03/29/2012 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB206 | |
| HB316 | |
| HB271 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 206 | TELECONFERENCED | |
| + | HB 316 | TELECONFERENCED | |
| + | HB 271 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
March 29, 2012
9:01 a.m.
MEMBERS PRESENT
Senator Bill Wielechowski, Chair
Senator Joe Paskvan, Vice Chair
Senator Albert Kookesh
Senator Kevin Meyer
Senator Cathy Giessel
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 206
"An Act enacting the Interstate Mining Compact and relating to
the compact; relating to the Interstate Mining Commission; and
providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 316
"An Act relating to military facility zones in the state;
relating to the development of housing in military facility
zones; relating to the financing of projects in military
facility zones; and providing for an effective date."
- HEARD & HELD
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 271(TRA) AM
"An Act relating to commercial motor vehicle requirements."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 206
SHORT TITLE: INTERSTATE MINING COMPACT & COMMISSION
SPONSOR(s): SENATOR(s) GIESSEL
02/21/12 (S) READ THE FIRST TIME - REFERRALS
02/21/12 (S) STA, FIN
03/29/12 (S) STA AT 9:00 AM BUTROVICH 205
BILL: HB 316
SHORT TITLE: MILITARY FACILITY ZONES
SPONSOR(s): REPRESENTATIVE(s) THOMPSON
02/08/12 (H) READ THE FIRST TIME - REFERRALS
02/08/12 (H) MLV, STA
02/16/12 (H) MLV AT 1:00 PM CAPITOL 120
02/16/12 (H) Moved Out of Committee
02/16/12 (H) MINUTE(MLV)
02/17/12 (H) MLV RPT 2DP 1NR 1AM
02/17/12 (H) DP: LYNN, THOMPSON
02/17/12 (H) NR: MILLER
02/17/12 (H) AM: CISSNA
02/28/12 (H) STA AT 8:00 AM CAPITOL 106
02/28/12 (H) Moved Out of Committee
02/28/12 (H) MINUTE(STA)
02/29/12 (H) STA RPT 5DP 1NR 1AM
02/29/12 (H) DP: JOHANSEN, PETERSEN, P.WILSON,
KELLER, LYNN
02/29/12 (H) NR: GRUENBERG
02/29/12 (H) AM: SEATON
03/05/12 (H) TRANSMITTED TO (S)
03/05/12 (H) VERSION: HB 316
03/06/12 (S) READ THE FIRST TIME - REFERRALS
03/06/12 (S) STA
03/29/12 (S) STA AT 9:00 AM BUTROVICH 205
BILL: HB 271
SHORT TITLE: COMMERCIAL MOTOR VEHICLE REQUIREMENTS
SPONSOR(s): REPRESENTATIVE(s) KELLER, PRUITT
01/17/12 (H) PREFILE RELEASED 1/13/12
01/17/12 (H) READ THE FIRST TIME - REFERRALS
01/17/12 (H) TRA
02/21/12 (H) TRA AT 1:00 PM CAPITOL 17
02/21/12 (H) Moved CSHB 271(TRA) Out of Committee
02/21/12 (H) MINUTE(TRA)
02/22/12 (H) TRA RPT CS(TRA) NT 5DP 1NR
02/22/12 (H) DP: PRUITT, MUNOZ, PETERSEN, GRUENBERG,
P.WILSON
02/22/12 (H) NR: FEIGE
03/02/12 (H) TRANSMITTED TO (S)
03/02/12 (H) VERSION: CSHB 271(TRA) AM
03/05/12 (S) READ THE FIRST TIME - REFERRALS
03/05/12 (S) TRA, STA
03/20/12 (S) TRA AT 1:00 PM BUTROVICH 205
03/20/12 (S) Moved CSHB 271(TRA) am Out of Committee
03/20/12 (S) MINUTE(TRA)
03/21/12 (S) TRA RPT 4DP
03/21/12 (S) DP: KOOKESH, THOMAS, MENARD, HUGGINS
03/29/12 (S) STA AT 9:00 AM BUTROVICH 205
WITNESS REGISTER
ED FOGELS, Deputy Commissioner
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Provided information related to SB 206.
GREGORY CONRAD, Executive Director
Interstate Mining Compact Commission (IMCC)
Washington, D.C.
POSITION STATEMENT: Provided information related to SB 206.
TIM MUSGROVE, representing himself
Soldotna, Alaska
POSITION STATEMENT: Testified in support of SB 206.
