03/29/2012 09:00 AM Senate STATE AFFAIRS

                                                                                                                                
          HB 271-COMMERCIAL MOTOR VEHICLE REQUIREMENTS                                                                      
                                                                                                                                
9:59:55 AM                                                                                                                    
CHAIR  WIELECHOWSKI  announced  that  the next  bill  before  the                                                               
committee  would  be HB  271,  which  changes the  definition  of                                                               
commercial vehicles.                                                                                                            
                                                                                                                                
REPRESENTATIVE  WES KELLER,  sponsor  of HB  271, introduced  the                                                               
bill.  He  related  that  the  bill  changes  the  definition  of                                                               
commercial vehicles  to adapt to  the new and better  vehicles of                                                               
today.  It modernizes  the law  and reduces  regulation on  small                                                               
businesses and owners of commercial vehicles.                                                                                   
                                                                                                                                
JIM POUND,  staff, Representative Wes Keller,  summarized HB 271.                                                               
He  said that  the bill  would make  doing business  in Alaska  a                                                               
little  easier  and less  costly.  Transporting  goods in  pickup                                                               
trucks and step  vans is typically done by  small business owners                                                               
in Alaska. Those vehicles are  currently classified as commercial                                                               
vehicles. HB 271 will increase  gross vehicle weight restrictions                                                               
from the current  10,000 pounds to 14,000  pounds. Today's light-                                                               
to-medium trucks  are larger than  when the original  language in                                                               
the law was written in 1999.                                                                                                    
                                                                                                                                
He gave  an example  of where a  small business  owner, currently                                                               
classified  as  commercial, would  run  into  problems under  the                                                               
current  language  with  additional   costs  such  as  insurance,                                                               
registration, inspections,  and the  cost of  a medical  exam for                                                               
the vehicle operator.  Change in the weight  allocation makes the                                                               
average one-ton pickup truck non-commercial.                                                                                    
                                                                                                                                
He  noted that  the same  rules  apply for  pilot vehicles.  Many                                                               
younger Alaskans  are looking to  get into the  trucking industry                                                               
and this  bill would give them  an opportunity to operate  a more                                                               
efficient one-ton vehicle as a pilot vehicle.                                                                                   
                                                                                                                                
10:02:24 AM                                                                                                                   
CHAIR  WIELECHOWSKI requested  an  explanation  of the  technical                                                               
changes.                                                                                                                        
                                                                                                                                
MR.  POUND reported  that  Section 1  deals  with regulations  in                                                               
statutes in conjunction with federal law.                                                                                       
                                                                                                                                
CHAIR  WIELECHOWSKI  asked about  page  1,  lines 8-10,  and  the                                                               
purpose  for removing  regulations  that are  necessary to  avoid                                                               
loss or withholding of federal highway money.                                                                                   
                                                                                                                                
DAN  BREEDEN,  Director,  Division  of  Measurement  Standards  &                                                               
Commercial  Vehicle  Enforcement, Department  of  Transportation,                                                               
provided information  related to  HB 271.  He explained  that the                                                               
removal  of that  language  is  to prevent  the  loss of  federal                                                               
highway  funding and  to make  regulations  that would  withstand                                                               
court challenges.                                                                                                               
                                                                                                                                
CHAIR WIELECHOWSKI asked what was being amended.                                                                                
                                                                                                                                
MR. BREEDEN  clarified that  the language was  not clear  and was                                                               
challenged in court.  The intent is to avoid the  loss of federal                                                               
highway funding.                                                                                                                
                                                                                                                                
SENATOR PASKVAN  asked if  the intent is  to prevent  Alaska from                                                               
being potentially at risk for loss of federal highway funds.                                                                    
                                                                                                                                
MR. BREEDEN said it was a moot point.                                                                                           
                                                                                                                                
CHAIR WIELECHOWSKI summarized that  the current statute says that                                                               
the state can only adopt  regulations regarding size, weight, and                                                               
load provisions,  and adopting those regulations  might cause the                                                               
state to lose federal highway funding.                                                                                          
                                                                                                                                
