03/21/2013 01:30 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB56 | |
| HB46 | |
| SB13 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 13 | TELECONFERENCED | |
| += | HB 46 | TELECONFERENCED | |
| += | HB 56 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
March 21, 2013
1:32 p.m.
MEMBERS PRESENT
Senator Dennis Egan, Chair
Senator Fred Dyson, Vice Chair
Senator Anna Fairclough
Senator Click Bishop
Senator Hollis French
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 56
"An Act excluding motorcycles and motor-driven cycles from the
passenger vehicle rental tax; and providing for an effective
date."
- MOVED HB 56 OUT OF COMMITTEE
HOUSE BILL NO. 46
"An Act relating to regulations adopted by the Department of
Administration waiving the commercial motor vehicle driving
skills test for certain drivers with military commercial motor
vehicle experience."
- MOVED HB 46 OUT OF COMMITTEE
SENATE BILL NO. 13
"An Act relating to bonds of the Knik Arm Bridge and Toll
Authority; relating to reserve funds of the authority; relating
to taxes and assessments on a person that is a party to an
agreement with the authority; and establishing the Knik Arm
Crossing fund."
- MOVED SB 13 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 56
SHORT TITLE: PASSENGER VEHICLE RENTAL TAX
SPONSOR(s): REPRESENTATIVE(s) HOLMES, T.WILSON
01/16/13 (H) PREFILE RELEASED 1/11/13
01/16/13 (H) READ THE FIRST TIME - REFERRALS
01/16/13 (H) TRA, FIN
02/19/13 (H) TRA AT 1:00 PM BARNES 124
02/19/13 (H) Moved Out of Committee
02/19/13 (H) MINUTE(TRA)
02/20/13 (H) TRA RPT 5DP 1NR
02/20/13 (H) DP: LYNN, JOHNSON, GATTIS, ISAACSON,
P.WILSON
02/20/13 (H) NR: KREISS-TOMKINS
02/28/13 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/28/13 (H) Moved Out of Committee
02/28/13 (H) MINUTE(FIN)
03/01/13 (H) FIN RPT 8DP 1NR
03/01/13 (H) DP: COSTELLO, GARA, KAWASAKI, HOLMES,
MUNOZ, T.WILSON, THOMPSON, STOLTZE
03/01/13 (H) NR: AUSTERMAN
03/05/13 (H) TRANSMITTED TO (S)
03/05/13 (H) VERSION: HB 56
03/11/13 (S) READ THE FIRST TIME - REFERRALS
03/11/13 (S) TRA, FIN
03/19/13 (S) TRA AT 1:30 PM BUTROVICH 205
03/19/13 (S) -- Meeting Postponed to 3/21/13 --
03/21/13 (S) TRA AT 1:30 PM BUTROVICH 205
BILL: HB 46
SHORT TITLE: WAIVE CDL SKILL TEST FOR CERTAIN VETERANS
SPONSOR(s): REPRESENTATIVE(s) SADDLER
01/16/13 (H) PREFILE RELEASED 1/7/13
01/16/13 (H) READ THE FIRST TIME - REFERRALS
01/16/13 (H) STA, TRA
02/12/13 (H) STA AT 8:00 AM CAPITOL 106
02/12/13 (H) Moved Out of Committee
02/12/13 (H) MINUTE(STA)
02/13/13 (H) STA RPT 6DP
02/13/13 (H) DP: HUGHES, ISAACSON, KREISS-TOMKINS,
GATTIS, KELLER, LYNN
02/19/13 (H) TRA AT 1:00 PM BARNES 124
02/19/13 (H) Moved Out of Committee
02/19/13 (H) MINUTE(TRA)
02/20/13 (H) TRA RPT 6DP
02/20/13 (H) DP: LYNN, JOHNSON, KREISS-TOMKINS,
GATTIS, ISAACSON, P.WILSON
03/01/13 (H) TRANSMITTED TO (S)
03/01/13 (H) VERSION: HB 46
03/04/13 (S) READ THE FIRST TIME - REFERRALS
03/04/13 (S) STA, TRA
03/12/13 (S) STA AT 9:00 AM BUTROVICH 205
03/12/13 (S) Moved HB 46 Out of Committee
03/12/13 (S) MINUTE(STA)
03/13/13 (S) STA RPT 5DP
03/13/13 (S) DP: DYSON, WIELECHOWSKI, COGHILL,
GIESSEL, STEDMAN
03/19/13 (S) TRA AT 1:30 PM BUTROVICH 205
03/19/13 (S) -- Meeting Postponed to 3/21/13 --
03/21/13 (S) TRA AT 1:30 PM BUTROVICH 205
BILL: SB 13
SHORT TITLE: KNIK ARM BRIDGE AND TOLL AUTHORITY
SPONSOR(s): SENATOR(s) HUGGINS
01/16/13 (S) PREFILE RELEASED 1/11/13
01/16/13 (S) READ THE FIRST TIME - REFERRALS
01/16/13 (S) TRA, FIN
03/14/13 (S) TRA AT 1:30 PM BUTROVICH 205
03/14/13 (S) Heard & Held
03/14/13 (S) MINUTE(TRA)
03/21/13 (S) TRA AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
REPRESENTATIVE LINDSAY HOLMES
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 56.
