02/15/2007 01:30 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB41 | |
| SB15 | |
| SB49 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| SB 41 | |||
| = | SB 15 | ||
| = | SB 49 | ||
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
February 15, 2007
1:35 p.m.
MEMBERS PRESENT
Senator Albert Kookesh, Chair
Senator John Cowdery, Vice Chair
Senator Donny Olson
Senator Bill Wielechowski
MEMBERS ABSENT
Senator Gary Wilken
COMMITTEE CALENDAR
SENATE BILL NO. 41
"An Act repealing the fee imposed on the sale of studded tires."
MOVED CSSB 41(L&C) OUT OF COMMITTEE
SENATE BILL NO. 15
"An Act extending the termination date for the Board of Marine
Pilots; and providing for an effective date."
MOVED CSSB 15(TRA) OUT OF COMMITTEE
SENATE BILL NO. 49
"An Act relating to commemorative license plates celebrating
Alaska's 50th anniversary as a state; and providing for an
effective date."
MOVED CSSB 49(STA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 41
SHORT TITLE: REPEAL STUDDED TIRE FEE
SPONSOR(s): SENATOR(s) WIELECHOWSKI
01/16/07 (S) PREFILE RELEASED 1/5/07
01/16/07 (S) READ THE FIRST TIME - REFERRALS
01/16/07 (S) L&C, TRA, FIN
01/25/07 (S) L&C AT 1:30 PM BELTZ 211
01/25/07 (S) Heard & Held
01/25/07 (S) MINUTE(L&C)
01/25/07 (S) MINUTE(L&C)
01/30/07 (S) L&C AT 1:30 PM BELTZ 211
01/30/07 (S) -- Rescheduled to 02/01/07 --
02/01/07 (S) L&C AT 2:00 PM BELTZ 211
02/01/07 (S) Moved CSSB 41(L&C) Out of Committee
02/01/07 (S) MINUTE(L&C)
02/02/07 (S) L&C RPT CS 4DP 1DNP NEW TITLE
02/02/07 (S) DP: ELLIS, DAVIS, STEVENS, HOFFMAN
02/02/07 (S) DNP: BUNDE
02/15/07 (H) TRA AT 1:30 PM CAPITOL 17
BILL: SB 15
SHORT TITLE: BOARD OF MARINE PILOTS
SPONSOR(s): SENATOR(s) THERRIAULT
01/16/07 (S) PREFILE RELEASED 1/5/07
01/16/07 (S) READ THE FIRST TIME - REFERRALS
01/16/07 (S) TRA, L&C, FIN
01/30/07 (S) TRA AT 2:00 PM BUTROVICH 205
01/30/07 (S) -- Meeting Canceled --
02/15/07 (H) TRA AT 1:30 PM CAPITOL 17
BILL: SB 49
SHORT TITLE: COMMEMORATIVE PLATES: STATEHOOD ANIV.
SPONSOR(s): SENATOR(s) STEVENS
01/16/07 (S) READ THE FIRST TIME - REFERRALS
01/16/07 (S) STA, TRA, FIN
01/23/07 (S) STA AT 9:00 AM BELTZ 211
01/23/07 (S) Moved CSSB 49(STA) Out of Committee
01/23/07 (S) MINUTE(STA)
01/24/07 (S) STA RPT CS 3DP 2NR SAME TITLE
01/24/07 (S) DP: MCGUIRE, STEVENS, GREEN
01/24/07 (S) NR: FRENCH, BUNDE
01/30/07 (S) TRA AT 2:00 PM BUTROVICH 205
01/30/07 (S) -- Meeting Canceled --
02/15/07 (H) TRA AT 1:30 PM CAPITOL 17
WITNESS REGISTER
JOHANNA BALES
Excise Auto group
Anchorage, AK
POSITION STATEMENT: Spoke in favor of SB 41
GREG WICHCHICH
Anchorage, AK
POSITION STATEMENT: Spoke in favor of SB 41
DUANE BANNOCK, Director
Division of Motor Vehicles
Department of Administration
1300 W Benson Blvd.
Anchorage AK 99503.
POSITION STATEMENT: Spoke in favor of SB 49
GAIL PHILLIPS, Chair
Alaska Statehood Celebration Commission
Department of Commerce, Community, and Economic Development
Homer, Alaska
POSITION STATEMENT: Spoke in favor of SB 49
SENATOR GENE THERRIAULT
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of SB 15
RICK URION, Director
Division of Corporations, Business, and Professional Licensing
Department of Commerce, Community & Economic Development
PO Box 110800
Juneau, AK 99811-0800
POSITION STATEMENT: Spoke in favor of SB 15
ACTION NARRATIVE
CHAIR ALBERT KOOKESH called the Senate Transportation Standing
Committee meeting to order at 1:35:47 PM. Present at the call to
order were Senators Cowdery, Wielechowski, Olson, and Chair
Kookesh.
SB 41-REPEAL STUDDED TIRE FEE
CHAIR KOOKESH announced SB 41 to be up for consideration.
