03/27/2007 01:30 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB130 | |
| SB68 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| * | SB 130 | ||
| = | SB 68 | ||
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 27, 2007
1:30 p.m.
MEMBERS PRESENT
Senator Albert Kookesh, Chair
Senator John Cowdery, Vice Chair
Senator Bill Wielechowski
Senator Gary Wilken
MEMBERS ABSENT
Senator Donny Olson
OTHER LEGISLATORS PRESENT
Senator Hollis French
COMMITTEE CALENDAR
SENATE BILL NO. 130
"An Act relating to the registration of certain vehicles owned
by ranchers, farmers, or dairy workers."
MOVED SB 130 OUT OF COMMITTEE
SENATE BILL NO. 68
"An Act requiring motor vehicle insurers to provide to the
commissioner of administration a database listing vehicle
insurance policy information that will allow the commissioner to
verify whether mandatory motor vehicle insurance has been
obtained, limiting access to the database, establishing methods
for proving that mandatory motor vehicle insurance is in place,
allowing the additional penalties of suspending registration and
vehicle impoundment and forfeiture for failure to have mandatory
motor vehicle insurance, and authorizing hearings after
suspension of registration for failure to have mandatory motor
vehicle insurance."
MOVED CSSB 68(TRA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 130
SHORT TITLE: RANCH, FARM, DAIRY VEHICLE REGISTRATION
SPONSOR(s): SENATOR(s) GREEN
03/21/07 (S) READ THE FIRST TIME - REFERRALS
03/21/07 (S) TRA, FIN
03/27/07 (S) TRA AT 1:30 PM BUTROVICH 205
BILL: SB 68
SHORT TITLE: MOTOR VEHICLE INSURANCE
SPONSOR(s): SENATOR(s) FRENCH
01/26/07 (S) READ THE FIRST TIME - REFERRALS
01/26/07 (S) L&C, TRA, FIN
02/08/07 (S) L&C AT 1:30 PM BELTZ 211
02/08/07 (S) Heard & Held
02/08/07 (S) MINUTE(L&C)
02/27/07 (S) L&C AT 1:30 PM BELTZ 211
02/27/07 (S) Heard & Held
02/27/07 (S) MINUTE(L&C)
03/06/07 (S) L&C AT 1:30 PM BELTZ 211
03/06/07 (S) Moved CSSB 68(L&C) Out of Committee
03/06/07 (S) MINUTE(L&C)
03/07/07 (S) L&C RPT CS 3DP 1DNP 1AM NEW TITLE
03/07/07 (S) DP: ELLIS, DAVIS, STEVENS
03/07/07 (S) DNP: BUNDE
03/07/07 (S) AM: HOFFMAN
03/20/07 (S) TRA AT 1:00 PM BUTROVICH 205
03/20/07 (S) Scheduled But Not Heard
03/27/07 (S) TRA AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
Darwin Peterson
Staff to Senator Lyda Green
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Presented SB 130 for the sponsor
Larry DeVilbiss, Director
Division of Agriculture
Department of Natural Resources (DNR)
Wasilla, AK
POSITION STATEMENT: In support of SB 130
Steve Van Troba, representing himself
Palmer, AK
POSITION STATEMENT: In support of SB 130
Duane Bannock, Director
Division of Motor Vehicles
Department of Administration
Anchorage, AK
POSITION STATEMENT: In support of SB 130
Bill Ward, representing himself
Delta Junction, AK
POSITION STATEMENT: In support of SB 130
Adam Griswold, representing himself
Delta Junction, AK
POSITION STATEMENT: In support of SB 130
Nate Griswold, representing himself
Delta Junction, AK
POSITION STATEMENT: In support of SB 130
Charles Pecchio, President
VeriSol Verification Solutions Incorporated
Kennesaw, Georgia
POSITION STATEMENT: In support of SB 130
Tom McGrath, representing himself
Anchorage, AK
POSITION STATEMENT: In support of SB 130
Kenton Brine, Northwest regional manager
Property Casualty Insurers Association of America
Olympia, WA
POSITION STATEMENT: In support of SB 130
Allison Biastock
Staff to Senator French
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Available for questions on SB 130
ACTION NARRATIVE
CHAIR ALBERT KOOKESH called the Senate Transportation Standing
Committee meeting to order at 1:30:29 PM. Present at the call to
order were Senators Cowdery, Wielechowski, Wilken, and Chair
Kookesh.
