Legislature(2009 - 2010)BUTROVICH 205
04/08/2010 01:00 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB152 | |
| HB366 | |
| HJR47 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 152 | TELECONFERENCED | |
| + | HB 366 | TELECONFERENCED | |
| + | HJR 47 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
April 8, 2010
1:01 p.m.
MEMBERS PRESENT
Senator Albert Kookesh, Chair
Senator Linda Menard, Vice Chair
Senator Bettye Davis
Senator Kevin Meyer
Senator Joe Paskvan
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 152
"An Act relating to municipal transportation systems and to
regional transit authorities."
- MOVED CSSB 152(TRA) OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 366(JUD)
"An Act relating to indemnification agreements that relate to
motor carrier transportation contracts."
- MOVED CSHB 366(JUD) OUT OF COMMITTEE
HOUSE JOINT RESOLUTION NO. 47
Urging the United States Coast Guard to amend its regulations
relating to small vessels transporting fuel and supplies to
remote communities and businesses in the state.
-MOVED HJR 47 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 152
SHORT TITLE: TRANSPORTATION; TRANSIT AUTHORITIES
SPONSOR(s): SENATOR(s) HUGGINS
03/18/09 (S) READ THE FIRST TIME - REFERRALS
03/18/09 (S) TRA, FIN
03/18/10 (S) TRA AT 1:00 PM BUTROVICH 205
03/18/10 (S) Heard & Held
03/18/10 (S) MINUTE(TRA)
04/08/10 (S) TRA AT 1:00 PM BUTROVICH 205
BILL: HB 366
SHORT TITLE: MOTOR CARRIER INDEMNIFICATION AGREEMENTS
SPONSOR(s): REPRESENTATIVE(s) JOHNSON
02/23/10 (H) READ THE FIRST TIME - REFERRALS
02/23/10 (H) TRA, JUD
03/11/10 (H) TRA AT 1:00 PM CAPITOL 17
03/11/10 (H) Moved CSHB 366(TRA) Out of Committee
03/11/10 (H) MINUTE(TRA)
03/12/10 (H) TRA RPT CS(TRA) 5DP 1NR
03/12/10 (H) DP: JOHNSON, T.WILSON, GRUENBERG,
PETERSEN, P.WILSON
03/12/10 (H) NR: JOHANSEN
03/19/10 (H) JUD AT 1:00 PM CAPITOL 120
03/19/10 (H) Moved CSHB 366(JUD) Out of Committee
03/19/10 (H) MINUTE (JUD)
03/22/10 (H) JUD RPT CS(JUD) 7DP
03/22/10 (H) DP: LYNN, GRUENBERG, HERRON, DAHLSTROM,
HOLMES, GATTO, RAMRAS
03/26/10 (H) TRANSMITTED TO (S)
03/26/10 (H) VERSION: CSHB 366(JUD)
03/29/10 (S) READ THE FIRST TIME - REFERRALS
03/29/10 (S) TRA
04/08/10 (S) TRA AT 1:00 PM BUTROVICH 205
BILL: HJR 47
SHORT TITLE: SMALL VESSEL CARGO EXEMPTION
SPONSOR(s): REPRESENTATIVE(s) JOHANSEN
02/23/10 (H) READ THE FIRST TIME - REFERRALS
02/23/10 (H) TRA
03/23/10 (H) TRA AT 1:00 PM CAPITOL 17
03/23/10 (H) Moved Out of Committee
03/23/10 (H) MINUTE (TRA)
03/24/10 (H) TRA RPT 5DP 1AM
03/24/10 (H) DP: JOHANSEN, MUNOZ, T.WILSON,
GRUENBERG, PETERSEN
03/24/10 (H) AM: P.WILSON
04/01/10 (H) TRANSMITTED TO (S)
04/01/10 (H) VERSION: HJR 47
04/02/10 (S) READ THE FIRST TIME - REFERRALS
04/02/10 (S) TRA
04/08/10 (S) TRA AT 1:00 PM BUTROVICH 205
WITNESS REGISTER
JODIE SIMSON
Staff to Senator Charlie Huggins
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Provided information on SB 125 on behalf of
the sponsor.
JEFFERY C. OTTESEN, Director
Division of Program Development
Department of Transportation and Public Facilities
Juneau, AK (DOTPF)
POSITION STATEMENT: Testified that DOTPS should be part of the
process to form an RTA.
