Legislature(1997 - 1998)
03/24/1998 01:40 PM Senate TRA
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SENATE TRANSPORTATION COMMITTEE
March 24, 1998
1:40 p.m.
MEMBERS PRESENT
Senator Jerry Ward, Chairman
Senator Gary Wilken, Vice Chair
Senator Lyda Green
Senator Rick Halford
Senator Georgianna Lincoln
MEMBERS ABSENT
None
COMMITTEE CALENDAR
SENATE BILL NO. 298
"An Act relating to the regulation of commercial vehicles; relating
to the temporary registration of out-of-state commercial vehicles;
relating to registration fees for commercial vehicles; and
providing for an effective date."
PASSED CSSB 298(TRANS) OUT OF COMMITTEE
PREVIOUS SENATE ACTION
SB 298 - No previous Senate committee action.
WITNESS REGISTER
Lydia Jones
Senate Transportation Committee Aide
Alaska State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Read sponsor statement for SB 298
Frank Dillon
Alaska Truckers' Association
3443 Minnesota Drive
Anchorage, Alaska
POSITION STATEMENT: Testified in support of CSSB 298
Juanita Hensley, Chief
Driver Services
Division of Motor Vehicles
Department of Administration
P.O. Box 10200
Juneau, Alaska 99811-0200
POSITION STATEMENT: Testified in support of CSSB 298
Peter Blanis
No address available
POSITION STATEMENT: Supports CSSB 298
Dean McKenzie, President
Alaska West Express
660 Ocean Dock Rd.
Anchorage, Alaska
POSITION STATEMENT: Supports CSSB 298
Ted French
Teamsters Local 959
6540 Imlack Way
Anchorage, Alaska
POSITION STATEMENT: Supports CSSB 298
Mr. Bill Deaver
Anchorage, Alaska
POSITION STATEMENT: Supports CSSB 298
Mr. Aves Thompson
Division of Measurement Standards and Commerical
Vehicle Enforcement
Department of Transportation and Public Facilities
12050 Industry Way
Anchorage, Alaska 99515-3512
POSITION STATEMENT: Answered questions about CSSB 298
Mr. Dennis Poshard
Special Assistant
Department of Transportation and Public Facilities
3132 Channel Drive
Juneau, Alaska 99801-7898
POSITION STATEMENT: Supports CSSB 298
ACTION NARRATIVE
TAPE 98-6, SIDE A
SB 298 - REGULATION OF COMMERCIAL VEHICLES
CHAIRMAN WARD called the Senate Transportation Committee meeting to
order at 1:40 p.m. Senators Green, Lincoln, Halford and Ward were
present. CHAIRMAN WARD informed committee members a committee
substitute for SB 298 had been prepared.
SENATOR GREEN moved to adopt CSSB 298 as the working document of
the committee. There being no objection, the motion carried.
LYDIA JONES, Senate Transportation Committee aide, read the sponsor
statement, which is summarized as follows. SB 298 will improve
efficiency at the Division of Motor Vehicles (DMV) and the
efficiency and safety of freight movement into, out of, and within,
Alaska. SB 298 increases temporary fees from $50 to $350 for out-
of-state vehicles that wish to operate in Alaska. The measure also
eliminates the requirement for annual registration of commercial
trailers. The bill is revenue neutral, and its passage will allow
the State to participate in the International Registration Plan
(IRP). The committee substitute contains two changes to the
original bill. The first change, on page 7, decreases the
temporary registration period from 60 to 30 days. The second
change adds a new section that institutes a one-time registration
fee of $10 upon initial registration for a trailer or semi-trailer.
This section of the bill was inadvertently omitted from the
original version.
