HB 82-RESTRICTED OFF HWY DRIVER'S LICENSE  3:12:35 PM CHAIR KREISS-TOMKINS announced that the next order of business would be HOUSE BILL NO. 82, "An Act relating to vehicle registration; relating to off-road system restricted noncommercial drivers' licenses; relating to off-highway commercial drivers' licenses; relating to off-road system eligible areas; and relating to motor vehicle liability insurance." 3:12:45 PM The committee took a brief at ease at 3:12 p.m. 3:12:51 PM BERETT WILBER, Staff, Representative Kreiss-Tomkins, Alaska State Legislature, presented HB 82 on behalf of Representative Kreiss-Tomkins, prime sponsor. She stated that HB 82 would change the criteria for an individual to be eligible for an off- highway driver's license. She said that under AS 28.15.126, an individual is eligible if his/her community is on a list of communities published by the Division of Motor Vehicles (DMV). She stated that the list consists of off-highway communities without DMV offices, and these communities are exempt from vehicle registration and insurance. She added that DMV publishes this list every year under the insurance exemption statute [AS 28.22.011], and residents of these communities qualify for off-highway driver's licenses. MS. WILBER relayed that in 2014, "traffic count" was added as a new criterion for the list of off-highway communities. She explained that if a rural, off-highway community had a traffic count of greater than 499, it was removed from the list, and residents could no longer qualify for off-highway driver's licenses. She mentioned that five rural communities without access to DMV offices were removed from the list based on this new criterion - Kake, Hoonah, Angoon, Seldovia, and Hyder. She asserted that HB 82 would change statute to ensure that traffic count would no longer determine a community's qualification for the off-highway driver's license, thereby reinstating those five communities to the list of eligible communities. She opined that it is unreasonable and prohibitively expensive for a resident of rural communities to fly to Anchorage or Juneau to get a driver's license and results in people driving illegally. 3:17:06 PM REPRESENTATIVE BIRCH moved to adopt the proposed committee substitute (CS) for HB 82, Version 30-LS0367\D, Martin, 2/27/17, as the working document. REPRESENTATIVE LEDOUX objected for the purpose of discussion. CHAIR KREISS-TOMKINS explained that the CS for HB 82 is the newest iteration of the bill and was developed in close consultation with DMV. REPRESENTATIVE LEDOUX withdrew her objection. There being no further objection, Version D was before the committee. REPRESENTATIVE WOOL asked what criteria was used to qualify a community to be on the list of off-highway communities before the traffic-count criteria. MS. WILBER answered that the criteria was that the community was not connected to the land state highway system and did not have access to a DMV office that offered road testing for a driver's license. REPRESENTATIVE WOOL asked if in the communities that don't require a driver's license, a driver isn't required to have car insurance. MS. WILBER replied that under current statute, a person living in one of the 294 communities that allow off-highway driver's licenses is exempt from registration and insurance. REPRESENTATIVE WOOL asked for clarification that residents of the five communities with a traffic count of over 499 would be exempt from having insurance as well as driver's licenses. He asked if there is an age requirement for drivers not needing driver's licenses and insurance. 3:20:36 PM MS. WILBER pointed out that in none of the communities are you allowed to drive without a license. She explained that the proposed legislation would allow a resident to get an off- highway restricted driver's license - a specific type of driver's license that can be obtained through the mail. She asserted that the intent of HB 91 is to provide a mechanism for rural residents to obtain legal licenses to drive, thus preventing under-age driving. 3:21:34 PM REPRESENTATIVE WOOL asked for clarification that an off-highway driver's license requires paperwork, a written test, the applicant to be a certain age, but not a road test or insurance. He asked if under the proposed legislation, the residents of the five communities having the higher traffic count would have those same requirements. MS. WILBER answered that under current statute, an off-highway restricted driver's license: requires passing a written test; requires verifying identity with DMV; cannot be used outside the country or on the state highway system; and can only be used in an off-highway restricted area. MS. WILBER stated that all communities that are eligible for off-highway driver's licenses are currently exempt from registration and insurance, and that would continue under HB 82. She added that the five communities that would become newly eligible under HB 82 would also be exempt from registration and insurance. REPRESENTATIVE WOOL asked if a community that loses its DMV office through budget cuts would qualify automatically for off- highway driver's licenses. MS. WILBER answered that language in HB 83 states that if a road test is not offered in a community for more than 12 months, the community then becomes eligible for off-highway driver's licenses. She added that this would give DMV 12 months to provide other options for road tests: establish a commissioned agent position in the community; fly a DMV representative into the community; or contract with a third party. 