Legislature(2017 - 2018)CAPITOL 106

04/05/2017 08:00 AM House EDUCATION

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Audio Topic
08:03:24 AM Start
08:04:36 AM HB189
08:27:54 AM Presentation: Northwestern Alaska Career and Technical Center (nactec)
09:50:35 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 189 SCHOOL BUS INSPECTION FEES TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Presentation: Northwestern AK Career & Technical TELECONFERENCED
Center
               HB 189-SCHOOL BUS INSPECTION FEES                                                                            
                                                                                                                                
8:04:36 AM                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND announced  that the first order  of business would                                                               
be HOUSE BILL NO. 189, "An  Act relating to program receipts; and                                                               
relating to fees for school bus inspections."                                                                                   
                                                                                                                                
8:05:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   TAMMY   WILSON,    Alaska   State   Legislature,                                                               
introduced HB 189, as the  sponsor, paraphrasing from the sponsor                                                               
statement,   which   read   as  follows   [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     HB 189 allows the  Department of Education to establish                                                                    
     by regulation  a fee  to cover the  cost of  the school                                                                    
     bus inspections required  under AS 14.09.030(b)(2). The                                                                    
     school bus operator will be charged this fee.                                                                              
                                                                                                                                
REPRESENTATIVE  JOHNSTON  asked  whether  the  bill  affects  the                                                               
number of inspections.                                                                                                          
                                                                                                                                
REPRESENTATIVE T.  WILSON said inspections  occur twice a  year -                                                               
as  is already  in statute  - and  the bill  does not  change the                                                               
inspection process,  but only that  the fee  will be paid  by the                                                               
school bus operators.                                                                                                           
                                                                                                                                
REPRESENTATIVE   JOHNSTON   suggested  responsibility   for   the                                                               
inspections may be held by local - and not state - government.                                                                  
                                                                                                                                
REPRESENTATIVE T. WILSON said the intent  of the bill is to allow                                                               
the  Department  of  Education and  Early  Development  (EED)  to                                                               
charge the fee; however, school  districts may be able to address                                                               
this issue.                                                                                                                     
                                                                                                                                
REPRESENTATIVE FANSLER inquired as to the cost of inspections.                                                                  
                                                                                                                                
REPRESENTATIVE  T. WILSON  advised the  statute does  not address                                                               
the cost;  however, [Fiscal Note  Identifier:   HB 189-EED-SFF-3-                                                               
31-17]  indicated   further  details   would  be   determined  by                                                               
regulations.   The department could determine  a specific amount,                                                               
or the  current amount budgeted -  $210,000 - could be  used as a                                                               
baseline.   In  further response  to Representative  Fansler, she                                                               
said currently the state conducts  and pays for inspections.  The                                                               
bill would  allow the fee to  be charged to each  private vendor;                                                               
school bus inspections  are necessary but should not  be paid for                                                               
by the state.                                                                                                                   
                                                                                                                                
8:08:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH  surmised the intent  is to shift  the cost                                                               
of the  inspections from  the state to  the school  bus operators                                                               
and restated the question as to what inspections cost.                                                                          
                                                                                                                                
REPRESENTATIVE   T.   WILSON   observed   inspections   are   the                                                               
responsibility  of  the  operators,  as  are  safety  inspections                                                               
required of other  businesses.  She returned attention  to page 2                                                               
of the  fiscal note  and reported  there is  an average  of 1,055                                                               
buses inspected each  year and the department  would establish an                                                               
inspection  fee of  $175 per  bus,  per inspection.   In  further                                                               
response to  Representative Parish,  she confirmed the  fee could                                                               
be changed by regulation.                                                                                                       
                                                                                                                                
REPRESENTATIVE PARISH said his concern  is the safety of students                                                               
is the responsibility of the state.                                                                                             
                                                                                                                                
REPRESENTATIVE  T. WILSON  stressed  inspections  would still  be                                                               
required  without any  change --  the only  difference being  who                                                               
pays the fee.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KOPP  observed one  way  or  another $147,000  is                                                               
going to be  paid by the state because if  EED establishes a fee,                                                               
school  bus operators  are going  to  negotiate the  cost of  bus                                                               
inspections into their contracts.                                                                                               
                                                                                                                                
REPRESENTATIVE T. WILSON agreed,  however, local school districts                                                               
may decide that  they have a better or more  affordable means for                                                               
fulfilling  the  inspection  requirement.    She  also  suggested                                                               
school bus operators may find efficiencies.                                                                                     
                                                                                                                                
8:13:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSTON  questioned who is ultimately  liable for                                                               
school buses.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  T.  WILSON  opined the  responsibility  falls  to                                                               
those  who have  contracts for  school bus  transportation.   The                                                               
related  statute may  have  been  enacted to  ensure  a level  of                                                               
safety through  state oversight.   However,  the statute  did not                                                               
provide for charging an inspection fee.                                                                                         
                                                                                                                                
REPRESENTATIVE JOHNSTON  advised private  contractors have  to be                                                               
bonded, and their  liability is probably in  partnership with the                                                               
local school district; she urged for  the line of liability to be                                                               
ascertained.                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND questioned who performs the inspections.                                                                         
                                                                                                                                