SB 130-RANCH, FARM, DAIRY VEHICLE REGISTRATION
CHAIR KOOKESH announced the consideration of SB 130.
DARWIN PETERSON, aide to Senate President Lyda Green, sponsor of
SB 130, explained that farm vehicles are getting heavier and
bigger and the current maximum weight regulations are out of
date; the bill will update the regulation from 16,000 to 20,000
lbs.
1:32:45 PM
SENATOR WIELECHOWSKI asked how many vehicles will be affected by
the bill.
MR. PETERSON replied that there are 466 farm vehicles currently
registered in Alaska with expiration dates of 2007, 2008, or
2009.
SENATOR WIELECHOWSKI asked for the rationale for the current
16,000 lbs restriction.
MR. PETERSON replied that true commercial vehicles shouldn't be
used for farm purposes, so a weight restriction applies to
smaller farm trucks.
SENATOR WIELECHOWSKI asked if there's any concern about weight
impact on the road system.
MR. PETERSON replied that there is a concern about road damage
regarding heavy trucks but the difference made by the bill will
be negligible.
SENATOR WIELECHOWSKI asked what size a 20,000 lb truck would be.
MR. PETERSON replied that it's larger than a Dodge Ram pick-up
truck, in the same category as a cargo van or a bus.
1:35:16 PM
CHAIR KOOKESH asked for an explanation of the farm vehicle
registration plate.
MR. PETERSON replied that the specialized farm plate is in the
same category as legislator plate or veteran plate.
1:36:08 PM
SENATOR OLSON asked if other states have similar farm vehicle
programs.
MR. PETERSON replied that almost every state does.
SENATOR WIELECHOWSKI asked if other states have similar weight
limits or just similar plates.
MR. PETERSON replied that he was referring to just the
specialized plate program, and that weight limits vary for each
state.
1:37:17 PM
SENATOR WILKEN asked if there's a committee substitute for the
bill regarding the plate.
MR. PETERSON replied that the bill doesn't change farm plate
legislation.
SENATOR WILKEN asked why a particular pamphlet was made
available to the committee.
MR. PETERSON replied that it was simply to show an example of
what the farm plate looks like.
1:39:04 PM
LARRY DEVILBISS, Director for the Division of Agriculture,
Department of Natural Resources (DNR), said that the farm plates
don't necessarily need to be changed by the bill, and the
department finds it appropriate to raise the limit to 20,000
lbs.
1:41:08 PM
STEVE VAN TROBA, representing himself, said that when he travels
to Alberta, Canada, to buy hay and he pays taxes that would be
avoided by having farm plates.
SENATOR WIELECHOWSKI asked if Mr. Van Troba opposes the bill.
MR. VAN TROBA replied that he supports the bill.
SENATOR WIELECHOWSKI asked if Mr. Van Troba will be required to
pay additional fees if the bill does not pass.
MR. VAN TROBA answered yes.
1:43:04 PM
DUANE BANNOCK, Director for the Division of Motor Vehicles,
Department of Administration (DOA), related the history of the
weight-limit law in Alaska and said the DMV supports the bill.
SENATOR WIELECHOWSKI asked for the punishment for driving over
the weight limit.
MR. BANNOCK said that being over-limit with the wrong plate
would result from one of three elements: a DMV error, improper
information provided by the driver, or fraudulent use of the
plate. The two latter scenarios would result in violation fines.
1:45:18 PM
SENATOR COWDERY asked if the Department of Transportation and
Public Facilities (DOTPF) controls over-weight vehicle permits.