MR. BREEDEN replied that some interpret it that way.                                                                            
                                                                                                                                
CHAIR WIELECHOWSKI  restated that  HB 271  would change  that and                                                               
give the  state more flexibility  in allowing the state  to adopt                                                               
regulations regarding size, weight,  and load provisions that may                                                               
or may not affect federal highway funds.                                                                                        
                                                                                                                                
MR. BREEDEN said yes.                                                                                                           
                                                                                                                                
CHAIR WIELECHOWSKI requested clarification of Section 2.                                                                        
                                                                                                                                
10:07:00 AM                                                                                                                   
MR.  POUND explained  that on  page 1,  line 14,  the words  "for                                                               
commercial  purposes"  were added  to  clarify  that it  was  for                                                               
commercial motor vehicles. On page 2,  line 7, the words "is used                                                               
in the  transportation of  materials found  by the  United States                                                               
Secretary of  Transportation to be  hazardous for purposes  of 49                                                               
U.S.C 5101 - 5128" were deleted.                                                                                                
                                                                                                                                
CHAIR WIELECHOWSKI asked  why the change on page 1,  line 14, was                                                               
necessary.                                                                                                                      
                                                                                                                                
MR.  POUND explained  that  it clarifies  that  the vehicles  are                                                               
specifically being used for commercial purposes.                                                                                
                                                                                                                                
CHAIR WIELECHOWSKI asked why that was important.                                                                                
                                                                                                                                
MR.  BREEDEN explained  that there  were vehicles  that were  not                                                               
being  used in  commerce that  are being  forced to  be regulated                                                               
when they would not need to be.                                                                                                 
                                                                                                                                
CHAIR WIELECHOWSKI  asked for the  practical implication  of that                                                               
change.                                                                                                                         
                                                                                                                                
MR. BREEDEN clarified if a person  is not in commerce, then their                                                               
vehicle should not be considered a commercial vehicle.                                                                          
                                                                                                                                
SENATOR PASKVAN asked why the word  "intrastate" is used if it is                                                               
referring  to commerce.  He suggested  it should  be "intrastate"                                                               
and "interstate".                                                                                                               
                                                                                                                                
MR.  BREEDEN said  bill would  only  affect intrastate  vehicles,                                                               
because  the definition  of interstate  commerce is  still 10,000                                                               
pounds.                                                                                                                         
                                                                                                                                
SENATOR PASKVAN pointed  out that it was meaningless  to limit it                                                               
to  intrastate. He  reiterated that  commercial purposes  include                                                               
interstate commerce.                                                                                                            
                                                                                                                                
MR.   BREEDEN   said   the    Federal   Motor   Carriers   Safety                                                               
Administration (FMCSA)  has a clear definition  of the difference                                                               
between  "intrastate" and  "interstate".  This legislation  would                                                               
affect  intrastate  vehicles  only   because  of  vehicle  weight                                                               
standards.                                                                                                                      
                                                                                                                                
10:09:57 AM                                                                                                                   
CHAIR  WIELECHOWSKI  agreed  with  Senator  Paskvan's  point.  He                                                               
pointed out  that Supreme  Court has a  very broad  definition of                                                               
"interstate", which  is any commercial transaction  that has been                                                               
deemed by  the Supreme Court  to be an  "interstate" transaction.                                                               
He suggested  having an attorney  from Legislative  Legal address                                                               
the issue.                                                                                                                      
                                                                                                                                
MR. POUND continued to explain changes  in Section 2.  On page 2,                                                               
line  7,  language  was  deleted because  it  is  redundant  with                                                               
federal  law.   That  same change  is  also made  on  page 3,  in                                                               
Section 3.                                                                                                                      
                                                                                                                                
CHAIR WIELECHOWSKI  asked for the  rationale behind  removing the                                                               
words, "is used  in the transportation of materials  found by the                                                               
United  States Secretary  of Transportation  to be  hazardous for                                                               
purposes of 49 U.S.C 5101 - 5128."                                                                                              
                                                                                                                                
MR. BREEDEN  related that all  hazardous material  operations are                                                               
under federal law already.                                                                                                      
                                                                                                                                