NANCY HULL
Alaska Motorcycle Adventure
Anchorage, Alaska
POSITION STATEMENT: Testified in favor of HB 56
JOHANNA BALES, Deputy Director
Tax Division
Department of Revenue
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to HB 56.
REPRESENTATIVE DAN SADDLER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 46.
MARC SAN SOUCI, Regional Liaison
U.S. Department of Defense
Tacoma, Washington
POSITION STATEMENT: Expressed support for HB 46.
LAWRENCE BETHEL, Pacific Region President
U.S. Army
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 46.
AVES THOMPSON, Executive Director
Alaska Trucking Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 46.
AMY ERICKSON, Director
Division of Motor Vehicles
Department of Administration
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 46.
SENATOR CHARLIE HUGGINS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 13.
TOM BRICE, Lobbyist
Alaska District Council of Labors
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 13.
PAUL GROSSI, Lobbyist
Ironworkers Union
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 13.
JODY SIMPSON, Staff
Senator Charlie Huggins
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Responded to questions on SB 13.
ACTION NARRATIVE
1:32:12 PM
CHAIR DENNIS EGAN called the Senate Transportation Standing
Committee meeting to order at 1:32 p.m. Present at the call to
order were Senators Dyson, Fairclough, French, and Chair Egan.
HB 56-PASSENGER VEHICLE RENTAL TAX
1:33:38 PM
CHAIR EGAN announced that the first order of business would be
HB 56.
REPRESENTATIVE LINDSAY HOLMES, sponsor of HB 56, gave a brief
overview of the bill that tries to help some of the small
businesses in the state that rent motorcycles who are currently
subject to a 10 percent rental tax. She explained that back in
2003 when the tax was passed there was no discussion about it
and it wasn't clear whether motorcycles fell into the category
of "passenger vehicle." The Department of Revenue didn't even
realize until 2008 that there even were companies in the state
that were renting motorcycles and when they did subjected them
to the 10 percent tax.
Because of the climate in Alaska motorcycles are only rented
about 90 days out of the year and need to be stored the rest of
the time. The average cost to rent one is $180-$210 day.
Packages are sold to bring people up to ride motorcycles around
the state and when they do, they stay in hotels, eat in
restaurants and spend money. This bill would exempt motorcycles
from the definition of "passenger vehicles" thereby exempting
them from the tax.
CHAIR EGAN noted a letter from Alaska Motorcycle Adventures in
their packets.
NANCY HULL, Alaska Motorcycle Adventures, said they rent their
motorcycles from the Anchorage area, and 2013 will be their 20th
season there. She supported HB 56, because the rental tax
affects both motorcycle rentals and Alaska tourism in general.
To offset the high vehicle rental tax, her customers choose to
rent for fewer days or choose to go somewhere else on the
planet. The season of 90 days is very limited, and their rental
rates are extremely high. She urged them to get these people to
Alaska and send them to McCarthy and Chicken where they spend
their tourist dollars in locally owned businesses.
She added that she heard someone in Whitehorse was going to
start renting motorcycles again, and with the number of
Europeans coming over from Frankfurt it would be real easy for
them to get off in Whitehorse rather than continuing on to
Anchorage. As soon as there is a rental company in Whitehorse
they will definitely go for the best motorcycle rate or the
lowest cost they can get, and that would mean a lot fewer
dollars for the Alaska tourist economy. She would rather that
they land here first and then go to the Yukon, so the dollars
stay here.
1:40:44 PM
SENATOR DYSON asked if Canadian businesses face any different
rules for renting motorcycles.
MS. HULL said yes and explained that Canadians can rent in
Alaska but they are not allowed to take rented vehicles back
into Canada.
SENATOR DYSON said people will get off the boat in Anchorage,
fly to Whitehorse and rent an RV and come back and get the rest
of their family.
MS. HULL said law applies to any rented vehicle of any type.
MS. HULL said that some customers have asked her for a non-
logoed motorcycle that they take to the boarder and just hope
they will be able to go through as if it's a friend's
motorcycle.
SENATOR FRENCH asked Ms. Bales to comment on the relatively
modest fiscal note.