MR. BANNOCK said that the DOTPF does control such permits.
BILL WARD, representing himself, said that it's appropriate to
raise the weight limit; licensed vehicle government is different
from commercial vehicle government, including hours of service
regulations, driver's license requirements, and inspections.
Operation within current statute is possible but truck
modifications and updates will be difficult without the new
requirements.
1:50:07 PM
ADAM GRISWOLD, representing himself, said that it's hard to buy
trucks that meet the current weight limit, and he is in favor of
the bill.
NATE GRISWOLD, representing himself, said that he does have a
need for new equipment but it's hard to find under current
regulation.
CHAIR KOOKESH asked for the will of the committee.
1:51:18 PM
SENATOR COWDERY motioned to report SB 130 from committee with
individual recommendations and attached fiscal note(s). There
being no objection, the motion carried.
SB 68-MOTOR VEHICLE INSURANCE
CHAIR KOOKESH announced the consideration of SB 68. He asked for
a motion to adopt the committee substitute (CS).
1:53:18 PM
SENATOR COWDERY moved to adopt the proposed committee substitute
to SB 68, labeled 25-LS0342\N, Version N, as the working
document of the committee. There being no objection, the motion
carried.
CHAIR KOOKESH asked the sponsor to present the bill.
1:54:04 PM
SENATOR FRENCH explained that SB 68 will make it easier for
police to verify whether a driver does have insurance on their
car or not. 14 percent of Alaskan drivers are uninsured, but 28
percent of crashes involve an uninsured driver. Currently
there's no method for enforcing a mandatory insurance law; this
bill will make points of contact for verification. There will be
an online method, which has been shown to be effective, as well
as a provision that allows municipalities to impound uninsured
cars.
He pointed out that the committee substitute is the result of
many hours of work with industry representatives to make sure
that the bill is acceptable to everyone.
1:58:02 PM
SENATOR COWDERY asked if the Division of Motor Vehicles (DMV)
checks for insurance on a car.
SENATOR FRENCH replied that currently it's an honor system.
SENATOR COWDERY asked if the new system proposed by the bill
will make proving insurance mandatory.
SENATOR FRENCH replied that if the online system is adopted it
will make it much easier to prove insurance, and gave an example
of how people will show false proof of insurance.
SENATOR COWDERY asked if an amendment to exempt commercial
vehicles would be accepted.
SENATOR FRENCH said that he would; most states exempt commercial
vehicles from the online verification system because of the
relatively low risk of non-insurance.
SENATOR COWDERY asked where in the bill an amendment would best
fit.
SENATOR FRENCH replied that section five would be best.
SENATOR COWDERY made a motion to adopt a conceptual amendment to
SB 68, allowing for the exemption of commercial vehicles.
SENATOR WILKEN objected, and said what works for automobile
drivers should be good for commercial drivers.
SENATOR WIELECHOWSKI asked why commercial vehicles should be
exempted from the bill.
SENATOR FRENCH replied that the DMV said that virtually all
commercial vehicles carry insurance through the driver, and it's
not concerned about such drivers carrying insurance.
SENATOR WIELECHOWSKI asked if the bill creates some sort of
burden for commercial vehicles, and why they should be treated
differently.
SENATOR FRENCH replied that the DMV would have to answer the
question.
2:01:44 PM
MR. BANNOCK said that commercial vehicles would only be exempted
from electronic verification of insurance. Many commercially
owned vehicles are self insured and thus wouldn't be included in
the system; also, in the commercial category there are 50,000
vehicles in the state out of a total of 900,000 registered
vehicles, so clearly most vehicles are not commercial.
He added that he would prefer to use the language "vehicles
registered commercially" as opposed to "commercial vehicles";
rental car companies are self-insured commercial vehicles as
well.
SENATOR WIELECHOWSKI replied that he understood the difficulties
of including commercial vehicles in the online system, and asked
for the number of accidents involving uninsured commercial
vehicle.