BRAD SWORTS, Transportation and Environmental Manager
Mat-Su Borough
Palmer, AK
POSITION STATEMENT: Testified in support of creating regional
transit authorities.
JODY KARCZ, Public Transportation Director
Municipality of Anchorage (MOA)
Anchorage, AK
POSITION STATEMENT: Provided supporting information related to
developing an RTA.
RALPH DUERRE, Assistant Attorney
Municipality of Anchorage (MOA)
Anchorage, AK
POSITION STATEMENT: Testified that MOA supports the conceptual
amendment that Senator Paskvan proposed related to SB 152.
JEANNE OSTNES
Staff to Representative Craig Johnson
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Presented HB 366 on behalf of the sponsor.
AVES THOMPSON, Executive Director
Alaska Trucking Association (ATA)
Anchorage, AK
POSITION STATEMENT: Testified in support of HB 366.
DEAN MCKENZIE, President
Alaska West Express
Anchorage, AK
POSITION STATEMENT: Testified in support of HB 366.
JAMES C. DOYLE, Vice President
Weaver Brothers Trucking
Anchorage, AK
POSITION STATEMENT: Testified in support of HB 366.
REPRESENTATIVE KYLE JOHANSEN
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Sponsor of HJR 47.
DAVE SPOKELY
Power Systems and Supplies of Alaska (PSSA)
Ketchikan, AK
POSITION STATEMENT: Testified in support of HJR 47.
ACTION NARRATIVE
1:01:10 PM
CHAIR ALBERT KOOKESH called the Senate Transportation Standing
Committee meeting to order at 1:01 p.m. Present at the call to
order were Senators Menard, Davis, Meyer, Paskvan, and Kookesh.
SB 152-TRANSPORTATION; TRANSIT AUTHORITIES
1:01:39 PM
SENATOR KOOKESH announced the consideration of SB 152. The bill
was heard previously.
JODIE SIMSON, Staff to Senator Charlie Huggins, informed the
committee that a representative from the Department of
Transportation and Public Facilities (DOTPF) was present and
representatives from the Municipality of Anchorage and the MatSu
Borough were online to respond to questions and concerns.
1:02:35 PM
JEFFERY C. OTTESEN, Director, Division of Program Development,
Department of Transportation and Public Facilities (DOTPF),
stated that the fundamental reason that DOTPF has not taken a
position on the legislation is that the bill doesn't identify a
role for DOTPF in either the formative stages or the operations
of a regional transit authority (RTA).
MR. OTTESEN said DOTPF believes that it should be involved in
any future RTA, and that there is also a need for metropolitan
planning organizations (MPO) - the planning authority for
transportation funding from the federal government. Any
community with a population of 50,000 that meets a certain
density standard becomes an MPO, he said. There are two in the
state - the Anchorage Metropolitan Area Transportation System
(AMATS) and the Fairbanks Metropolitan Area Transportation
System (FMATS). It's likely that Mat-Su will become one after
the 2010 census is calculated, he added.
MR. OTTESEN informed the committee that RTAs often span multiple
local government boundaries. An RTA is likely to be partly
within an MPO and partly outside and thus dealing with the state
for funding decisions. He explained that RTAs may include rail
and light rail transit and almost certainly rubber-tire transit.
Even when the primary goal is to build a rail-based system,
rubber-tire transit is necessary to bring people in from
outlying areas to the rail system. There's a great deal of
overlap and DOTPF needs to be included in operational agreements
with respect to operating on rights-of-way, building bus stops,
building park-and-rides, and signal preemption to give buses
priority. He noted that buses already get priority at traffic
lights in Anchorage.
He described Sound Transit in Seattle as one of the newer and
more innovative RTAs in the nation. It is doing commuter rail,
light rail, and has several rubber-tire transit routes. The
Washington state transportation department saw an obvious need
to be a part of that RTA and it has a commissioner-level voting
member on that transit board.
1:06:33 PM
MR. OTTESEN explained to the committee that if an RTA were to
straddle a borough and the unorganized borough, DOTPF's role
might be useful because the unorganized borough has no local
government at the borough level. In that case, the Legislature
would act as the borough assembly and the state would act as the
local government. He cited a potential RTA in Fairbanks with
routes to Delta Junction or Nenana as an example. These are the
reasons for the need for both MPOs and DOTs to have a role in
RTAs, he said. Whether it's permissive or mandatory is up to the
Legislature, but it ought to at least be allowed.