3:26:25 PM MARLA THOMPSON, Director, Division of Motor Vehicles (DMV), Department of Administration (DOA), reiterated that if a community lost DMV services for 12 months, it would be exempt from registration and insurance. 3:27:05 PM MS. WILBER confirmed in response to Representative LeDoux that the five communities that would be affected by HB 83 are Hoonah, Kake, Angoon, Seldovia, and Hyder. REPRESENTATIVE LEDOUX stated that she understands the situation in the villages, but she expressed that Seldovia is a city of substantial size with paved highways. She asked how many people in the five communities are eligible to have a driver's licenses but don't. MS. WILBER mentioned that Seldovia has a population of 255, and the last traffic count study performed in 2007 revealed a highest average daily traffic count of 665. REPRESENTATIVE LEDOUX asked for an explanation of "traffic count." MS. WILBER said that traffic count, also known as average daily traffic (ADT), is one assessment the Department of Transportation & Public Facilities (DOT&PF) uses to determine the classification of roads. She added that it is a count of the number of people who drive over a given segment of road on a given day. REPRESENTATIVE LEDOUX asked if "655" refers to the number of cars driving over a segment of road. MS. WILBER responded yes. She clarified that the number does not refer to the number of individual cars but the number of times over which the traffic count strip has been driven. REPRESENTATIVE LEDOUX asked if the traffic assessment was performed in the summer or winter, since Seldovia is a tourist destination in the summer. MS. WILBER answered that the reason it is called an average daily traffic count is because a statistical analysis is performed on the actual numbers collected to produce a representative count. REPRESENTATIVE LEDOUX asked how long it takes to travel from Seldovia to Homer by ferry. MS. WILBER replied that she didn't know but asserted that having to travel by ferry to obtain a driver's license was an imposition, and a community such as Seldovia should be able to qualify for off-highway driver's licenses. She stated that DMV and DOT&PF personnel have indicated to her that there are off- highway communities that would have traffic counts of over 499, if a traffic count were performed. She mentioned that the communities of Hooper Bay, Sandpoint, King Cove, Selawik, and Togiak, which all have populations significantly larger than the five mentioned in relation to the proposed legislation, would likely have traffic counts over 499. She added that DOT&PF is not likely to do traffic counts in these communities, which is why they have never been removed from the list of off-highway communities. She stated that HB 83 was introduced to protect rural communities that don't have road access to DMVs from being removed from the list of off-highway communities in the event DOT&PF performed a traffic count. She opined that a traffic count is not a good metric for determining qualification for the off-highway driver's license. 3:33:58 PM REPRESENTATIVE JOHNSON offered that Seldovia stands out among the five communities because it has many roads and many people. She also mentioned that communities with ferry access are different from bush communities with just a few miles of road in the middle of nowhere. She added that the Alaska Marine Highway is part of the state's transportation system. MS. WILBER confirmed that all five communities are served by the ferry system. Under HB 83, they would qualify for the off- highway driver's license, because they are not connected [to DMV offices] by land. She offered that it is prohibitive for people in those communities to buy ferry tickets, hotel rooms, and take road tests in an unfamiliar community, just so they can drive in their own community. She opined that even though the communities have access to a DMV office by ferry, the ability of the residents to obtain driver's licenses is impaired. She reiterated that HB 83 would allow them to access legal licenses that other Alaskans access without the expense and time. REPRESENTATIVE JOHNSON pointed out that Hyder is connected to a road system. 