CHAIR WIELECHOWSKI asked  why the words were included  in bill in                                                               
the first place.                                                                                                                
                                                                                                                                
MR. BREEDEN thought it was due to a lack of understanding.                                                                      
                                                                                                                                
CHAIR  WIELECHOWSKI  inquired  about  the addition  of  the  word                                                               
"motor" on page 2, line 12.                                                                                                     
                                                                                                                                
MR. POUND said it was a technical change.                                                                                       
                                                                                                                                
CHAIR WIELECHOWSKI  asked about  the change on  page 2,  line 20,                                                               
the deletion of the word "recreational."                                                                                        
                                                                                                                                
MR. POUND explained that it was  a reference to motor homes which                                                               
are not commercial vehicles.                                                                                                    
                                                                                                                                
CHAIR  WIELECHOWSKI  asked  for the  definition  of  recreational                                                               
vehicles.                                                                                                                       
                                                                                                                                
MR.  BREEDEN said  that the  definition of  recreational vehicles                                                               
lies  with the  Division of  Motor vehicles  and they  are exempt                                                               
from all things associated with commercial motor vehicles.                                                                      
                                                                                                                                
CHAIR  WIELECHOWSKI   asked  for  a  practical   implication  for                                                               
removing recreational vehicles from Section 3.                                                                                  
                                                                                                                                
MR.  BREEDEN  clarified  that  the reason  is  simply  to  exempt                                                               
recreational  vehicles   from  the  requirements   of  commercial                                                               
vehicles.                                                                                                                       
                                                                                                                                
CHAIR WIELECHOWSKI  inquired if  recreational vehicle  owners are                                                               
currently required to pay commercial fees.                                                                                      
                                                                                                                                
MR.  BREEDEN explained  that they  were  considered a  commercial                                                               
vehicle when used  for deliveries, but three years  ago the FMCSA                                                               
clarified  language  making  recreational  vehicles  exempt  from                                                               
commercial regulations.                                                                                                         
                                                                                                                                
10:14:19 AM                                                                                                                   
CHAIR  WIELECHOWSKI  asked if  it  would  result in  recreational                                                               
vehicle owners not having to buy insurance.                                                                                     
                                                                                                                                
MR.  BREEDEN  said  the  removal  of  the  language  was  further                                                               
clarification   to   remove   recreational  vehicles   from   any                                                               
commercial arena.                                                                                                               
                                                                                                                                
CHAIR WIELECHOWSKI asked if there was any practical change.                                                                     
                                                                                                                                
MR. BREEDEN said no.                                                                                                            
                                                                                                                                
MR. POUND  referred to Section  3 as "the  meat of the  bill." It                                                               
adds words  to distinguish between  vehicles greater  than 10,000                                                               
pounds  used for  interstate commerce  and vehicles  greater than                                                               
14,000 pounds used  for intrastate commerce in order  to show the                                                               
separation of the two classes of vehicles.                                                                                      
                                                                                                                                
SENATOR  MEYER  said  he  appreciated  the  list  of  classes  of                                                               
vehicles which are  not commercial vehicles. He asked  if Class 3                                                               
trucks would also be exempted.                                                                                                  
                                                                                                                                
MR. POUND  said Class  3 trucks  would be  exempted up  to 14,000                                                               
pounds.                                                                                                                         
                                                                                                                                
SENATOR MEYER gave an example of  a plumber who would need a Ford                                                               
450 truck weighing 16,000 pounds in order to do business.                                                                       
                                                                                                                                
MR. POUND thought it would be rated as a commercial vehicle.                                                                    
                                                                                                                                
SENATOR  MEYER  suggested that  the  limit  be raised  to  16,000                                                               
pounds for non-commercial vehicles.                                                                                             
                                                                                                                                
MR. POUND  noted that  the legislation  was based  on considering                                                               
one-ton trucks and doolies.                                                                                                     
                                                                                                                                
REPRESENTATIVE KELLER added that  he followed the recommendations                                                               
of   the   Alaska   Trucking  Association   when   drafting   the                                                               
legislation.                                                                                                                    
                                                                                                                                