Number 079
MR. FRANK DILLON, Executive Vice President of the Alaska Trucking
Association (ATA), stated strong support for CSSB 298 and made the
following comments. This bill is the result of a lot of hard work,
effort, discussion and compromise on the part of several state
agencies and a variety of highway users. CSSB 298 is supported by
highway transportation company owners and by the Teamsters Local
959. MR. DILLON explained the key elements of the bill as follows.
First, commercial vehicle drivers will be required to show proof of
insurance. Second, the bill contains language that allows for the
adoption of the Federal Motor Vehicle Safety Programs criteria for
annual truck inspections. This criteria has been in use through
regulation for the past seven years in Alaska. It is a good system
that has dramatically reduced the number of out-of-service
violations for Alaska equipment operated on highways. The same
system is accepted in Canada and the "Lower 48" and currently is
being implemented in Mexico. The Alaska statute, approved in 1986,
has never been implemented or funded, and if it were, it would not
make the highways safer. CSSB 298 also increases the temporary
registration fee for out-of-state trucks. This fee would be
applied to trucks not licensed in Alaska that operate from a
foreign jurisdiction and deliver or pick up freight in Alaska. The
current fee is a modest $10 to $50 and no active enforcement
occurs. Truck drivers have been able to come into the State and
operate for an entire hauling season during the summer for $50.
The $350 fee is in line with fees charged in other states, and the
bill will limit the time period to 30 days which will allow enough
time to deliver and pick up freight, but not enough time to take
business away from local truckers.
MR. DILLON explained the next major change eliminates the
requirement to put annual tags on trailing equipment. This applies
to towed equipment or commercial vehicle trailers of all sizes, of
which there are approximately 20,000. The purpose of the annual
registration has been to collect the registration fee. In order to
keep SB 298 revenue neutral, the bill will take, from each weight
class of those trailers, the fees that are currently collected, and
transfer them to the corresponding weight classes of power units.
The power vehicle registration fee will increase from a minimum of
$30 per year for the lighter equipment, to a maximum of $100 for
heavy tractor equipment. Alaska will continue to have the lowest
registration costs for power units in the United States. This
approach will allow Alaska to participate in the IRP. The IRP has
been in existence for approximately 15 years throughout the United
States and Canada and is an ongoing effort to get all of the states
and provinces operating from the same prorating agreement.
Currently 46 states and six provinces and territories are involved.
The prorating agreement will replace all past reciprocity
agreements that Alaska operated under. Truck equipment is very
mobile and without reciprocity, every jurisdiction it passes
through would collect full registration costs. It is a nightmare
for the trucking industry to try to track equipment, to keep
stickers on equipment, and to keep up with different agreements
between different jurisdictions. Alaska is one of the few states
that has not taken steps to get into the IRP. DMV has been stymied
in that regard because of the required annual trailer registration
fee.
MR. DILLON concluded by saying the ATA believes CSSB 298 is a well
crafted piece of legislation that serves the interests of the State
and industry through efficiencies. The bill does nothing to
denigrate the safety of vehicles on the highway. The ATA hopes
that the additional funds, as much as $500,000, collected from out-
of-state trucks operating in Alaska in the future, can be applied
to keeping the weigh stations open, thereby helping to ensure that
incoming trucks are safe and legal.
Number 185
SENATOR WARD asked Mr. Dillon what problems are created by the
closure of the Tok weigh station.
MR. DILLON said that trucks literally wait on the Canadian side of
the border until the Tok weigh station closes for breaks or for the
evening, to come into the State. More than two dozens trucks were
observed in one evening coming in after the station closed. Most
of those truckers are avoiding the scale because their trucks are
loaded to standards not allowed in the State of Alaska, or because
they have mechanical, insurance or paperwork problems they are not
prepared to deal with. Mr. Dillon pointed out Alaska is the only
state in the Union that does not have a 24 hour highway port of
entry station. He emphasized that the secondary function of the
scales is to ensure that the weights are legal which is
particularly critical on the Alcan Highway from Tok to Fairbanks.
That stretch of road is not particularly strong due to the fact
that it is built on permafrost; therefore, strict compliance with
the weight restrictions is very important.