JIM DUFFIELD, Chairman
Alaska Miners' Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 206.
ASHELY BROWN, Assistant Attorney General
Oil, Gas & Mining Section
Department of Law
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 206.
REPRESENTATIVE STEVE THOMPSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 316.
THOMAS STUDLER, Staff
Representative Steve Thompson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information related to HB 316 on
behalf of the sponsor.
CRAIG CAMPBELL, President and CEO
Alaska Aerospace Corporation
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 316.
MCHUGH PIERRE, Deputy Commissioner
Department of Military & Veterans Affairs
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 316.
ERIN HAVELOCK, Multi-Family Underwriter Supervisor
Alaska Housing Finance Corporation
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to HB 316.
REPRESENTATIVE WES KELLER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 271.
JIM POUND, Staff
Representative Wes Keller
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Summarized HB 271 on behalf of the sponsor.
DAN BREEDEN, Director
Division of Measurement Standards & Commercial Vehicle
Enforcement
Department of Transportation
Anchorage, Alaska
POSITION STATEMENT: Provided information related to HB 271.
SCOTT HICKS, Vice President-Operations
Alaska West Express and
Vice President
Alaska Trucking Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 271.
ANMEI GOLDSMITH, Assistant Attorney General
Transportation Section
Department of Law
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to HB 271.
ACTION NARRATIVE
9:01:44 AM
CHAIR BILL WIELECHOWSKI called the Senate State Affairs Standing
Committee meeting to order at 9:01 a.m. Present at the call to
order were Senators Giessel, Kookesh, Paskvan, Meyer, and Chair
Wielechowski.
SB 206-INTERSTATE MINING COMPACT & COMMISSION
9:01:53 AM
CHAIR WIELECHOWSKI announced that the first bill to come before
the committee would be SB 206, which would incorporate the
Interstate Mining Compact in state statute and authorize Alaska
to participate fully in the Interstate Mining Commission. This
commission is a multi-state organization that represents the
natural resource interests of its member states. It was created
in 1970 with the entry by four states. Since then, 19 additional
states have joined the compact, and five additional states have
become associate members. Alaska is presently an associate
member. This is the first hearing on the bill.
SENATOR CATHY GIESSEL, sponsor of SB 206, presented an overview
of the bill. She referred to a chart in members' packets,
Interstate Compacts and Commissions in Alaska Statute. She noted
that Alaska belongs to at least 23 interstate compacts and
commissions. She explained that the bill was an opportunity to
demonstrate leadership in resource development. Becoming a full
member of the Interstate Mining Compact Commission (IMCC) would
give Alaska voting rights.
She pointed out that Alaska has a large deposit of rare earth
elements, which will become an issue on the national scene in
the near future. She noted the bill enjoys bi-partisan support.
CHAIR WIELECHOWSKI requested a sectional analysis.
SENATOR GIESSEL explained each section of the bill. She related
that lines 5-7 say that the Interstate Mining Compact contained
in this section is enacted into law. Article 1 finds the
importance of mining to the state and proposes to support
environmentally sound mining. Article 2 is the definition
section. Article 3 is state programs and it ensures that a
member state has adequate mining regulations. Article 4 is about
powers of the commission to study, make recommendations, and
gather and disseminate information on mining-relate issues.
Article 5 creates the commission. Article 6 allows the
commission to establish advisory, technical, and regional
committees. Article 7 details how the commission's finances are
to be handled. The fiscal note comes from this area. The budget
is apportioned to the state members and is based on the value of
mined products.
CHAIR WIELECHOWSKI asked about the fiscal note.
SENATOR GIESSEL said that Mr. Fogels would speak to the fiscal
note.
She continued with Article 8, which describes that states must
enact the compact to participate and must repeal the act to
withdraw. Article 9 maintains that the compact does not limit,
repeal, or supersede any state laws. Article 10 provides that
all phrases, clauses, sentences, and provisions are severable.
She related that the bill concludes with a provision for an
alternate, requirements for bylaws and amendments, and an
immediate effective date.
9:10:57 AM
ED FOGELS, Deputy Commissioner, Department of Natural Resources,
provided information related to SB 206. He pointed out that
mining activity has increased in the state. There are now seven
major operating mines in Alaska, which are strong economic
contributors. He opined that DNR is doing a good job of
permitting those mines. He spoke of the controversy and the
questioning of the permitting process. As part of a permitting
review, the state has been asked to look at how it collaborates
with the federal side of the permitting process, as well as
finding out how other states do their permitting. He said that
IMCC can help Alaska work with both of those issues.