SENATOR KOOKESH observed that that isn't part of this bill.
MR. OTTESEN agreed the bill is silent on that point, which in
the future would lead to a question about the intent.
CHAIR KOOKESH asked DOTPF's position on the bill as currently
written.
MR. OTTESEN replied DOTPF believes that RTAs are necessary and
appropriate in Alaska.
CHAIR KOOKESH asked if DOTPF believes that this is a first step.
MR. OTTESEN said yes and it would be better if the role of MPOs
and DOTPF were clarified in the formation of the RTA.
1:08:48 PM
SENATOR DAVIS asked if he brought an amendment or language to
clarify the role of DOTPF.
MR. OTTESEN offered to provide language. Responding to a further
question, he said he prefers to have the intent clear from the
outset.
SENATOR MENARD asked if he is suggesting that someone from DOTPF
should be on the RTA board.
MR. OTTESEN replied it's probably appropriate for each DOTPF
regional director to be in that role.
SENATOR MENARD asked him to clarify the priority issue.
MR. OTTESEN explained that bus prioritization works much the
same as it does for emergency vehicles. Priority is always given
to the emergency vehicle at intersections while priority is
given to a bus if it is full. If the bus is empty, it would not
receive priority.
1:11:47 PM
SENATOR MENARD mentioned the stimulus money and said she
supports the bill.
MR. OTTESEN said there will be additional money and most of it will
run through the MPO or state DOT. That's why RTAs want those
representatives on their board, he said. At the federal level MPOs
are the planning authority. The best example in Alaska is AMATS and
the Knik Arm Bridge and Toll Authority (KABATA) Board, he said. He
related that KABATA was established by the Legislature, yet the AMATS
MPO is driving whether or not that project proceeds. Recently there
was a vote to potentially shut that project down for a decade and
although that didn't happen, the message is that MPOs and other
regional transportation organizations need to collaborate.
1:14:12 PM
SENATOR PASKVAN asked if he is saying that the bill is a first
step, but that DOTPF needs to be involved at some point in time.
MR. OTTESEN replied it's appropriate because of the way the
federal funding works and it would increase the likelihood of a
successful RTA.
SENATOR PASKVAN asked if a conceptual amendment would be
appropriate that says, "A regional transit authority created in
this section may participate with a RTA created by this act."
MR. OTTESEN agreed that permissive language would be fine. DOTPF
controls the funding strings to a degree so there is impetus for
having it at the table.
MR. OTTESEN suggested the amendment language also include "a
representative from any coincident metropolitan planning
organization." He noted that the draft transportation bill in
Congress sends money directly to the MPOs so it would no longer
run through the state DOT or be appropriated by the Legislature.
1:17:03 PM
BRAD SWORTS, Transportation and Environmental Manager, Mat-Su
Borough, stated support for creating regional transit
authorities. He related that Mat-Su Borough has been working
closely with the Municipality of Anchorage on the matter. He
related that transit operations within the borough and between
the borough and Anchorage continue to increase. It's
increasingly clear that the management and coordination of
improved transit operations should be carried out through an
RTA, he said. Municipalities and communities in Alaska would
benefit from passage of SB 152.
JODY KARCZ, Public Transportation Director, Municipality of
Anchorage (MOA), pointed out that when the Mat-Su Borough and
the MOA began talking about the process to establish an RTA,
DOTPF was brought to the table and it continues to be a strong
player.
Referring to the "Opticom" transit priority bus project that Mr.
Ottesen mentioned, she explained that the municipal assembly
approved a one-year pilot program for two bus routes. Just 20 of
the 217 traffic signals within Anchorage are equipped to accept
bus priority during peak hours in peak directions, she said. So
far there has been minimal impact on cross streets.
1:21:32 PM
SENATOR PASKVAN asked if she would have any problem with the
conceptual amendment to include DOTPF and coincident
metropolitan planning organizations in the RTA created by the
Act.
MS. KARCZ replied it's a good amendment.
SENATOR MENARD said she would like the language to say "shall"
instead of "may" to ensure that DOTPF is included.