Number 209
SENATOR WILKEN asked Mr. Dillon if $500,000 will be the net benefit
realized if Alaska joins the IRP.
MR. DILLON replied $500,000 is the amount anticipated to be
collected from trucks entering the State.
SENATOR WILKEN questioned whether Alaska will be a net benefactor
of the IRP because of its low population.
MR. DILLON replied the ATA is anticipating that it will, and to
that effect, the State recently acquired a $30,000 federal grant to
study the IRP's cost benefit and implementation in the State.
Until the study is complete, there is no way to know. Mr. Dillon
added that the simple elimination of the trailer registration
requirement does not mean Alaska has to join the IRP, but it is
required if Alaska chooses to do so. Alaska was one of the
founding states of the IRP in the early 1980's but it eventually
dropped its membership for a variety of reasons. Two years ago
DOTPF and the industry collectively decided to reactivate the
membership. Last September, the IRP executive committee rejected
Alaska's reactivation application on the grounds that Alaska has
the trailer registration in place.
SENATOR WILKEN asked Mr. Dillon to elaborate on the note he sent to
committee members regarding the elimination of 20,000 transactions
at DMV annually which would save about $100,000.
MR. DILLON stated that after speaking with Jay Dulaney of DMV, he
estimated that DMV transactions range from approximately $5 to $8
each. The $100,000 amount is based on the lower end of the range.
He added that his estimate of revenue generated by out-of-state
trucks is also conservative.
BILL DEAVER, General Manager of Sealand, and President of the ATA,
testified via teleconference and made the following remarks in
support of CSSB 298. The ATA has determined that improved safety
programs need to be established in Alaska. DOTPF has only three
inspectors on the roads at any given time during the course of the
year. CSSB 298 will allow DOTPF to place inspectors at weigh
stations around the State. During 1997, weigh stations were only
open 38 percent of the time. The Alaska trucking industry is a
professionally run and operated business with a good safety record
and some of the most skilled drivers in all of North America. CSSB
298 will help ensure that commercial vehicles are in full
compliance with government requirements. Only 30 percent of
commercial vehicles crossing the border are Alaska registered
vehicles. The ATA would like to see the temporary registration
fees, generated at the border, used to fund the vehicle weighing
inspection programs within the State. According to last year's
numbers, the total revenue generated would be just over $1 million.
The "over-the-road" business coming from the "Lower 48" and Canada
is a growing business in the State of Alaska. The Alcan is a safe
road, and is important to the North Slope and general commerce
coming into Anchorage and Fairbanks. As traffic increases over
time, the IRP program can be more important to the State of Alaska.
Number 300
PETER BLANIS, a Teamster line driver, testified in favor of CSSB
298 via teleconference because CSSB 298 will be beneficial to
Alaska and to the trucking industry for several reasons. First,
CSSB 298 will charge a fee for out-of-state trucks entering Alaska,
the number of which is increasing dramatically. Utilizing Alaska's
infrastructure and taking work from Alaskans and Alaska businesses,
these outside operators do not pay hardly any fees, which is
inconsistent with most other states and provinces. Fees charged to
outside operators could be appropriated to DOTPF programs that are
in line with truck safety and enforcement. Full time operation of
weigh stations is in the public interest for several reasons. One,
a driver's log book must coincide with his/her scale time which is
logged into the State scale computer. If a scale is closed, the
driver is free to run a trip, or multiple trips, anyway he/she
likes. Lack of such enforcement is one of the biggest contributing
factors in fatigue-related accidents. Second, drivers often head
out on trips not knowing the weather and road conditions that lay
ahead. Very often the only indication of trouble comes from the
scale operator. Scale operators not only warn drivers of adverse
driving conditions, but they also have the ability to summon help
in an emergency. Third, fees collected from outside operators
might also be available to fund the DOTPF inspection program which
currently leaves much to be desired. He received one full-scale
truck inspection in the last four years, and only because he
requested it. In conclusion, the most important aspect of CSSB 298
is that outside operators, who reap the benefit of hauling Alaska's
resources, will be required to shoulder some of the costs related
to that benefit.
