05/06/2006 09:00 AM Senate FINANCE

                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 403(TRA)                                                                               
     "An Act relating to registration and operation of low-speed                                                                
     vehicles."                                                                                                                 
                                                                                                                                
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
9:49:13 AM                                                                                                                    
                                                                                                                                
IAN  FISK,  Staff  to  Representative  Bill  Thomas,  the  bill's                                                               
sponsor, explained the bill would  pertain to vehicles classified                                                               
by federal  statutes as "low  speed vehicles". Rather  than being                                                               
such things as golf carts, the  vehicles in question are "a class                                                               
of vehicles"  that are required to  have "headlights, taillights,                                                               
brake   lights,   seat   belts,   bumpers,   automotive   quality                                                               
windshields, and  emergency brakes"  and other  features required                                                               
on a  traditional car. These  vehicles are also required  to meet                                                               
federal  test standards,  and the  maximum  speed these  vehicles                                                               
could obtain is  25 miles per hour (MPH). In  order not to impede                                                               
traffic, their  use is limited  to roadways with a  maximum speed                                                               
of 35 MPH.  Low speed vehicles are currently legal  in 36 states.                                                               
Their  advantages  would  include  zero emissions  and  low  fuel                                                               
expense. They  are particularly popular in  gated communities and                                                               
retirement communities.                                                                                                         
                                                                                                                                
Mr.  Fisk informed  the  Committee this  bill  would provide  the                                                               
Division of  Motor Vehicles (DMV), Department  of Administration,                                                               
the authority to register and license such vehicles.                                                                            
                                                                                                                                
Co-Chair  Green noted  that a  picture  of the  vehicle [copy  on                                                               
file] was included in members' bill packets.                                                                                    
                                                                                                                                
Co-Chair Green  understood that  the bill  would allow  owners of                                                               
these vehicles to register them.                                                                                                
                                                                                                                                
Senator Olson countered  that, rather than "allowing"  them to be                                                               
registered, the legislation would "require" them to be licensed.                                                                
                                                                                                                                
Mr. Fisk responded that DMV would  be required to register such a                                                               
vehicle were someone to visit a DMV office with one.                                                                            
                                                                                                                                
Co-Chair  Green  stated  that  currently  DMV  could  "refuse  to                                                               
register" such a vehicle.                                                                                                       
                                                                                                                                
Mr.  Fisk  clarified  that  DMV   does  not  currently  have  the                                                               
statutory authority  to register  them. This  legislation mirrors                                                               
the approach other states have  taken regarding this new class of                                                               
vehicles.                                                                                                                       
                                                                                                                                
Senator Olson  asked for  examples of  violations such  a vehicle                                                               
might incur.                                                                                                                    
                                                                                                                                
Mr. Fisk  noted that language  in Sec. 4  page 2 line  30 through                                                               
page 3 line 9 would  clarify the operational guidelines for these                                                               
vehicles.  For example,  they  must adhere  to  traffic laws  and                                                               
carry liability insurance.                                                                                                      
                                                                                                                                
Co-Chair Green  reiterated that these vehicles  could not operate                                                               
on roadways with a posted speed limit above 35 MPH.                                                                             
                                                                                                                                
9:53:36 AM                                                                                                                    
                                                                                                                                
Co-Chair  Green  noted that  members'  packets  contain a  letter                                                               
[copy on  file] addressed  to the  Committee from  Duane Bannock,                                                               
Director,  Alaska  Division  of  Motor  Vehicles,  Department  of                                                               
Administration. The letter explains  that DMV could not currently                                                               
license  or  register this  class  of  vehicle. This  legislation                                                               
would allow DMV  to do so for any customers  seeking such action.                                                               
The  letter  also substantiates  that  these  vehicles could  not                                                               
traverse roadways with speed limits exceeding 35 MPH.                                                                           
                                                                                                                                
Co-Chair  Wilken moved  to report  the bill  from Committee  with                                                               
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There being  no objection, SCS  CS HB 403(TRA) was  REPORTED from                                                               
Committee with  previous zero fiscal  note #1 dated  February 22,                                                               
2006  from the  Department of  Public Safety  and $10,500  fiscal                                                               
note  #2  dated   February  21,  2006  from   the  Department  of                                                               
Administration.                                                                                                                 
                                                                                                                                
9:54:24 AM