CHAIR KOOKESH clarified that this is a conceptual amendment.
SENATOR PASKVAN said he has no problem with that if DOTPF
agrees.
1:22:52 PM
RALPH DUERRE, Assistant Attorney, Municipality of Anchorage
(MOA), said MOA supports the conceptual amendment that Senator
Paskvan proposed. He related that SB 152 is flexible to allow a
variety of transportation plans. There is no question that DOTPF
and MPOs will play vital role in the success of the RTA and
their participation is most welcome. However, DOTPF and MPO
participation should be on a permissive basis.
SENATOR KOOKESH closed public testimony.
1:25:46 PM
SENATOR PASKVAN moved conceptual Amendment 1 to add a new
section (b)(3) to read as follows:
The Department of Transportation and Public Facilities
may participate and/or a representative of a
coincident metropolitan planning organization may
participate with a regional transit authority created
by this Act.
SENATOR MENARD objected to the word "may" because it is too
permissive.
CHAIR KOOKESH asked Mr. Ottesen to provide his perspective.
MR. OTTESEN stated a preference for the permissive language.
SENATOR KOOKESH agreed with that position.
1:28:01 PM
SENATOR MENARD removed her objection.
CHAIR KOOKESH found no further objection and announced that
conceptual Amendment 1 was adopted. He asked the will of the
committee.
1:28:28 PM
SENATOR PASKVAN moved to report SB 152, as conceptually amended,
from committee with individual recommendations and attached
fiscal note(s). There being no objection, CSSB 152(TRA) moved
from the Senate Transportation Standing Committee.
At ease from 1:29 p.m. to 1:30 p.m.
HB 366-MOTOR CARRIER INDEMNIFICATION AGREEMENTS
SENATOR KOOKESH announced consideration of HB 366. [CSHB
366(JUD) was before the committee.]
1:30:54 PM
JEANNE OSTNES, Staff to Representative Craig Johnson, said HB
366 places a provision in statute to clarify that both shippers
and motor carriers are responsible for their own negligence or
omissions.
1:32:03 PM
AVES THOMPSON, Executive Director, Alaska Trucking Association
(ATA), stated support for HB 366. He related that one priority
of ATA this year is to achieve tort reform with regard to
indemnification agreements in motor carrier transportation
contracts. Motor carriers must comply with the federal motor
carrier safety regulations when transporting goods as well as
common law or statutory duties or responsibilities. Likewise,
shippers and other parties have legal duties and
responsibilities to fulfill when providing goods for
transportation. However, it's becoming more common for shippers
to include language in motor carrier contracts requiring the
motor carrier to indemnify and hold harmless the shipper even
when the shipper fails to meet its legal duties and
responsibilities.
The CS for HB 366 provides statutory language that voids
contractual provisions in a motor carrier transportation
contract that indemnifies either the shipper or the motor
carrier for their own negligent or intentional acts or omissions
that lead to claims. This levels the playing field and makes
everyone responsible for their own actions without establishing
new duties or responsibilities. The bill doesn't limit the
freedom to contract and each party can control its employees or
agents to improve unsafe practices. Industry groups that support
the legislation include BP, ConocoPhillips, Association of
General Contractors, Alaska Miners Association, Alaska State
Chamber of Commerce, and the Ocean Carriers Equipment Management
Association. He noted that twelve states have similar laws and
eight states have legislation pending.
1:35:28 PM
SENATOR PASKVAN stated that HB 366 advances good social policy
and will promote safety; each person should be responsible for
his or her own conduct. To allow private parties to say that
someone else will pay for their omissions or negligence is a
troubling concept, he said.
SENATOR MENARD said she imagines he has heard the input from the
Alaska Insurance Company about shifting responsibility.
MR. THOMPSON said he isn't aware of that.
MS. OSTNES said Linda Hall, the division director for insurance,
looked at the bill and had no problem with it. Ms. Ostnes added
that the intent of the legislation is not to void a whole
contract, just the portion dealing with omissions or neglect.
1:37:35 PM
DEAN MCKENZIE, President, Alaska West Express (AWE), stated
support for HB 366. He noted that he submitted a letter to the
sponsor citing an unresolved issue with a company that does
drilling work in Alaska, nationally, and internationally.