3:37:59 PM REPRESENTATIVE KNOPP asked if the age limit for a driver's license applies to an off-highway driver's license. MS. WILBER responded yes, the two are the same. REPRESENTATIVE KNOPP offered that in the summer, there are about 2,000 people in Seldovia; there are not many roads; and it is less than an hour from Homer by ferry. He stated that his concern is regarding the increased summer traffic in Seldovia and the uninsured drivers with off-highway driver's licenses. He asked if the off-highway driver's license system is working well given those drivers are exempt from insurance. MS. THOMPSON responded that currently 1,527 drivers have off- highway restricted licenses. She said that those drivers are not required to pay DMV registration fees or to obtain insurance while driving in the off-highway community. She maintained that if the driver is driving in a community that is not an off- highway community, then the off-highway driver's license becomes a de facto permit, and the driver needs a regular driver's license or must be accompanied by someone with a regular driver's license. She mentioned that the number of off-highway driver's licenses is small due to the restrictions on them. 3:43:11 PM REPRESENTATIVE KNOPP reiterated his concern is about local young people driving around Seldovia with off-highway driver's licenses and no insurance. He asserted that every other driver is required to maintain insurance, and a visitor to Seldovia could be a victim of an uninsured driver. 3:44:10 PM AUDREY O'BRIEN, Driver Services - Juneau, Division of Motor Vehicles (DMV), Department of Administration (DOA), confirmed that for a person in Seldovia with an off-highway driver's license, insurance is optional, and a visitor to Seldovia could be at risk of a collision with an uninsured driver. CHAIR KREISS-TOMKINS offered a scenario: Someone from Valdez travels to Tatitlek or King Cove, both of which have ferry service and are off-highway eligible communities. The visitor, who does have insurance, gets T-boned by an uninsured Tatitlek or King Cove driver. Representative Kreiss-Tomkins asked, "What happens to the insured driver who just got hit by the uninsured driver?" MS. O'BRIEN replied that in that situation, the driver does not face a license suspension as would a driver "on-system" because insurance is not required for the off-highway driver. She went on to say that there still could be an application of financial responsibility for the off-highway driver depending on who is at fault. 3:47:43 PM REPRESENTATIVE BIRCH asked if the roads in the off-highway communities are publicly constructed roads or private roads. MS. O'BRIEN conjectured that these communities have a combination of public and private roads. REPRESENTATIVE BIRCH asked if it is reasonable to permit drivers with no registration or insurance on public roads. CHAIR KREISS-TOMKINS asked what the insurance implications would be for the insured driver in the scenario he offered. MS. O'BRIEN responded that depending on the insured driver's coverage, damages for which he/she was responsible could be reimbursed, and damages caused by the uninsured driver could be reimbursed under uninsured motorist coverage. If the insured driver did not have uninsured motorist coverage, he/she may have to pay for the damages caused by the uninsured driver or seek compensation by other means. 3:51:24 PM REPRESENTATIVE LEDOUX asked how many people in the five off- highway communities would be affected by HB 83 because they are eligible for a driver's license and have a vehicle but don't have a regular driver's license. She opined that many people travel out of Seldovia for services. MS. O'BRIEN answered that she doesn't have that number. She said she could attempt to get that information but would not know who chose not to have a driver's license. REPRESENTATIVE LEDOUX asked if people with driving violations, such as driving under the influence (DUI), can get off-highway driver's licenses. MS. O'BRIEN answered that the only difference between the off- highway driver's license and the regular license is that the former does not require a road test. She maintained that all other licensing criteria that applies to a regular driver's license applies to an off-highway driver's license. She stated that if driving privileges have been revoked for an individual, he/she would not have off-highway driving privileges. She added, however, that a court-ordered requirement for an ignition interlock device is forgiven in the off-highway listed communities. REPRESENTATIVE LEDOUX asked what the rationale was for not requiring insurance. MS. O'BRIEN replied that her understanding was that back in 1986, when this was enacted, traffic in those areas was so low that there was very little risk. 3:55:46 PM REPRESENTATIVE TUCK suggested