He provided the history of the state's association with IMCC.
Alaska has been an associate member for six years. IMCC brings
together the environmental regulatory programs and the mining
programs from 24 states and is a very robust information
exchange. IMCC carries the full weight of 24 states when it goes
to Washington, D.C., to testify in Congress or to approach a
federal agency.
He gave an example of the Environmental Protection Agency (EPA)
and their pending decision to provide bonding for hard rock
mining. The issue relates to the Super Fund Law. Mining is the
first to be considered. There is a risk if EPA takes over the
responsibility for bonding for hard rock mining that it would
negatively impact the state's ability to regulate mining. He
stated that IMCC has done a great job of bringing mining states
together to meet with the EPA in an effort to work on a
solution. He said he was the governor's representative to the
IMCC.
9:15:22 AM
CHAIR WIELECHOWSKI asked what benefits Alaska would get from
full membership.
MR. FOGELS explained that after five or six years the state has
to make a decision whether to become a full member because it no
longer can be an associate member. He described the benefits of
full membership, such as being able to vote and sit on
committees. The more full members IMCC has, the more powerful
the voice in Washington, DC.
SENATOR PASKVAN asked how Alaska's membership contribution would
rate compared to other states. He understood that 50 percent of
membership dues is based on the value of the state's ores.
MR. FOGELS explained that the first half of membership dues is
pro-rated equally to all member states, and the second half is
pro-rated base on the state's mineral valuation. He suggested
asking Greg Conrad for more details.
9:18:00 AM
SENATOR PASKVAN noted a favorable letter from the Council of
Alaska Producers. He asked if industry contributes to the
membership fees, or if there is a policy against that.
MR. FOGELS reported that industry does not contribute to IMCC.
It is an organization of state governments that pay dues.
SENATOR KOOKESH said he was interested in more information about
the dues structure.
MR. FOGELS pointed out that IMCC dues would not continue to
increase; the state would pay more of the share as the mining
industry grows. The cap is structured on IMCC's annual budget.
SENATOR PASKVAN asked if Nevada was a member.
MR. FOGELS said Nevada is not a member. He related that the IMCC
began with the coal states in the East Coast in the 60's and
70's. Now, Western states are associate members. Alaska is the
first to consider full memberships. He said there was growing
interest for IMCC in non-coal states.
9:22:22 AM
SENATOR GIESSEL clarified the states' membership status using a
chart.
CHAIR WIELECHOWSKI asked if there are any negatives to Alaska's
joining the IMCC.
MR. FOGELS didn't see any downsides except for the fiscal cost.
The IMCC does not bind states to anything, but is more of an
advisory commission.
CHAIR WIELECHOWSKI asked for examples of issues IMCC has dealt
with in the past that Alaska would have wanted to weigh in on.
MR. FOGELS brought up the EPA bonding issue and also issues
related to the merger of the Office of Surfaces Mining with the
Bureau of Land Management. The proposed merger was being
conducted without state input. He also listed federal hard rock
mining issues and key federal legislation, such as the Good
Samaritan legislation, which would allow non-profits to clean up
old mine sites.
9:25:25 AM
GREGORY CONRAD, Executive Director, Interstate Mining Compact
Commission (IMCC), provided information related to SB 206. He
explained that in today's regulatory climate in Washington, DC,
it is important for states to have a say. IMCC is an important
entity when dealing with federal requirements. He listed several
issues that IMCC has testified on, such as Good Samaritan
Protections, stream protection requirements for surface coal
mining operations, hard rock financial assurance requirements,
and the impacts on the federal budget on state grant programs.
He noted in IMCC's annual report, recommendations on many issues
which are developed by the states. Without the input of the
states, none of this would be possible. The ability to speak
with one voice on common concerns gives meaning to IMCC's
purpose.
He addressed a specific matter as to why Alaska should become a
full member of IMCC. He listed the advantages of membership: a
formal vote, committee memberships, and access to communications
and programs. He continued to say that Congress and federal
agencies will recognize Alaska's interest in issues as a member
of IMCC. He said participation opens avenues. He noted that IMCC
is focused solely on mining issues.
9:30:14 AM
CHAIR WIELECHOWSKI asked about financial implications to Alaska
with the increase of mines in the state and how that might
affect IMCC dues.
