller said
he was very appreciative of the bill and the family will truly
appreciate this honor.
[The committee treated HB 56 as having public testimony closed.]
REPRESENTATIVE ISAACSON referred to an [e-mail] in members'
packets from commended this action from Peter Marshall, M.D.
1:48:21 PM
REPRESENTATIVE JOHNSON moved to report HB 94 out of committee
with individual recommendations and the accompanying fiscal
note. There being no objection, HB 94 was reported from the
House Transportation Standing Committee.
1:48:44 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 1:48
p.m.