1:44:32 PM
JOHANNA BALES, Deputy Director, Tax Division, Alaska Department
of Revenue, said when the original vehicle rental tax was
passed, motorcycle rentals weren't recognized; once that was
discovered they spoke with the Department of Law who said that
motorcycles do fall under the definition of a "passenger
vehicle." So they reached out to the companies and brought them
into compliance. Based on most other taxes the state brings in,
this is fairly insignificant and is a bit difficult for the
rental car companies. They have no official opinion on the bill,
but at the same time they want to provide as much information as
they can and believe it is an "immaterial amount of revenue."
SENATOR BISHOP joined the committee.
SENATOR DYSON moved to report HB 56 from committee with
individual recommendations and attached fiscal note(s). There
being no objection, the motion carried.
1:47:08 PM
At ease from 1:47 to 1:48 p.m.
HB 46-WAIVE CDL SKILL TEST FOR CERTAIN VETERANS
1:48:38 PM
CHAIR EGAN brought the meeting back to order and announced the
hearing of HB 46.
REPRESENTATIVE DAN SADDLER, sponsor of HB 46, introduced the
bill. He said Alaskans who have honed their driving skills in
service to our country in uniform deserve to have their
experience validated and respected in the civilian world. HB 46
helps recent Alaskan veterans get jobs and helps Alaska
businesses get qualified drivers by acknowledging military
drivers already have safe driving skills.
He said that about 63,000 service members had military jobs
involving truck driving in most recent years and it is one of
the top specialties in the armed services. Many of the
industries in Alaska - tourism, construction, oil field work,
retail - require drivers to have a commercial driver's license
(CDL). Recent federal law allows states to waive the road skills
test for the CDL if military drivers have recent driving
experience and a clean driving record. They, of course, must
still pass the knowledge test, the division test and the
physical test.
The federal Motor Carrier Safety Administration is encouraging
states to allow such waivers. As of January 9, 2013, 34 states
have waived the test for military and 10 other states are
working on such waivers and 7 do not current accept the waivers.
HB 46 directs the Department of Administration to adopt
regulations in accordance with the federal standards to allow
the State of Alaska to issue such waivers. HB 46 means jobs for
Alaska veterans and qualified drivers for Alaska businesses.
CHAIR EGAN opened public testimony.
1:51:14 PM
MARC SAN SOUCI, Regional Liaison, U.S. Department of Defense,
expressed support for HB 46. He said in the past couple of years
25 states had enacted new laws to help grant our veterans credit
towards licensing in occupations such as the CDL. The heavy and
tractor trailer driving career field in the military is in the
top ten of all occupations specialties in all of the military
and the second highest occupation in the Army and the Marines.
The Department of Labor and Occupational Network online
partnership forecasts the truck driving field as one of the
brightest outlook fields with a faster than average job growth
rate of 20-28 percent over the next 10 years.
He also pointed out that the military training has already been
paid for by our tax dollars. There will be almost 1 million new
veterans by 2016.
1:53:23 PM
LAWRENCE BETHEL, Pacific Region President, Association U.S.
Army, supported HB 46. Thirty-four other states have provided
this waiver to the military. Most typically they have
substituted two years of commercial motor vehicle safe driving
in the military for the skills test and apply this rule up to 90
days after separation from active duty for Guard Reserve or the
Coast Guard.
He said the military in Alaska separates anywhere from 250-300
veterans per month, mostly at Joint Base Elmendorf Richardson
(JBER). Typically 10 to 20 percent of veterans intend to remain
in Alaska. Their reasons include veteran friendly residents and
benefits, great job opportunities, great fishing and winter fun,
and a family friendly environment with good schools, low crime
and a clean environment. About 22 of those JBER soldiers per
month have achieved their Army driver's badge and many of them
are combat soldiers.
In general, Alaska law requires CDLs on operating vehicles in
excess of 2,600 pounds and those transporting hazardous
materials or when operating vehicles with 16 or more passengers.
Waiver of the CDL road test for qualifying military in Alaska
will assist them in numerous ways. It offers well-paid
employment in a growing career field across the country. Service
members will be able to feel secure in their career choice. This
career in Alaska pays well with a median average hourly rate of
$24.23, per US Department of Labor 2011 figures. It is also an
attractive part-time work option for military who are completing
degrees or certifications.
Further, this legislation honors veterans' selfless service to
the country and their considerable experience operating and
maintaining a variety of complex vehicles from 13-ton light
transports to fuel trucks on highways and diesels trucks with
highly technical equipment, some of which is valued in excess of
$2 million. Most veterans already have considerable driving
experience over remote roads to and from ranges, missile defense
sites and exercise or deployments involving ports, runways and
railroads. Many service members have the army drivers' badge.