MR. CONRAD explained that dues are based on the value of mineral
production based on figures provided by the U.S. Geological
Survey for non-coal, and by Energy Information Administration
figures for coal. The dues are proportioned over two years. The
dues cap is two times the equal share amount allocated among the
states. For 2014 and 2015 the maximum amount any one state would
pay would be $57,000. Currently, Alaska's dues would be about
$35,000 to $40,000. They could increase up to the cap as it is
reached. He noted that West Virginia's share was $72,000, but
the cap brought them down to $57,000. He concluded that Alaska
would not be one of the larger dues-paying states.
9:33:10 AM
CHAIR WIELECHOWSKI asked what IMCC's total budget was.
MR. CONRAD related that the information is found in IMCC's
annual report, which he offered to make available. He believed
that IMCC's projected expenses for FY 2014 and FY 2015 were
about $520,000.
CHAIR WIELECHOWSKI inquired how many staff IMCC employs.
MR. CONRAD said two.
9:33:51 AM
SENATOR PASKVAN asked why Nevada was not a member.
MR. CONRAD reported that Nevada has made a request to its
governor to join IMCC. IMCC is also working with Montana and
Arizona to join. In the past, during the first 20 years, IMCC
was not involved in hard rock issues. Currently, Western States
have expressed an interest in becoming members. IMCC's strategic
plan now includes Western States' issues.
SENATOR PASKVAN asked if there have been policy issue reasons
for states' not joining.
MR. CONRAD related that the only concern has been related to
fiscal expense, but not to policy issues. Most states realize
that membership dues are reasonable.
9:37:45 AM
TIM MUSGROVE, representing himself, Soldotna, Alaska, testified
in support of SB 206. He urged the committee to continue
responsible development of mining-related natural resources by
joining IMCC as a full member.
9:38:43 AM
JIM DUFFIELD, Chairman, Alaska Miners' Association, testified in
support of SB 206. He said he has seen the benefits of IMCC in
other states. He encouraged full membership in IMCC.
CHAIR WIELECHOWSKI asked if membership would bind the state or
have any negative ramifications.
9:40:09 AM
ASHELY BROWN, Assistant Attorney General, Oil, Gas & Mining
Section, Department of Law, answered questions related to SB
206. She replied that no new laws would have to be enacted. She
referred to Article 3 which she opined is sufficient to fulfill
the terms of the compact. Article 9 states that nothing in the
compact shall be construed to limit, repeal, or supersede any
laws of the state. She stated that the bill would not limit
sovereignty. There is an option for the state to withdraw from
the compact.
SENATOR PASKVAN asked if IMCC was an advisory group that
addresses issues of importance to the mining industry.
MR. FOGELS clarified that it is an advisory body for the states,
not for the industry, as they deal with mining issues.
CHAIR WIELECHOWSKI closed public testimony. He set SB 206 aside.
HB 316-MILITARY FACILITY ZONES
9:43:23 AM
CHAIR WIELECHOWSKI announced that the committee would hear HB
316, which allows the Department of Military and Veterans
Affairs (DMVA) to establish "military facility zones." These are
zones of economic and industrial production that help military
bases fulfill their mission. The bill passed the House with
great bipartisan support. About 13 percent to 17 percent of
Alaska's economic activity can be attributed to military bases
around the state.
REPRESENTATIVE STEVE THOMPSON, sponsor of HB 316, introduced the
bill. He said that HB 316 provides a flexible tool to
municipalities to stimulate businesses in Alaska that are in
close proximity to a military facility. Military facility zones
create opportunities for significant benefit to Alaska and the
nation. This bill is inclusive of all Alaska, urban and rural
alike. These zones promote the expansion of infrastructure to
benefit both military and civilian objectives.
He reported that there are 32 military installations in Alaska
that have more than 24,000 active duty and reserve National
Guard troops serving in Alaska, with 37,000 military family
members. The annual payroll amounts to $1.5 billion. These
facilities include the U.S. Army, the U.S. Air Force, the Navy,
Marine Corps, the Coast Guard, and their respective National
Guard and reserve components.
He continued to say that military facility zones are
successfully employed in other states, such as Virginia,
Alabama, Texas, Florida, Maryland, and Arizona. They are used as
vehicles to obtain and administer funds for business development
specifically relating to military activities that enhance the
military's mission and make military bases more efficient and
effective. Military facility zones in Alaska will clearly
demonstrate the state's continuing and substantive support for
the armed services and help defend against the negative impacts
of Alaska's regional economies and military communities should
Congress choose to implement the federal Base Realignment and
Closure Act (BRAC).