REPRESENTATIVE T. WILSON said the department.                                                                                   
                                                                                                                                
8:16:13 AM                                                                                                                    
                                                                                                                                
HEIDI  TESHNER,   Director,  Administrative  Services,   EED,  in                                                               
response to  Chair Drummond,  explained currently  the department                                                               
contracts with  "resurrection auto" to conduct  inspections twice                                                               
per  year; should  HB 189  be  enacted, the  cost of  inspections                                                               
would affect both school districts  and contractors because there                                                               
are  district-operated   school  buses   and  contractor-operated                                                               
school buses.                                                                                                                   
                                                                                                                                
8:17:40 AM                                                                                                                    
                                                                                                                                
ELWIN  BLACKWELL,  School  Finance Manager,  School  Finance  and                                                               
Facilities Section,  EED, in response to  Chair Drummond, further                                                               
explained   the   Anchorage   School  District   (ASD)   operates                                                               
approximately  122  buses  and  Reliant  Transportation  operates                                                               
approximately 181 school buses.                                                                                                 
                                                                                                                                
CHAIR  DRUMMOND asked  whether the  department contracts  to have                                                               
all the buses inspected.                                                                                                        
                                                                                                                                
MS. TESHNER said correct.                                                                                                       
                                                                                                                                
8:18:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ  clarified   [Fiscal  Note  Identifier:                                                               
HB189-EED-SFF-3-31-17]  indicates the  costs  that are  currently                                                               
being paid by  the state are moved either to  school districts or                                                               
to contractors.   She pointed out the fiscal  note cost estimates                                                               
are:   $95,600 in  fiscal year  2019 (FY 19);  $97,000 in  FY 20;                                                               
$107,900 in FY 21.  Further,  the fiscal note indicates the state                                                               
would collect fees to implement the program.                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSTON asked EED  to provide inspection data and                                                               
whether  safety  violations have  been  routinely  reported.   In                                                               
addition, she  questioned whether the contractor  [performing the                                                               
inspections] is a certified school bus inspector.                                                                               
                                                                                                                                
MR. BLACKWELL  said the  contractor hired by  the state  has been                                                               
trained as a  school bus inspector; the same  contractor has been                                                               
doing the  inspections for approximately 10-15  years and follows                                                               
specific criteria.                                                                                                              
                                                                                                                                
REPRESENTATIVE JOHNSTON asked whether  a local garage or mechanic                                                               
could  satisfy the  requirements  for the  inspections and  avoid                                                               
travel costs.                                                                                                                   
                                                                                                                                
MS. TESHNER offered to provide the data requested.                                                                              
                                                                                                                                
REPRESENTATIVE PARISH  observed the bill  does not provide  for a                                                               
change   in   the   contractor  who   is   currently   performing                                                               
inspections.                                                                                                                    
                                                                                                                                
MS. TESHNER agreed.                                                                                                             
                                                                                                                                
8:23:40 AM                                                                                                                    
                                                                                                                                
CHAIR  DRUMMOND asked  the  bill sponsor  whether  the number  of                                                               
inspections  per year  is sufficient,  or whether  one inspection                                                               
per year would be adequate.                                                                                                     
                                                                                                                                
REPRESENTATIVE  T. WILSON  noted the  intent of  the bill  is not                                                               
just who pays  for the inspections but to point  out some regions                                                               
have public  bus transportation  systems that are  not inspected,                                                               
and public  safety issues  are not  a topic  of discussion.   She                                                               
opined  if   inspections  were  determined  by   "local  control"                                                               
inspections  of school  buses and  of  public transportation  may                                                               
increase.   Data from the  department - indicating the  number of                                                               
past  violations -  may be  informational, but  the liability  is                                                               
held  by   the  local  government,  school   districts,  and  bus                                                               
operators.  The  primary intent is to extract  the government out                                                               
of  the  process,   and  to  look  for  cost   savings  and  more                                                               
flexibility in student transportation.                                                                                          
                                                                                                                                
CHAIR  DRUMMOND related  some  school  districts have  difficulty                                                               
finding school  bus drivers to  train; further, she  was informed                                                               
ASD is  cooperating with the  public transit system  in Anchorage                                                               
[to provide student transportation].                                                                                            
                                                                                                                                
REPRESENTATIVE  T.  WILSON  acknowledged   options  may  well  be                                                               
available using  public transportation systems already  in place;                                                               
however, the  liability issue  remains a  concern, and  to ensure                                                               
children get to school in the safest way possible.                                                                              
                                                                                                                                
8:27:47 AM                                                                                                                    
                                                                                                                                
[HB 189 was held over.]                                                                                                         

Document Name Date/Time Subjects
HB189 Sponsor Statement 3.24.17.pdf HEDC 4/5/2017 8:00:00 AM
HB 189
HB0189A 3.24.17.PDF HEDC 4/5/2017 8:00:00 AM
HB 189
HB189 Fiscal Note EED 3.31.17.pdf HEDC 4/5/2017 8:00:00 AM
HB 189