02/07/2013 01:00 PM House TRANSPORTATION

          HB 15-COMMERCIAL MOTOR VEHICLE REQUIREMENTS                                                                       
                                                                                                                              
1:41:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE  announced that the final  order of business                                                               
would be HOUSE BILL NO. 15,  "An Act relating to commercial motor                                                               
vehicle requirements."                                                                                                          
                                                                                                                                
The committee took an at-ease from 1:41 p.m. to 1:42 p.m.                                                                       
                                                                                                                                
1:42:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    WES   KELLER,    Alaska   State    Legislature,                                                               
characterized  HB  15  as  a  pro-business bill.    He  said  the                                                               
National Federation of Independent  Businesses (NFIB), the Alaska                                                               
Trucking   Association,   the   DMV,  and   the   Department   of                                                               
Transportation &  Public Facilities  (DOT&PF) like  the bill.   A                                                               
similar bill nearly passed the  legislature last year and that HB
 is a good bill with lots of  support.  He stated that the bill                                                               
would reduce some  regulations to a certain category  of trucks -                                                               
the one-ton  truck, the 35  series, the 350 series,  3500 series,                                                               
and small step vans.  This  bill would remove these vehicles from                                                               
being defined  as commercial vehicles  and it would  increase the                                                               
gross  vehicle weight  rating (GVWR)  restriction from  10,000 to                                                               
14,000 pounds.                                                                                                                  
                                                                                                                                
1:45:13 PM                                                                                                                    
                                                                                                                                
JIM  POUND,  Staff,  Representative   Wes  Keller,  Alaska  State                                                               
Legislature, on behalf of the  bill sponsor, reiterated that this                                                               
bill  would  update  Alaska's  statutes.   In  1999,  when  these                                                               
statutes were  written, one-ton pickups  were lighter  in weight.                                                               
He  reiterated  that  increasing   the  weight  requirements  for                                                               
commercial  vehicles  will  remove one-ton  pickups  and  similar                                                               
vehicles from the category of  commercial vehicles.  He explained                                                               
that   commercial  vehicle   drivers  are   subject  to   certain                                                               
requirements,   including   testing,   insurance,   and   medical                                                               
requirements,  such  as obtaining  annual  exams.   For  example,                                                               
commercial  drivers   currently  operate  pilot  vehicles.     He                                                               
recalled one letter  in members' packets indicated  that the bill                                                               
may  also reduce  wear and  tear on  roads since  a one-ton  dual                                                               
wheel vehicle  has less impact on  roads than a single  rear axle                                                               
vehicle does.                                                                                                                   
                                                                                                                                
1:46:45 PM                                                                                                                    
                                                                                                                                
MR. POUND  referred to Section 1  of HB 15, which  would amend AS                                                               
19.10.060  and   primarily  relates   to  insurance   and  limits                                                               
insurance  necessary  to  operate  a  vehicle  less  than  14,000                                                               
pounds.   Section 2 would  eliminate duplicate language  found in                                                               
state and  federal regulations, noting  the DOT&PF  could address                                                               
this  in  more  detail.     He  stated  that  Section  3  defines                                                               
commercial motor vehicles.                                                                                                      
                                                                                                                                
1:47:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE asked whether  the change would increase the                                                               
limit for commercial vehicles from 10,000 to 14,000 pounds.                                                                     
                                                                                                                                
MR. POUND  answered yes.   In further  response, he  responded he                                                               
understood  that  10,000  pounds  was  standard  was  adopted  to                                                               
correspond to a  one-ton truck but over the  years these vehicles                                                               
have gotten heavier and larger.                                                                                                 
                                                                                                                                
1:48:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTIS disclosed  she  uses a  one-ton truck  and                                                               
also a one-ton  snowplow.  She asked whether he  could speak to a                                                               
farm or agricultural exemption.                                                                                                 
                                                                                                                                
MR.  POUND answered  that  farm vehicles  are  exempt in  another                                                               
section  of  statutes  and  farm   vehicles  are  not  considered                                                               
commercial vehicles in terms of this bill.                                                                                      
                                                                                                                                
1:49:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE referred  to page 2, line 7, and  to page 3,                                                               
line 4 of the  bill.  He asked the reason  to delete the language                                                               
related to transport of hazardous material.                                                                                     
                                                                                                                                
MR. POUND understood it was  duplicate language between the state                                                               
and federal language  and is not needed.  In  further response to                                                               
a question he agreed it was duplicative language.                                                                               
                                                                                                                                
REPRESENTATIVE FEIGE  asked whether  drivers operating  a vehicle                                                               
for  commercial purposes  to transport  hazardous materials  must                                                               
comply  with  federal   law  in  terms  of   placards  and  other                                                               
requirements.                                                                                                                   
                                                                                                                                
MR.  POUND   answered  yes,  that  is   his  understanding  since                                                               
hazardous materials transport falls under federal requirements.                                                                 
                                                                                                                                
1:50:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE   asked  whether  someone  could   get  the                                                               
impression   the  state   doesn't  regulate   hazardous  material                                                               
transportation.                                                                                                                 
                                                                                                                                