THOMAS STUDLER, staff, Representative Steve Thompson, provided
information related to HB 316 on behalf of the sponsor. He
thanked the committee for hearing the bill. He read from the
following sponsor statement:
'An act relating to military facility zones in the
state; relating to the development of housing in
military facility zones; relating to the financing of
projects in military facility zones; and providing for
an effective date.' HB 316 provides a very flexible
tool to municipalities to stimulate business in Alaska
in the close proximity of military facilities.
HB 316 gives statutory authority to the Department of
Military and Veterans' Affairs to establish 'military
facility zones' within the State of Alaska. Military
facility zones are designated areas in close proximity
to a military base (facility) where industrial or
economic development will directly enhance the base's
ability to fulfill its mission.
Military facility zones are successfully employed in
other states as vehicles to obtain and administer
funds for business development specifically relating
to military activities. Funding for such zones in
Alaska may be available from the Alaska Industrial
Development and Export Authority (AIDEA) and/or the
Alaska Housing Finance Corporation (AHFC), or from
federal New Market Tax Credits. Federal, state, or
local public or private funding sources, credit, or
guarantee programs can be made available directly to
municipalities and boroughs that are working on
specifically approved projects within a military
facility zone.
Military facility zones create opportunities for
significant benefits to Alaska and the nation. They
will enhance economic activity near military
installations and thereby facilitate economic growth
and development in the state, especially where local
governments are working in close partnership with
their military counterparts. The zones promote
expansion of infrastructure to benefit both military
and civilian objectives, such as civil defense,
homeland security and emergency response. They will
enhance the nation's military capabilities by helping
bases operate more effectively and efficiently.
Finally, military facility zones in Alaska will
clearly demonstrate the state's continuing and
substantive support for the armed forces.
9:48:18 AM
CHAIR WIELECHOWSKI opened public testimony.
CRAIG CAMPBELL, President and CEO, Alaska Aerospace Corporation,
testified in support of HB 316, which provides ways for local
communities to help military stay in Alaska. He shared his
experience with military bases outside of Alaska where there are
many military-related businesses right next to bases. This is
not so in Alaska. Other states try to BRAC-proof their bases by
creating partnerships with businesses. They make an effort to
offset military costs and entice businesses to communities. He
maintained that this effort should be made in Alaska in order to
support the military. Alaska Aerospace supports this effort due
to their involvement with missile activity. He said the bill
would make building a launch complex economically feasible to do
in Kodiak.
9:53:09 AM
MCHUGH PIERRE, Deputy Commissioner, Department of Military &
Veterans Affairs, testified in support of HB 316. He stated
support for local communities as they bring forward the military
facility zone designation.
CHAIR WIELECHOWSKI asked if the bill has an impact on Alaska
Housing Finance Corporation (AHFC}.
ERIN HAVELOCK, Multi-Family Underwriter Supervisor, Alaska
Housing Finance Corporation, answered questions related to HB
316. He stated that the statutory authority to finance loans
would not be affected; AHFC would simply be notified of the
application for the military facility zone.
SENATOR PASKVAN asked about federal new market tax credits.
MR. HAVELOCK replied that the new market tax program targets
commercial businesses, not private home financing.
SENATOR PASKVAN asked if the new market tax credits require the
creation of a military facility zone.
MR. HAVELOCK thought that was a question better directed to
Alaska Industrial Development & Export Authority (AIDEA), which
handles commercial loans.
9:56:48 AM
CHAIR WIELECHOWSKI noted wording in the bill that includes AHFC.
MR. HAVELOCK responded that AHFC would be involved if an
application for residential housing was presented through a
corporation or through partnering lenders.
CHAIR WIELECHOWSKI inquired if low interest residential loans
would be made available in a military facility zone.
MR. HAVELOCK replied that AHFC did not envision having a
priority for a military facility zone.
CHAIR WIELECHOWSKI addressed the same question to the bill
sponsor.
REPRESENTATIVE THOMPSON explained that there would be a need for
more housing if the Marine Corp Base would expand. A corporation
would make a deal with the Marine Corp and build subdivisions of
housing, enabling the corporation to receive federal tax
credits. AHFC would be involved in providing housing loans to
persons interested in buying housing.
CHAIR WIELECHOWSKI closed public testimony.
REPRESENTATIVE THOMPSON said the bill was another tool in the
tool box for communities and military base commanders to use to
enhance military expansion.
CHAIR WIELECHOWSKI noted HB 316 would be set aside.