This badge requires a government driver's license and 8,000
miles of 12-month of accident-free driving with no traffic
violations as well as approval by a lieutenant colonel or above.
The road test waiver provides a faster less-expensive route to
employment and decreases transition stress for the family. It
requires testing in a large vehicle, which soldiers do not have,
or enrollment in a 4-hour $500 or a $1,000 10-hour commercial
driving program. Current training programs have a wait list.
Alaskan employers greatly benefit from military hires who have
this extensive experience operating in underdeveloped and
hostile locations. In addition, service members are self-
disciplined, sensitized to continue to operate as a team with a
safety focus, think on their feet and apply good judgment, and
understand corporate policy's chain of command and the
importance of good communication.
He summarized that Alaska benefits by retaining more veterans
and adding them to the workforce as well as maintaining its
reputation as one of the most supportive states for veterans.
This legislation is a win/win for all parties. He concluded that
Alaska veterans are 16.2 percent of the state's population,
number one in the country per capita. With about 722,000
residents in 2011 that means we have about 117,000 residents
that are veterans.
1:58:58 PM
SENATOR DYSON noted that Representative Saddler represents Eagle
River with the highest number of military in the state-north of
25 percent. He shares the honor of representing that district
and they are amongst the best citizens in the state to
represent. He thanked Mr. Bethel for his work.
2:00:05 PM
AVES THOMPSON, Executive Director, Alaska Trucking Association,
said the association represents nearly 200 companies that
support HB 46. As an industry they welcome returning veterans
and appreciate this opportunity to do something in their
support. These men and women have had some of the best truck
driver training available and will also have a good deal of
recent hands-on experience in driving big rigs. With the proper
certifications as to a veteran's experience the association
supported waiving the skills test for the issuance of a CDL. He
was a veteran himself and was proud to support HB 46.
2:01:26 PM
AMY ERICKSON, Director, Division of Motor Vehicles, Department
of Administration, testified in support of HB 46 saying they
would have to fashion regulations to allow this to happen.
SENATOR DYSON moved to report HB 46 from committee to the next
committee of referral with individual recommendations and
attached fiscal note(s). There being no objection, the motion
carried.
2:02:20 PM
At ease from 2:202 to 2:03 p.m.
SB 13-KNIK ARM BRIDGE AND TOLL AUTHORITY
2:03:43 PM
CHAIR EGAN announced that the final order of business would be
SB 13.
SENATOR CHARLIE HUGGINS, sponsor of SB 13, introduced the bill.
He noted that the MatSu has over 50 percent of the highway
safety corridors in the state that have safety problems due to
congested traffic that starts at 4:00 a.m. when an avalanche of
vehicles heads for Anchorage. The infrastructure in SB 13
provides an avenue to start impacting some of those highway
safety corridors. He said that when tourists arrive that
increases the traffic headed up to Denali through these highway
safety corridors.
He said if you live in Anchorage right now, big trucks haul
things from the Port of Anchorage and with this infrastructure
in place they will not have to drive through Anchorage.
CHAIR EGAN opened public testimony.
TOM BRICE, Lobbyist, Alaska District Council of Labors,
testified in support of SB 13.
2:09:14 PM
PAUL GROSSI, Lobbyist, Ironworkers Union, testified in support
of SB 13. He said building the bridge would promote jobs and
lead to more development. He related a story about how one their
business manager who lives in Wasilla got caught in an eight-
hour traffic jam.
SENATOR DYSON said the eight-hour traffic jam was caused by a
fugitive the police were chasing. He ran over a tack strap the
Troopers put out and set his car on fire in one set of lanes;
then got in a gun fight and went over in the other two lanes and
died, so all four lanes - some 40,000 vehicles - were plugged
for eight and a half hours. There was significant economic loss
and a whole bunch of very human issues including a shortage of
toilet paper. It shows in the exception how much having only one
route out of town can be a real problem. It's one of the many
reasons they support this project.
2:11:46 PM
SENATOR FRENCH asked if the administration supported the bill.
JODY SIMPSON, staff, Senator Charlie Huggins, said she didn't
know if the administration supports the bill.
SENATOR DYSON noted that the administration had been very
enthusiastic about the whole process and was disappointed when
funding didn't go through last year.
MS. SIMPSON added that the governor's budget has a $10 million
item in it for this project.
SENATOR DYSON SENATOR moved to report SB 13 from committee to
the next committee of referral with individual recommendations
and attached fiscal note. There being no objection, the motion
carried.
2:13:42 PM
At ease from 2:13 to 2:15 p.m.
2:15:00 PM
There being no further business to come before the committee,
Chair Egan adjourned the Senate Transportation Standing
Committee at 2:15 p.m.
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