10:17:53 AM                                                                                                                   
SENATOR  MEYER wondered  how  difficult  it is  to  obtain a  DOT                                                               
number.                                                                                                                         
                                                                                                                                
MR.  BREEDEN replied  that  the  process of  getting  a U.S.  DOT                                                               
number for  intrastate use is  easy to do  on line or  in person.                                                               
The  difference between  an interstate  and intrastate  number is                                                               
$300, with the forms being the same.                                                                                            
                                                                                                                                
CHAIR  WIELECHOWSKI  asked Mr.  Pound  if  there were  any  other                                                               
changes in Section 3.                                                                                                           
                                                                                                                                
MR. POUND responded that redundant language was removed.                                                                        
                                                                                                                                
MR. BREEDEN stated support for HB 271.                                                                                          
                                                                                                                                
10:19:34 AM                                                                                                                   
SCOTT HICKS, Vice President-Operations,  Alaska West Express, and                                                               
Vice President,  Alaska Trucking Association (ATA),  testified in                                                               
support  of HB  271. He  related that  a legislative  priority of                                                               
ATA's  was  to change  the  definition  of intrastate  commercial                                                               
vehicle to reduce  the regulatory burden on  small businesses. He                                                               
justified the  need to change motor  vehicle weight requirements.                                                               
He  talked about  the current  requirements  for pilot  vehicles,                                                               
which  would be  changed for  the better  by the  legislation. He                                                               
urged the committee to act favorably on the bill.                                                                               
                                                                                                                                
10:22:32 AM                                                                                                                   
CHAIR WIELECHOWSKI noted that someone  from the Department of Law                                                               
could address a previous question on the bill.                                                                                  
                                                                                                                                
ANMEI  GOLDSMITH,  Assistant   Attorney  General,  Transportation                                                               
Section,  Department of  Law, answered  questions  related to  HB
.  She addressed  the issue  of  intrastate versus  interstate                                                               
commerce. She  referred to a  case that found that  commerce that                                                               
happens  within  a state  affects  commerce  that happens  across                                                               
state  boundaries; therefore,  Congress  can regulate  intrastate                                                               
commerce.  She  explained  that statutes  that  cover  commercial                                                               
motor  vehicles make  a distinction  between interstate  commerce                                                               
and intrastate  commerce. Congress says that  interstate commerce                                                               
will be  regulated by federal  law, but intrastate  commerce will                                                               
not be governed by federal law.  The State of Alaska can regulate                                                               
intrastate commercial motor vehicles.                                                                                           
                                                                                                                                
SENATOR  PASKVAN asked  if HB  271 would  create a  conflict with                                                               
federal law for vehicles between 10,000 and 14,000 pounds.                                                                      
                                                                                                                                
MS. GOLDSMITH said  the intent of the bill is  to raise the gross                                                               
vehicle weight  for vehicles used only  for intrastate commercial                                                               
business, so she did not think so.                                                                                              
                                                                                                                                
SENATOR PASKVAN asked what the lower weight limit is.                                                                           
                                                                                                                                
10:27:51 AM                                                                                                                   
MS.  GOLDSMITH  said  she  would  have  to  double  check  weight                                                               
regulations.                                                                                                                    
                                                                                                                                
MR. BREEDEN  responded that federal  regulations allow  states to                                                               
regulate vehicles under 26,000 pounds.                                                                                          
                                                                                                                                
CHAIR WIELECHOWSKI asked if anything  in the bill could result in                                                               
Alaska losing federal highway money.                                                                                            
                                                                                                                                
MR. BREEDEN said he did not know.                                                                                               
                                                                                                                                
CHAIR WIELECHOWSKI  asked if the bill  deletes statutory language                                                               
regarding  commercial licenses  for  vehicles carrying  hazardous                                                               
materials.                                                                                                                      
                                                                                                                                
MR.  BREEDEN said  no. All  hazardous material  laws would  apply                                                               
regardless of the size of the vehicle.                                                                                          
                                                                                                                                
10:30:12 AM                                                                                                                   
CHAIR WIELECHOWSKI said HB 271 would be held in committee.