1:36:35 PM
SENATOR WIELECHOWSKI, sponsor of SB 41, explained that it would
repeal the $5 retail fee on the sale of studded tires. The fee
has had a damaging impact on small businesses selling tires, and
working families. Research shows that studded tires positively
impact the Alaskan economy, and the tax defers people from
buying them.
1:39:03 PM
SENATOR COWDERY asked for the cost associated with collecting
the fee.
SENATOR WIELECHOWSKI deferred the question to the
administration. The state does pay for one full time position,
but he didn't know that it would be eliminated.
SENATOR OLSON said that studded tires increase road maintenance
fees.
SENATOR WIELECHOWSKI said he would provide a copy of a study
that showed that costs are incurred by studded tires, and said
that technology has significantly minimized studded-tire damage,
which is mostly done when people use them in the summer. He said
repealing the tax is a way to give back to working families in
Alaska.
SENATOR OLSON asked if the state is paying the tax as well.
SENATOR WIELECHOWSKI didn't have the answer.
1:43:33 PM
SENATOR COWDERY commented that he doesn't use studded tires.
SENATOR WIELECHOWSKI reiterated that there are a number of
studies indicating that accidents drop when studded tires are
allowed. In fact studs break up the ice and make the roads safer
for non stud users.
SENATOR COWDERY stated his belief that lightweight studs are
just as damaging as heavy ones.
1:46:21 PM
JOANNA BALES, Supervisor for the Excise Auto Group, confirmed
Senator Wielechowski's testimony and said the primary complaint
about the tax is that this is the only one levied at the retail
level.
She said that one tax technician was hired to deal with the tire
tax, but that they wouldn't necessarily lose their job if the
tax was repealed, and there would be a savings of $56,000 to the
state. Also, the state is exempt from the tax, although it is
using heavyweight studs on its DOT and state vehicles.
Complaints have been made about this disparity.
SENATOR OLSON asked if federal or commercial vehicles are exempt
as well.
MS. BALES replied that federal vehicles are exempt but not
commercial ones. She confirmed that the administration is in
favor of repealing the fee, which earned $1.5 million in the
first full year of its implementation.
SENATOR OLSON remarked that the governor's announced reduction
in the state budget would bring about cuts in other departments,
and asked for plans to make up for the shortfall.
MS. BALES said she didn't have that information.
SENATOR OLSON said that the state won't be saving any money if
the tax technician is kept on the payroll, and asked if any
other taxes are being proposed.
MS. BALES answered that the cruise ship passenger tax will bring
in more money, and that the tire tax technician would take a
position working for that project.
SENATOR COWDERY commented on tire damage to asphalt and said the
problem lies with the mix used in making asphalt.
SENATOR OLSON said that the problem may be that projects are
going to the lowest bidder.
SENATOR COWDERY said that it is not the fault of the
contractors, because the DOT provides the specifications.
1:54:05 PM
GREG WICHICH, an Anchorage small business owner, said that he
has been collecting the fee from his customers and submitting it
to the state. The system has been difficult to administer, and
the state online payment system is burdensome to his staff and
his customers. The tax penalizes people who try to be safe on
the state's roads, which doesn't make sense.
SENATOR OLSON asked about the difference between a retail level
tax and a sales tax.
MR. WITCHICH said he couldn't answer that question.
SENATOR OLSON asked if Mr. Witchich has been subject to
penalties as a result of the difficulty of paying this tax.
MR. WICHICH replied yes and explained his particular situation.
SENATOR COWDERY asked if he received a fee for collecting the
tax.
MR. WITCHICH answered yes if it is timely. He reiterated he
doesn't understand why the public should want to tax itself in
this way.
1:59:47 PM
SENATOR WIELECHOWSKI commented that the governor hasn't included
the tax receipts in her current budget.
SENATOR COWDERY made a motion to move SB 41 from committee with
individual recommendations and attached fiscal note(s). There
being no objection, CSSB 41(L&C) moved from committee.
SB 15-BOARD OF MARINE PILOTS
CHAIR KOOKESH announced SB 15 to be up for consideration.
2:02:48 PM
SENATOR THERRIAULT, sponsor of SB 15, explained that the bill
extends the Board of Marine Pilots by eight years, to 2015. When
dealing with sunset dates he typically defaults to the auditors'
recommendation. He noted that the packets distributed to the
committee should contain the auditors' report and that Pat
Davidson, Legislative Auditor, was available to respond to
questions. He said the "audit shop" had been watching a number
of issues related to the operation of the board including random
drug testing of marine pilots.
SENATOR COWDERY asked if an eight year extension was standard.
SENATOR THERRIAULT replied that extensions were shorter in the
past, but the legislature decided that the frequency of the
sunset dates was shorter than it needed to be. The suggestion
was that the sunsets should be extended.
2:06:42 PM
RICK URION, Director of the Division of Corporations, Business,
and Professional Licensing for the Department of Commerce,
Community, & Economic Development (DCCED), stated his support
for SB 15. The Board of Marine Pilots has completed its audit
period, and all suggestions that the auditors made were
appropriately addressed. The board provides a valuable service
and it ought to be continued, he stated.