HB 271-COMMERCIAL MOTOR VEHICLE REQUIREMENTS
9:59:55 AM
CHAIR WIELECHOWSKI announced that the next bill before the
committee would be HB 271, which changes the definition of
commercial vehicles.
REPRESENTATIVE WES KELLER, sponsor of HB 271, introduced the
bill. He related that the bill changes the definition of
commercial vehicles to adapt to the new and better vehicles of
today. It modernizes the law and reduces regulation on small
businesses and owners of commercial vehicles.
JIM POUND, staff, Representative Wes Keller, summarized HB 271.
He said that the bill would make doing business in Alaska a
little easier and less costly. Transporting goods in pickup
trucks and step vans is typically done by small business owners
in Alaska. Those vehicles are currently classified as commercial
vehicles. HB 271 will increase gross vehicle weight restrictions
from the current 10,000 pounds to 14,000 pounds. Today's light-
to-medium trucks are larger than when the original language in
the law was written in 1999.
He gave an example of where a small business owner, currently
classified as commercial, would run into problems under the
current language with additional costs such as insurance,
registration, inspections, and the cost of a medical exam for
the vehicle operator. Change in the weight allocation makes the
average one-ton pickup truck non-commercial.
He noted that the same rules apply for pilot vehicles. Many
younger Alaskans are looking to get into the trucking industry
and this bill would give them an opportunity to operate a more
efficient one-ton vehicle as a pilot vehicle.
10:02:24 AM
CHAIR WIELECHOWSKI requested an explanation of the technical
changes.
MR. POUND reported that Section 1 deals with regulations in
statutes in conjunction with federal law.
CHAIR WIELECHOWSKI asked about page 1, lines 8-10, and the
purpose for removing regulations that are necessary to avoid
loss or withholding of federal highway money.
DAN BREEDEN, Director, Division of Measurement Standards &
Commercial Vehicle Enforcement, Department of Transportation,
provided information related to HB 271. He explained that the
removal of that language is to prevent the loss of federal
highway funding and to make regulations that would withstand
court challenges.
CHAIR WIELECHOWSKI asked what was being amended.
MR. BREEDEN clarified that the language was not clear and was
challenged in court. The intent is to avoid the loss of federal
highway funding.
SENATOR PASKVAN asked if the intent is to prevent Alaska from
being potentially at risk for loss of federal highway funds.
MR. BREEDEN said it was a moot point.
CHAIR WIELECHOWSKI summarized that the current statute says that
the state can only adopt regulations regarding size, weight, and
load provisions, and adopting those regulations might cause the
state to lose federal highway funding.
MR. BREEDEN replied that some interpret it that way.
CHAIR WIELECHOWSKI restated that HB 271 would change that and
give the state more flexibility in allowing the state to adopt
regulations regarding size, weight, and load provisions that may
or may not affect federal highway funds.
MR. BREEDEN said yes.
CHAIR WIELECHOWSKI requested clarification of Section 2.
10:07:00 AM
MR. POUND explained that on page 1, line 14, the words "for
commercial purposes" were added to clarify that it was for
commercial motor vehicles. On page 2, line 7, the words "is used
in the transportation of materials found by the United States
Secretary of Transportation to be hazardous for purposes of 49
U.S.C 5101 - 5128" were deleted.
CHAIR WIELECHOWSKI asked why the change on page 1, line 14, was
necessary.
MR. POUND explained that it clarifies that the vehicles are
specifically being used for commercial purposes.
CHAIR WIELECHOWSKI asked why that was important.
MR. BREEDEN explained that there were vehicles that were not
being used in commerce that are being forced to be regulated
when they would not need to be.
CHAIR WIELECHOWSKI asked for the practical implication of that
change.
MR. BREEDEN clarified if a person is not in commerce, then their
vehicle should not be considered a commercial vehicle.
SENATOR PASKVAN asked why the word "intrastate" is used if it is
referring to commerce. He suggested it should be "intrastate"
and "interstate".
MR. BREEDEN said bill would only affect intrastate vehicles,
because the definition of interstate commerce is still 10,000
pounds.
SENATOR PASKVAN pointed out that it was meaningless to limit it
to intrastate. He reiterated that commercial purposes include
interstate commerce.
MR. BREEDEN said the Federal Motor Carriers Safety
Administration (FMCSA) has a clear definition of the difference
between "intrastate" and "interstate". This legislation would
affect intrastate vehicles only because of vehicle weight
standards.