MR. POUND  answered that hazardous  materials is under  the total                                                               
control of the  federal government.  He surmised  the court would                                                               
say ignorance is not an excuse  if someone were to read the state                                                               
statutes   and  interpret   [that  transportation   of  hazardous                                                               
materials was unregulated].                                                                                                     
                                                                                                                                
1:51:00 PM                                                                                                                    
                                                                                                                                
REX  YOUNG,  Chief,  Commercial  Vehicle  Enforcement,  Anchorage                                                               
Office, Division  of Measurement  Standards &  Commercial Vehicle                                                               
Enforcement(MSCVE),   Department  of   Transportation  &   Public                                                               
Facilities (DOT&PF), introduced himself.                                                                                        
                                                                                                                                
1:51:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE  asked  whether   the  department  has  any                                                               
opposition to the bill.                                                                                                         
                                                                                                                                
MR. YOUNG answered  that HB 15 is an excellent  idea.  Currently,                                                               
a  person  under  19  years  of age  cannot  drive  a  commercial                                                               
vehicle, yet  this type of vehicle  can be driven with  a class B                                                               
drivers'  license.    Therefore, classifying  these  vehicles  as                                                               
commercial vehicles will keep a  contractor's son from being able                                                               
to get into the business.                                                                                                       
                                                                                                                                
1:52:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  referred to page  1, line 8-10 of  HB 15,                                                               
to the deleted  language, which read, "AND THAT  ARE NECESSARY TO                                                               
AVOID LOSS OR  WITHHOLDING OF FEDERAL HIGHWAY MONEY]."   He asked                                                               
whether this causes any problems for the department.                                                                            
                                                                                                                                
MR. YOUNG answered  no.  He said the state  has been sued several                                                               
times, that the current language  is contradictory to other parts                                                               
of AS  19, in which  the DOT&PF  can write regulations  to manage                                                               
and  control the  highways.   He  explained that  people use  the                                                               
aforementioned  language  as an  argument  in  court to  say  the                                                               
DOT&PF has  too many  regulations.  He  related it  has literally                                                               
cost the department hundreds of thousands of dollars.                                                                           
                                                                                                                                
1:53:20 PM                                                                                                                    
                                                                                                                                
DAN SMITH,  Director, Anchorage  Office, Division  of Measurement                                                               
Standards  & Commercial  Vehicle Enforcement  (MSCVE), Department                                                               
of Transportation  & Public Facilities (DOT&PF),  stated that the                                                               
division  supports  changing  the   definition  of  a  commercial                                                               
vehicle from  10,000 to 14,000  pounds.  The change  would remove                                                               
the regulatory  burden on businesses  that have  been categorized                                                               
as carriers  operating commercial  motor vehicles.   He explained                                                               
that  vehicles have  gotten larger  and incidental  use of  these                                                               
vehicles or combination of vehicles  over 10,000 pounds now meets                                                               
the  definition of  a commercial  vehicle.   He urged  members to                                                               
support HB 15.                                                                                                                  
                                                                                                                                
1:54:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON asked about combination of vehicles.                                                                     
                                                                                                                                
MR. SMITH  responded an  officer must determine  if a  vehicle is                                                               
commercial vehicle  or a  non-commercial vehicle  for enforcement                                                               
purposes.   Thus, either the  gross vehicle weight  rating (GVWR)                                                               
or the combination of both vehicles  when a vehicle is coupled to                                                               
another vehicle is used to make that determination.                                                                             
                                                                                                                                
1:55:28 PM                                                                                                                    
                                                                                                                                
AVES THOMPSON,  Executive Director, Alaska  Trucking Association,                                                               
Inc.  (ATA)  stated that  the  ATA  is a  statewide  organization                                                               
representing  the interests  of its  nearly 200  member companies                                                               
from  Barrow  to  Ketchikan.    He  said  that  freight  movement                                                               
represents a large  chunk of Alaska's economy and  impacts all of                                                               
us each and every day.  He  also said, "The simple truth is, that                                                               
if  you got  it a  truck  brought it."   As  vehicles have  grown                                                               
larger  they now  fall into  the definition  of intrastate  motor                                                               
vehicles that  have historically  not been  considered commercial                                                               
vehicles, such as pickup trucks,  small step vans, small trailers                                                               
and  other  similar vehicles.    He  reported  one of  the  ATA's                                                               
legislative priorities  is to change the  statutory definition of                                                               
an intrastate commercial vehicle  to reduce the regulatory burden                                                               
on  small business  and HB  15 accomplishes  that purpose.   This                                                               
bill would  raise the weight  threshold on  intrastate commercial                                                               
vehicles  from  10,000  to 14,000  pounds  gross  vehicle  weight                                                               
rating  (GVWR)   for  the  purpose  of   vehicle  regulation  and                                                               
inspection.                                                                                                                     
                                                                                                                                