Number 346
DEAN MCKENZIE, President of Alaska West Express, agreed with
previous speakers' testimony. He stated Alaska West Express
supports all three aspects of the bill: the safety inspection, the
IRP, and the registration aspect. Not only will the State and the
industry benefit from this bill, but the motoring public will also
benefit from the creation of a safer transportation environment.
TED FRENCH, a Teamster truck driver, stated his support for CSSB
298. He believes passage of this bill will create a more level
playing field for the trucking community in Alaska. No business
minds paying its fair share of taxes, but right now, Alaska
businesses cannot compete with outside interests that are taking
advantage of the trucking industry by not having to pay an equal
share for using Alaska's highway system. In addition, outside
truckers are not always inspected for safety by Alaska's weigh
stations. He urged committee members to allocate funding for this
bill for the safety of the general public, as well as the trucking
industry. He also urged the committee to staff state maintenance
stations with personnel seven days per week, 24 hours per day in
the winter.
Number 384
AVES THOMPSON, Chief of Weights and Measures of the Division of
Measurement Standards and Commercial Vehicle Enforcement, DOTPF,
noted he was available to answer questions.
JUANITA HENSLEY, Chief of DMV, Department of Administration,
offered to answer any questions committee members have, and she
noted DMV has worked very hard with the ATA, the Teamsters Union,
DOTPF, and all other industry representatives interested, to ensure
that all participants support this bill.
SENATOR HALFORD asked how the inspection requirements will apply to
trucks in off-system locations not connected to a main road system,
such as Bethel.
MS. HENSLEY deferred to Mr. Thompson.
MR. THOMPSON replied that commercial vehicle inspectors will travel
to various locations throughout the State. DOTPF has a very small
inspection staff at this time. Those inspectors have travelled to
Bethel, Dillingham, and places in Southeast Alaska however, at the
present time, routine inspections are not possible.
Number 422
SENATOR HALFORD commented if the bill requires annual inspections,
but no one is in the area to conduct them, the bill places an
impossible requirement on the vehicle owner.
MR. THOMPSON replied federal regulations contain provisions for
self-inspection which satisfy the annual inspection requirement.
Number 430
SENATOR LINCOLN asked Ms. Hensley if she agreed that the $10 one-
time assessment fee for commercial trailers will result in the
elimination of 20,000 DMV transactions each year and a savings of
more than $100,000.
MS. HENSLEY answered that in 1997, DMV registered 18,268 commercial
trailers. DMV would be taking the commercial trailer registrations
and tacking them on to the power units that haul those vehicles.
Even though 18,000 transactions in which the owner will have to
come to DMV and stand in line will be eliminated, those
registrations will be processed on a power unit registration either
on an annual or biannual basis. Commercial vehicle owners have the
option of registering on an annual or biannual basis. DMV will
still have to register trailers coming into the State that have
never been registered before, so CSSB 298 may not actually save the
State $100,000. DMV staff, who process the "back end" stuff in a
dealer fleet unit, would be available at the front counter,
eliminating long lines at DMV.
SENATOR LINCOLN asked why the registration fee for all other
commercial vehicles on page 7 was not increased to more than
$10.00.
MS. HENSLEY said the "other commercial vehicles" include carriers
hauling snowmobiles for snowmobile retailers in the State and
similar vehicles. The $350 fee applies to out-of-state individuals
who are not registered. Those individuals can either buy a $350
permit to operate in Alaska for 30 days, or pay the current
registration fee to operate their vehicle in the State year round.
Number 464
SENATOR LINCOLN asked what kind of commercial vehicle Section 14(d)
would apply to.
MS. HENSLEY replied it is any vehicle being used for commercial
purposes.
SENATOR HALFORD asked if that would specifically include the
carriage of one's own property for a commercial business.
MS. HENSLEY said it would.