MR. BANNOCK replied that he didn't have state data, but that
nationally, accidents and injuries involving commercial vehicles
compose less than 5 percent of the total, even including
situations where the commercial vehicle is not at fault.
2:05:33 PM
SENATOR WIELECHOWSKI asked for a summary of any burden incurred
by including commercial vehicles in the bill.
MR. BANNOCK replied that he didn't have a prepared answer, but
that self-insured vehicle information is not readily available
online.
SENATOR COWDERY asked how many drivers without insurance also do
not have a valid license.
MR. BANNOCK replied that he didn't have the number available.
SENATOR OLSON asked how often commercial vehicle accidents cause
the victims to go on social assistance due to injuries or
financial ramifications.
MR. BANNOCK said that he didn't have any related data.
SENATOR OLSON asked if the sponsor had such information.
SENATOR FRENCH said that he couldn't answer the question.
SENATOR OLSON asked how a person proves self-insurance.
MR. BANNOCK said that the matter is addressed in AS 28.10.
CHAIR KOOKESH asked for a suggestion for an appropriate place
for the conceptual amendment.
SENATOR FRENCH suggested language for the amendment, and that it
could be put in section five of the bill.
SENATOR WIELECHOWSKI asked if it was Chair Kookesh's intent to
move the bill that day.
CHAIR KOOKESH replied that he had intended to move the bill, but
that there seemed to be concern about the amendment.
SENATOR FRENCH said that the timeline was at the will of the
committee.
SENATOR OLSON said that commercial vehicles would be encumbered
by being included in the bill's online verification element.
CHAIR KOOKESH said that he didn't have the intention of keeping
the bill in committee.
SENATOR FRENCH commented that the bill does go to another
committee after leaving the Senate Transportation Standing
Committee.
CHAIR KOOKESH replied that he'd like to get the work done in the
current committee.
SENATOR FRENCH repeated the suggested language for the
conceptual amendment.
2:11:23 PM
CHAIR KOOKESH asked if there was further objection to the
amendment.
SENATOR WILKEN said that he maintained his objection.
There was a roll call vote, and Senators Cowdery, Olson,
Wielechowski, and Chair Kookesh voted yes; Senator Wilken voted
no. Therefore, the conceptual amendment to SB 68 passed 4:1.
2:12:21 PM
CHARLES PECCHIO, president of VeriSol Verification Solutions
Incorporated, said that the major issue with the approach to
verifying insurance is that proof can easily be forged or
misrepresented. There have been pilot programs done in several
states with the online approach, which performs real time
verifications; the accuracy is equivalent to calling the
insurance company on the phone. He explained that the existing
system isn't changing with the bill, just becoming more
effective.
He added that less than one half of one percent of commercial
vehicles are uninsured. Commercial vehicles will be included in
the program in the future.
2:17:21 PM
SENATOR COWDERY asked if insurance companies can legally give
out insurance information in response to public inquiry.
MR. PECCHIO replied that the insurance companies provide the
data directly to the state, and it is not made public.
SENATOR COWDERY asked how the situation of cancelled policies is
addressed.
MR. PECCHIO replied that the system can automatically check for
cancelled insurance, and it is updated on a daily basis.
SENATOR COWDERY asked for the cost of the program to the state.
MR. PECCHIO replied that the state would pay a monthly fee
ranging from 1 to 3 cents per vehicle per month.
2:19:54 PM
SENATOR WILKEN remarked that two states are starting full-on
online verification programs, and asked for any others that may
be using it.
MR. PECCHIO replied that Florida was the first state to use the
program, and Wyoming is currently in a pilot stage. Oklahoma and
Texas are getting the program started soon.
SENATOR WILKEN asked if there are any states that have been
operational for at least a year.
MR. PECCHIO replied that the specifications were released only a
year ago.
SENATOR WILKEN asked how the software would work in a
theoretical situation.
MR. PECCHIO explained how the software operates.
SENATOR WILKEN asked for clarification on the use of the
software.