Currently AWE is working with two more companies that have
similarly lopsided language in their master service agreements,
which takes a lot of time. Smaller contractors or carriers may
not have the ability to devote this much time, he said. As
others have stated, we should all be responsible for our own
actions; we should not be forced to take responsibility for the
actions of others over whom we have no control, he said.
1:39:00 PM
JAMES C. DOYLE, Vice President, Weaver Brothers Trucking, stated
support for HB 366. He cited an example of a situation that this
legislation would prevent. Four or five days after a trucking
company delivered fuel to a gas station, a customer was burned
while filling a portable gas tank because of an arc. The
trucking company had to pay the claim even though it had nothing
to do with the actual incident because it had signed an
agreement indemnifying the gas station from any type of loss. HB
366 would correct this type of wrong, he said.
1:40:39 PM
SENATOR KOOKESH closed public testimony and asked the will of
the committee.
SENATOR PASKVAN moved to report CS for HB 366 from committee
with individual recommendations and attached fiscal note(s).
There being no objection, CSHB 366(JUD) moved from the Senate
Transportation Standing Committee.
At ease from 1:41 p.m. to 1:42 p.m.
HJR 47-SMALL VESSEL CARGO EXEMPTION
SENATOR KOOKESH announced the consideration of HJR 47.
1:42:46 PM
REPRESENTATIVE KYLE JOHANSEN, sponsor of HJR 47, said the
resolution asks the U.S. Coast Guard to amend regulations to
allow small vessels to transport concurrently fuel, cargo, and
passengers. He related that constituents of his are trying to
fill a niche market to deliver supplies to remote communities
along the coast that are too large for a plane but too small to
warrant delivery by barge. He explained that a father and son
partnership designed and received certification to build and
operate one vessel. They are not able to build a second vessel
without a change in Coast Guard regulations, which has not been
forthcoming.
HJR 47 asks the Coast Guard to consider the unique
transportation challenges in Alaska and other coastal
communities nationwide and change the regulations.
SENATOR MENARD stated support for the resolution and asked how
much fuel oil the vessel carries.
REPRESENTATIVE JOHANSEN said he has someone online who can
provide details.
SENATOR MEYER asked if the vessel was built in the Ketchikan
shipyard.
REPRESENTATIVE JOHANSEN said no; he isn't sure where it was
built, but this class of vessel would certainly interest the
shipyards in Ketchikan, Sitka and others in Alaska.
1:47:10 PM
DAVE SPOKELY, Power Systems and Supplies of Alaska (PSSA), said
that with the change in the timber industry there was a need for
smaller vessels to deliver fuel and supplies to small remote
communities. He and his partner designed the high-speed, 44-foot
aluminum landing craft in conjunction with the Coast Guard and
the Alaska Department of Environmental Conservation (DEC). It
carries 3000 gallons of fuel and is a spill-response vessel. It
was built in the Seattle area, but he owns the design and is
prepared to build the vessels in Alaska.
SENATOR MENARD asked if Homeland Security has any issue with
this type of vessel.
MR. SPOKELY said yes. Homeland Security didn't initially take
issue, but their attorneys said the current regulations wouldn't
allow aluminum vessels to commercially carry bulk fuel
regardless of the quantity. Coast Guard Station Juneau started
the process to write the regulations, but Homeland Security
wouldn't authorize funding for development of the regulations.
Without new regulations he is unable to expand his fleet.
REPRESENTATIVE JOHANSEN added that his office has been working
with Alaska's congressional delegation and all three members are
supportive.
1:51:46 PM
SENATOR MENARD asked if it is safe to say that new regulations
in this regard could promote up to 100 jobs.
REPRESENTATIVE JOHANSEN replied he isn't sure how many jobs
might result, but he understands that Mr. Spokely has been
overwhelmed with requests for the vessel's services. He added
that he and other Southeast legislators are trying to create a
marine center in southern Southeast Alaska.
SENATOR KOOKESH closed public testimony and asked the will of
the committee.
1:53:15 PM
SENATOR PASKVAN moved to report HJR 47 from committee with
individual recommendations and attached fiscal note(s). There
being no objection, HJR 47 moved from the Senate Transportation
Standing Committee.
1:53:43 PM
There being no further business to come before the committee,
Chair Kookesh adjourned the meeting at 1:53 p.m.
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