SENATOR LINCOLN asked if the $10 fee is not necessarily for out-of-
state commercial vehicles.
MR. DILLON explained that Section 14(d)1-3 applies only to out-of-
state licensed vehicles. He explained a number of commercial
vehicles coming into Alaska are not truck tractors, or trailers,
such as a small guide service delivery van entering Alaska from the
Yukon. No one felt those people should have to pay a $350 fee to
come into Alaska because they are not really in the transportation
business, the commercial vehicle is just a part of their business.
He pointed out this section only applies to vehicles not licensed
in the State.
SENATOR LINCOLN asked the number of vehicles the $10 fee would
apply to.
MR. DILLON commented that number is difficult to determine because
the weigh stations are not staffed at all times to count how many
vehicles cross the border. The purpose of this provision is to
ensure that a fee on trailers is collected. A tractor would cost
$350, the trailer would cost $10. Mr. Dillon commented, "This is
not necessarily designed because you have a threshold requirement
for stopping at the weigh stations anyway for commercial vehicles,
to the very light stuff. They may not, in fact, have to pay
anything to come into the State and they may need no mechanism for
catching those people at all."
Number 490
SENATOR LINCOLN said she raised that issue because $10 does not
seem like a great deal of money to be paying for a commercial
vehicle considering the amount of paperwork that the registration
will require, especially in light of the fact that DMV will save
$100,000 by eliminating 20,000 transactions.
MS. HENSLEY noted DMV will not be processing these registrations.
DMV plans to negotiate with DOTPF to have the scale house staff
process this work because DMV does not want to have to be open at
2:00 a.m. to issue temporary registrations when trucks cross the
border at Tok.
Number 502
SENATOR WILKEN asked why the fiscal note does not show the $100,000
savings.
MR. DILLON clarified the elimination of transactions at DMV
provides an efficiency that does not necessarily translate into
dollar savings. DMV is particularly underfunded in some areas and
cannot provide the kind of customer service that people expect.
This bill will free up DMV staff, shorten customer lines, and make
the system more efficient without costing the state any more money.
He stated he should not have implied that a direct savings would
occur. The savings will come in the form of making the system more
efficient by relieving workers of 20,000 transactions.
Number 524
SENATOR WILKEN stated he appreciates the fact that ATA wants to
help DMV, but the fiscal note should reflect what CSSB 298 does to
DMV's budget. He asked Ms. Hensley if $80,000 to $100,000 will be
saved because of the elimination of 18,000 registrations.
MS. HENSLEY explained there may not be 18,000 commercial vehicle
trailers being registered, however 39,000 commercial trucks and
2,500 buses will continue to have to be registered. The fees will
still be collected for the 18,000 trailers but they will be
transferred to the power units so there will still be work
associated with this bill. She said it will eliminate some
transactions, but at this point, she could not estimate how many.
SENATOR WILKEN stated there will be 18,000 fewer trailers to
license when this bill goes into effect, so it should cost less.
He repeated that the fiscal note does not reflect the savings
generated by this type of legislation.
MS. HENSLEY replied she did not project the savings because at this
point she does not know what those savings will be. She explained
the fiscal note shows a positive $15,500 because DMV cannot get
straight-across fees from the trailers to the power units.
SENATOR WILKEN noted Mr. Dillon suggested the savings would amount
to approximately $5 per transaction, and each transaction takes
approximately 15 minutes. He said he thinks DMV could come up with
a number and hoped DMV would submit a new fiscal note. He did not
think it is fair to the people of the State to say it will cost
more to do less.
DENNIS POSHARD, Special Assistant to DOTPF, stated that DOTPF staff
worked very closely with DMV, the Teamsters, and the ATA to develop
this piece of legislation, and it is very supportive of it.
There being no further testimony on CSSB 298, SENATOR HALFORD moved
the bill from committee with individual recommendations and its
accompanying fiscal note. There being no objection, the motion
carried.
CHAIRMAN WARD adjourned the meeting at 2:25 p.m.
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