10:09:57 AM
CHAIR WIELECHOWSKI agreed with Senator Paskvan's point. He
pointed out that Supreme Court has a very broad definition of
"interstate", which is any commercial transaction that has been
deemed by the Supreme Court to be an "interstate" transaction.
He suggested having an attorney from Legislative Legal address
the issue.
MR. POUND continued to explain changes in Section 2. On page 2,
line 7, language was deleted because it is redundant with
federal law. That same change is also made on page 3, in
Section 3.
CHAIR WIELECHOWSKI asked for the rationale behind removing the
words, "is used in the transportation of materials found by the
United States Secretary of Transportation to be hazardous for
purposes of 49 U.S.C 5101 - 5128."
MR. BREEDEN related that all hazardous material operations are
under federal law already.
CHAIR WIELECHOWSKI asked why the words were included in bill in
the first place.
MR. BREEDEN thought it was due to a lack of understanding.
CHAIR WIELECHOWSKI inquired about the addition of the word
"motor" on page 2, line 12.
MR. POUND said it was a technical change.
CHAIR WIELECHOWSKI asked about the change on page 2, line 20,
the deletion of the word "recreational."
MR. POUND explained that it was a reference to motor homes which
are not commercial vehicles.
CHAIR WIELECHOWSKI asked for the definition of recreational
vehicles.
MR. BREEDEN said that the definition of recreational vehicles
lies with the Division of Motor vehicles and they are exempt
from all things associated with commercial motor vehicles.
CHAIR WIELECHOWSKI asked for a practical implication for
removing recreational vehicles from Section 3.
MR. BREEDEN clarified that the reason is simply to exempt
recreational vehicles from the requirements of commercial
vehicles.
CHAIR WIELECHOWSKI inquired if recreational vehicle owners are
currently required to pay commercial fees.
MR. BREEDEN explained that they were considered a commercial
vehicle when used for deliveries, but three years ago the FMCSA
clarified language making recreational vehicles exempt from
commercial regulations.
10:14:19 AM
CHAIR WIELECHOWSKI asked if it would result in recreational
vehicle owners not having to buy insurance.
MR. BREEDEN said the removal of the language was further
clarification to remove recreational vehicles from any
commercial arena.
CHAIR WIELECHOWSKI asked if there was any practical change.
MR. BREEDEN said no.
MR. POUND referred to Section 3 as "the meat of the bill." It
adds words to distinguish between vehicles greater than 10,000
pounds used for interstate commerce and vehicles greater than
14,000 pounds used for intrastate commerce in order to show the
separation of the two classes of vehicles.
SENATOR MEYER said he appreciated the list of classes of
vehicles which are not commercial vehicles. He asked if Class 3
trucks would also be exempted.
MR. POUND said Class 3 trucks would be exempted up to 14,000
pounds.
SENATOR MEYER gave an example of a plumber who would need a Ford
450 truck weighing 16,000 pounds in order to do business.
MR. POUND thought it would be rated as a commercial vehicle.
SENATOR MEYER suggested that the limit be raised to 16,000
pounds for non-commercial vehicles.
MR. POUND noted that the legislation was based on considering
one-ton trucks and doolies.
REPRESENTATIVE KELLER added that he followed the recommendations
of the Alaska Trucking Association when drafting the
legislation.
10:17:53 AM
SENATOR MEYER wondered how difficult it is to obtain a DOT
number.
MR. BREEDEN replied that the process of getting a U.S. DOT
number for intrastate use is easy to do on line or in person.
The difference between an interstate and intrastate number is
$300, with the forms being the same.
CHAIR WIELECHOWSKI asked Mr. Pound if there were any other
changes in Section 3.
MR. POUND responded that redundant language was removed.
MR. BREEDEN stated support for HB 271.
10:19:34 AM
SCOTT HICKS, Vice President-Operations, Alaska West Express, and
Vice President, Alaska Trucking Association (ATA), testified in
support of HB 271. He related that a legislative priority of
ATA's was to change the definition of intrastate commercial
vehicle to reduce the regulatory burden on small businesses. He
justified the need to change motor vehicle weight requirements.
He talked about the current requirements for pilot vehicles,
which would be changed for the better by the legislation. He
urged the committee to act favorably on the bill.
10:22:32 AM
CHAIR WIELECHOWSKI noted that someone from the Department of Law
could address a previous question on the bill.