that the explanation for allowing uninsured drivers might be because insurance companies don't insure unlicensed drivers. MS. O'BRIEN responded that her contact with insurance companies suggests to her they are unfamiliar with off-highway driver's licenses. REPRESENTATIVE TUCK asked if commercial driver's licenses still would be required in the off-highway communities. MS. O'BRIEN answered that HB 83 would not change the criteria for commercial licensing in off-highway communities. She added that there is a restriction for commercial licenses based on the size of the community, which is an exemption applied to Alaska under federal law. REPRESENTATIVE TUCK asked for clarification that HB 83 would require the off-highway communities to be listed in statute. MS. O'BRIEN responded that DMV publishes a list of off-highway communities, and HB 83 would change the criteria for communities to be on the list. 3:58:53 PM REPRESENTATIVE KNOPP expressed his concern for people who are unaware of off-highway driver's licenses being in an area not requiring liability insurance policies. He stated that most people have an uninsured/underinsured provision on their insurance policy. He asked if that provision would protect the insured driver in the event of a collision with an uninsured driver. MS. O'BRIEN stated that she is not aware of any clause that would render the insurance policy invalid in the off-highway community. REPRESENTATIVE KNOPP offered that the intent of the uninsured/underinsured provision is to protect the insured driver. 4:01:12 PM REPRESENTATIVE JOHNSON asked if the off-highway driver's license communities have resident law enforcement officers. MS. WILBER answered that in speaking with Department of Public Safety (DPS) personnel, three of the communities addressed by HB 83 have police departments. CHAIR KREISS-TOMKINS offered his belief that Kake and Angoon have Village Public Safety Officers (VPSOs); Hoonah has a municipal police department; Seldovia has a municipal police department; and Hyder does not have a municipal police department. 4:02:43 PM REPRESENTATIVE JOHNSON asked if the off-highway driver's license would qualify as a "REAL ID." MS. Thompson answered no, it would not qualify as a REAL ID. In response to a previous question on the number of registrations per city, she offered that there is a total of 2,752 vehicles registered with the breakdown as follows: Angoon with 264; Hoonah with 993; Kake with 374; and Seldovia with 1,119. MS. THOMPSON, in response to Representative Wool, confirmed there were 1,527 individuals with off-highway driver's licenses. She clarified that the people in the four communities currently have regular driver's licenses. REPRESENTATIVE WOOL opined that a town with a thousand vehicles does not constitute light road traffic. He offered that in the case of Seldovia, accessing a DMV office entails a short ferry ride and is not much of a burden. He mentioned that Hyder is connected to the road system. He said that he is interested in the number of cars traveling to Homer from Seldovia in the summer. 4:07:23 PM REPRESENTATIVE LEDOUX stated that she agrees with Representative Wool. She opined, however, that some of the other communities on the off-highway list might also have a high traffic count, and it is unfair to exclude these five communities based on high traffic count, when other communities on the list might also have high traffic count. She suggested that instead of including these five communities on the list, an equally reasonable solution might be to consider excluding the other communities with high traffic count. REPRESENTATIVE TUCK asked if the ADT count was removed as a criterion, the only other way to remove a community from the list of exemptions would be to open a DMV office in the community. MS. THOMPSON answered yes. There would have to be a road test available in the community, either through a DMV office, a business partner, or a commissioned agent. REPRESENTATIVE TUCK asked Ms. Thompson to provide information to the committee identifying the community with the smallest ADT count that has a DMV office. 4:09:57 PM REPRESENTATIVE BIRCH referred to the financial implication of HB 83 and asked if vehicle registration fees would be required in these five communities. MS. THOMPSON responded that there would not be registration fees, but many of these communities already have permanent registration available. She offered to provide the committee with information on the estimated loss of revenue. REPRESENTATIVE WOOL asked how DMV knows how many vehicles there are if they are unregistered. 4:11:31 PM CHAIR KREISS-TOMKINS reiterated that many of the people in the five communities have regular licenses, and just a few have the off-highway restricted license, such as elders and people who never leave the village. [HB 82 was held over.]