ALBERT CLOUGH, Deputy Commissioner of the DCCED and Chair of the
Marine Pilots Board, stated that the board fully supports
extending the sunset date, but it has no opinion on the length
of the extension.
CHAIR KOOKESH asked Pat Davidson to discuss the length of the
extension.
PAT DAVIDSON, Auditor for the Division of Legislative Audit
(DLA), relayed that several years ago the suggested extension
time for boards and commissions changed from four years to eight
years. The sunset notion relates to whether or not a board or
commission should remain in existence, but when there is a 4
year rotation only operational efficiencies are addressed to the
exclusion of continuation issues.
MS. DAVIDSON said the DLA recommended a six year extension for
the Board of Marine Pilots. However, a concern was that the
board membership includes marine pilots, industry, and public
members, and there have been issues related to marine pilots and
the Executive Branch Ethics Act and less directly with industry
members. The result is that there is not a sufficient balance
between industry and marine pilots.
She said that the division conducted a survey of pilots and
industry members and found that both wanted the board to remain
involved in rate setting, so a six-year extension was suggested
so that the division would be able to look back and see if some
of the rate-setting issues were resolved.
2:11:00 PM
SENATOR WIELECHOWSKI asked if the audit division supports an
eight-year extension.
MS. DAVIDSON replied that that it recommended the shorter
extension but that it is the legislature's decision.
SENATOR COWDERY asked her to expand upon the audit's
recommendations.
MS. DAVIDSON said there were three operational issues: random
drug testing, the administration and sample pool of which should
be improved; the issue of vacant positions which led to delayed
investigations; and competency in performance monitoring and
peer review which the survey showed to be ineffective.
2:14:28 PM
SENATOR THERRIAULT said he was comfortable with the auditors'
six-year recommendation.
SENATOR OLSON asked if an amended bill would impact the fiscal
note.
SENATOR THERRIAULT answered that it likely would not, as the
fiscal note only accounts for five years.
SENATOR OLSON asked if audits were done by the auditory staff or
contracted out.
SENATOR THERRIAULT replied that most audits are done in-house.
CHAIR KOOKESH moved to adopt Amendment 1, changing the extension
of the Board of Marine Pilots from eight years to six years.
There being no objection, Amendment 1 was adopted.
CHAIR KOOKESH closed public testimony and asked the committee
for final comments.
SENATOR OLSON asked if the marine pilots had weighed in on the
issue of six versus eight years.
CHAIR KOOKESH said there had been a discussion with the pilots
and he didn't hear any objection.
2:18:14 PM
SENATOR OLSON motioned to report SB 15, as amended, from
committee with individual recommendations and attached fiscal
note(s). There being no objection, CSSB 15(TRA) moved from
committee.
SB 49 COMMEMORATIVE PLATES: STATEHOOD ANIV.
CHAIR KOOKESH announced SB 49 to be up for consideration. Before
the committee was CSSB 49(STA).
2:20:32 PM
DOUG LETCH, Staff to Senator Gary Stevens, Sponsor of SB 49,
said the bill creates a commemorative license plate to celebrate
the 50th anniversary of statehood, which happens in 2009. The
legislature created the Alaska Statehood Celebration Commission,
which recommended that a commemorative license plate be issued.
SB 49 would give the Division of Motor Vehicles statutory
authority to issue this special license plate. He noted that the
packets contain a letter of support from Gail Phillips, the
chair of the commission. There is a zero fiscal note.
SENATOR OLSON asked if there would be an additional fee for the
commemorative plates.
2:24:20 PM
DUANE BANNOCK, Director of the Division of Motor Vehicles,
Department of Administration (DOA), said that there would be a
$5 fee if someone wanted to replace their current license plate
with the commemorative plate. He further explained that the
registration fee is oftentimes confused with the license plate
fee. In fact, the commemorative plate, which will be considered
standard issue, is free; it's the registration of the vehicle
that incurs the fee. Specialty plates do incur a fee, but nobody
pays for the standard plate.
SENATOR COWDERY asked who designed the commemorative plate.
MR. BANNOCK replied that the design was created by the Statehood
Celebration Commission. He explained that the fiscal note is
zero because the new design is simply a substitute so the money
already in the budget would go to pay for the new design.
2:26:19 PM
GAIL PHILLIPS, Chair of the Alaska Statehood Celebration
Commission, said the commission has been working with the
Department of Motor Vehicles for some time to develop the
commemorative plate. Several years ago there was a logo contest
for the statehood celebration and that was incorporated into the
license plate. The artist is from Sitka.
SENATOR OLSON asked when the plates will be available to the
public.
MS. PHILLIPS said the plate will be the standard issue from
January 2, 2008 through the end of 2009.
SENATOR COWDERY moved to report CSSB 49(STA) from committee with
individual recommendations and attached fiscal note(s). There
being no objection, the motion carried.
There being no further business to come before the committee,
Chair Kookesh adjourned the meeting at 2:29:24 PM.
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