ANMEI GOLDSMITH, Assistant Attorney General, Transportation
Section, Department of Law, answered questions related to HB
271. She addressed the issue of intrastate versus interstate
commerce. She referred to a case that found that commerce that
happens within a state affects commerce that happens across
state boundaries; therefore, Congress can regulate intrastate
commerce. She explained that statutes that cover commercial
motor vehicles make a distinction between interstate commerce
and intrastate commerce. Congress says that interstate commerce
will be regulated by federal law, but intrastate commerce will
not be governed by federal law. The State of Alaska can regulate
intrastate commercial motor vehicles.
SENATOR PASKVAN asked if HB 271 would create a conflict with
federal law for vehicles between 10,000 and 14,000 pounds.
MS. GOLDSMITH said the intent of the bill is to raise the gross
vehicle weight for vehicles used only for intrastate commercial
business, so she did not think so.
SENATOR PASKVAN asked what the lower weight limit is.
10:27:51 AM
MS. GOLDSMITH said she would have to double check weight
regulations.
MR. BREEDEN responded that federal regulations allow states to
regulate vehicles under 26,000 pounds.
CHAIR WIELECHOWSKI asked if anything in the bill could result in
Alaska losing federal highway money.
MR. BREEDEN said he did not know.
CHAIR WIELECHOWSKI asked if the bill deletes statutory language
regarding commercial licenses for vehicles carrying hazardous
materials.
MR. BREEDEN said no. All hazardous material laws would apply
regardless of the size of the vehicle.
10:30:12 AM
CHAIR WIELECHOWSKI said HB 271 would be held in committee.
10:30:23 AM
There being no further business to come before the committee,
Chair Wielechowski adjourned the Senate State Affairs Standing
Committee at 10:30 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 206 Full Text.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/10/2012 9:00:00 AM |
SB 206 |
| SB 206 Sponsor Statement.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/10/2012 9:00:00 AM |
SB 206 |
| SB 206 Sectional Analysis.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/10/2012 9:00:00 AM |
SB 206 |
| SB206-DNR-MLW-03-23-12.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/10/2012 9:00:00 AM |
SB 206 |
| SB 206 IMCC Back-Up - What We Do.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/10/2012 9:00:00 AM |
SB 206 |
| SB 206 - Memo of Understanding.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/10/2012 9:00:00 AM |
SB 206 |
| SB 206 IMCC Back-Up - Background.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/10/2012 9:00:00 AM |
SB 206 |
| SB 206 Support Document-AMA Letter.PDF |
SSTA 3/29/2012 9:00:00 AM SSTA 4/10/2012 9:00:00 AM |
SB 206 |
| SB 206 IMCC Back-Up - Member States.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/10/2012 9:00:00 AM |
SB 206 |
| SB 206 IMCC Back-Up - Welcome.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/10/2012 9:00:00 AM |
SB 206 |
| 1- HB0316 ver I- Bill.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 316 |
| 2- HB 316 - Sponsor Statement.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 316 |
| QA on HB316 memo.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 316 |
| HB316-Fiscal Note-DMVA-MVA-CO-02-13-12.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 316 |
| HB316-DOR-AHFC-02-10-12.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 316 |
| HB316-DCCED-AIDEA-02-10-12.pdf |
SSTA 3/29/2012 9:00:00 AM |
HB 316 |
| HB316-DCCED-AIDEA-02-28-12.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 316 |
| 7- HB 316- Rep Saddler Testimony.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 316 |
| HB0316A.pdf |
SSTA 3/29/2012 9:00:00 AM |
HB 316 |
| HB316 Sectional Analysis.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 316 |
| CSHB 271 (TRA).pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| CSHB 271 Fiscal.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| CSHB 271(TRA) H. Floor amend 1.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| CSHB0271-1-2-022212-ADM-N.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| CSHB271 Support Renovators.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| Hb 271 Ak Truck support.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| HB 271 Fed Standard CMV.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| HB 271 NFIB Support.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| Hb 271 Norcom Operations.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| HB 271 Norcom.pdf |
SSTA 3/29/2012 9:00:00 AM |
HB 271 |
| Hb 271 St. John support.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| HB 271 Vehicle classes.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| HHB 271 Support enstar.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| HB271 AGC Letter.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| HB0271A.PDF |
SSTA 3/29/2012 9:00:00 AM |
HB 271 |
| HB 271 SPONSOR.pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |
| HB271-DOA-DMV-2-17-12 (3).pdf |
SSTA 3/29/2012 9:00:00 AM SSTA 4/11/2012 9:00:00 AM |
HB 271 |