MR.  THOMPSON said  this change  would  assist small  contractor,                                                               
carpenters, service  providers, and  small delivery  vehicles and                                                               
pilot cars.   In fact, pickup  trucks and small vans  are getting                                                               
larger  and heavier  and are  bumping  up over  the 10,000  GVWR,                                                               
becoming by  definition a commercial  vehicle for  inspection and                                                               
safety regulation  purposes.  He  referred to photos  provided in                                                               
members' packets.  He identified  pilot cars as the vehicles that                                                               
accompany oversize loads to serve  as an extension of the warning                                                               
system for  the oversize  load.  He  emphasized these  pilot cars                                                               
are  almost always  used in  intrastate commerce  and would  fall                                                               
under this bill.                                                                                                                
                                                                                                                                
MR. THOMPSON informed members that  when a vehicle is over 10,000                                                               
pounds the  driver must obtain a  biannual medical certification,                                                               
complete  daily   vehicle  inspection  reports,   perform  annual                                                               
inspections, stop at  all open weigh stations, and  be subject to                                                               
roadside inspections.   Additionally, the employer  must maintain                                                               
a set of driver qualification  files and submit annual updates to                                                               
the DOT&PF  to ensure  compliance.  He  stated vehicles  over the                                                               
10,000 GVWR  are subject  to federal  regulations that  have been                                                               
adopted into  the Alaska administrative  code.  Passage of  HB 15                                                               
would exclude  vehicles that  are no more  than 14,000  GVWR from                                                               
unnecessary   regulation;  however   it  does   not  change   the                                                               
commercial  status   of  intrastate  vehicles  for   purposes  of                                                               
registration with the DMV.  Therefore  HB 15 has no fiscal impact                                                               
on the state.   He offered his belief these  vehicles - 10,000 to                                                               
14,000 GVWR  - do not  need this  level of scrutiny  as typically                                                               
these vehicles  are operated in  a limited geographical  area and                                                               
are not  subject to  wear and tear  that other  larger commercial                                                               
vehicles experience.  He concluded  that the ATA urges members to                                                               
act favorably on this bill.                                                                                                     
                                                                                                                                
1:59:04 PM                                                                                                                    
                                                                                                                                
MIKE MOELLER,  Director, Trucking,  CPD ALASKA LLC  (CPD Alaska),                                                               
stated  that  CPD  Alaska,   the  petroleum  distribution  system                                                               
operates statewide to deliver petroleum  products.  He said he is                                                               
here today to speak in support of  HB 15.  This bill would update                                                               
the  statutory description  of commercial  vehicles, taking  into                                                               
account that modern  vehicles are built cleaner  and with greater                                                               
safety considerations for  their use than older  vehicles.  Under                                                               
the bill, CPD  Alaska LLC would no longer have  to have personnel                                                               
who  drive the  F-50 size  trucks certified  by the  DOT&PF.   He                                                               
characterized this class  of truck as a  heavy-duty pickup truck.                                                               
Many small businesses have been  adversely affected by the DOT&PF                                                               
requirements  and must  transfer staff  from all  over Alaska  to                                                               
Anchorage   for  physicals   that   are  otherwise   unnecessary.                                                               
Further, these  businesses must provide additional  equipment and                                                               
manpower   to   initiate   and  maintain   records   for   driver                                                               
qualification  files for  staff that  does not  deliver petroleum                                                               
products or  drive commercial  vehicles as  part of  their normal                                                               
duties.   He  emphasized that  the additional  transportation and                                                               
personnel costs  weigh heavily into  the overall cost  to operate                                                               
businesses  in   rural  Alaska.    These   additional  costs  are                                                               
ultimately passed on  to the customer, he said.   Customers would                                                               
also benefit, such  as those living in McGrath  with home heating                                                               
fuel  costs at  $7.26  per  gallon or  in  Iliamna  at $7.58  per                                                               
gallon, in particular, during the coldest months of the year.                                                                   
                                                                                                                                
MR. MOELLER said, in addition  to the onerous requirements placed                                                               
on  organizations,  such  as  CPD   Alaska,  the  regulations  as                                                               
currently written place an added  strain on the Alaska commercial                                                               
motor  vehicle resources.   He  suggested these  costs should  be                                                               
spent to oversee  large commercial vehicles rather  than on large                                                               
pickup  trucks  that  could  easily  be  owned  and  operated  by                                                               
noncommercial licensed individuals  with valid drivers' licenses.                                                               
He urged members to support HB 15.                                                                                              
                                                                                                                                
2:02:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE asked  for  clarification  on the  previous                                                               
name for CPD Alaska.                                                                                                            
                                                                                                                                
MR.  MOELLER  answered that  CPD  Alaska  was previously  Crowley                                                               
Petroleum Distribution.                                                                                                         
                                                                                                                                
2:02:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE, after first  determining no one else wished                                                               
to testify, closed public testimony on HB 15.                                                                                   
                                                                                                                                
2:03:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  moved to  report HB  15 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no  objection, HB  15 was reported  from the                                                               
House Transportation Standing Committee.                                                                                        
                                                                                                                                
2:04:04 PM