MR. PECCHIO replied in explaining that there are several
different ways of researching a vehicle in the system.
2:24:25 PM
SENATOR WILKEN asked if an active and reliable internet
connection is needed at all times for the system to work
properly.
MR. PECCHIO replied that that was correct. The same sort of
technology is used with credit card verification software.
SENATOR WILKEN replied that many places in the state have uneven
internet access, and asked who else in America offers similar
software.
MR. PECCHIO replied that there are no competitors so far.
2:25:30 PM
SENATOR WIELECHOWSKI asked if the system has ever been hacked or
if any data has ever been lost.
MR. PECCHIO replied that the system has never been hacked, and
the company doesn't maintain any data itself.
2:26:09 PM
SENATOR FRENCH said that the bill includes language that allows
for proof of insurance such as a card, and that the internet
system is just an option. The department and individual officers
will have room for interpretation.
SENATOR OLSON said that some people are suspicious of
questionable or erroneous information, and he wants to make sure
that there won't be any harassment incurred by the bill.
SENATOR FRENCH said he shares the concern.
SENATOR OLSON asked if there's a way to lower premiums through
the action of the bill.
SENATOR FRENCH replied that the objective is to reduce the
number of uninsured drivers, and ideally premiums would be
reduced as a result.
SENATOR WILKEN cautioned against moving the bill too quickly, as
it's a huge policy call that could end badly; more opinions
should be solicited.
CHAIR KOOKESH said that he had previously let the bill sit in
committee for a week.
SENATOR FRENCH commented that he neither pushes nor pulls his
bills.
2:30:49 PM
TOM MCGRATH, representing himself, said that he has worked with
similar bills in the past, and asked the committee to consider
the bill, which is well-crafted. People who do not have
insurance are a costly liability. He related the impact of
uninsured drivers on his business, and encouraged the committee
to move the legislation forward.
2:33:31 PM
KENTON BRINE, Northwest Regional Manager of the Property
Casualty Insurers Association of America (PCIAA), said that he
thinks the bill is now headed in the right direction. He has
been working with Senator French and his aide to improve the
legislation, in the areas of the effective date and terms of use
of the program by the DMV.
He added that more specification should be added in terms of
access to the database. The PCIAA is also interested in the
forms of identifiers to be used; some companies don't provide
Vehicle Identification Numbers (VIN) in their insurance
policies.
He cautioned the committee that there is no perfect system for
getting uninsured drivers off the roads; any crackdown will work
for a certain amount of time, but not forever. Making insurance
as affordable as possible is perhaps the most effective way of
fixing the problem.
2:39:21 PM
SENATOR WIELECHOWSKI asked if the ideal effective date would be
in 2009.
MR. BRINE replied affirmatively.
SENATOR WIELECHOWSKI asked if the sponsor had any comment on the
effective date.
ALLISON BIASTOCK, aide to Senator French, said that the final
bill would include language pertaining to the effective date.
The DMV has said it would be ready earlier than 2009.
SENATOR WIELECHOWSKI asked if the effective date, as currently
written, would be 90 days from signing.
MS. BIASTOCK replied that the DMV would be able to get the
program up and running with the 90-day effective date.
SENATOR OLSON asked if the major difficulty would be getting the
technology in place.
MS. BIASTOCK replied that the program would be using the
existing computer system; it's a matter of getting the software.
SENATOR OLSON said that there's no reason to wait until 2009 to
put the program in place.
2:41:14 PM
CHAIR KOOKESH asked for the will of the committee.
SENATOR COWDERY motioned to report the committee substitute to
SB 68, as amended, from committee with individual
recommendations and accompanying fiscal notes. There being no
objection, CSSB 68(TRA) moved from the Senate Transportation
Committee.
CHAIR KOOKESH asked the sponsor to look at the amendment to make
sure the title would still be appropriate.
There being no further business to come before the committee,
Chair Kookesh adjourned the meeting at 2:42:09 PM.
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