Legislature(2005 - 2006)HOUSE FINANCE 519
01/25/2006 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB266 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 266 | TELECONFERENCED | |
HOUSE BILL NO. 266
An Act relating to offenses and penalties for violation
of vehicle weight limitations; prohibiting the use of a
violation of a vehicle weight limitation for certain
personal automobile insurance actions; amending Rule
43.6, Alaska Rules of Administration; and providing for
an effective date.
Vice Chair Stoltze MOVED to ADOPT work draft #24-LS0860\I,
Bailey, 1/23/06, as the version of the bill before the
Committee. He then proceeded to OBJECT for further
explanation.
1:41:16 PM
JENNIFER BAXTER, STAFF, REPRESENTATIVE JIM ELKINS, explained
that HB 266 proposes the first increase in penalties since
the existing provisions were established in the 1970's.
Existing provisions do not adequately inhibit commercial
shipping companies and others from violating overweight
vehicle limitations. The proposed modification establishes
a graduated penalty for the amount of weight in excess of
the limitations set by statute, regulation and/or permit.
Ms. Baxter noted that there are new offenses established to
sanction shippers or carriers who commit or allow those
working for them to commit a combined total of 12 or more
violations during any twelve-month period. The maximum fine
for the violations is $10 thousand dollars. The
modification is expected to result in commercial shippers
and carriers being more rigorous toward compliance with
overweight vehicle limitations.
Ms. Baxter pointed out another provision of the bill, which
prohibits the use of overweight vehicle violations for use
by insurers to adversely impact decisions related to
providing private automobile insurance coverage for drivers.
In the majority of cases, the driver has little knowledge or
ability to limit the weight of the load placed on the
vehicle they are assigned to drive. As a result, the
company causes the violation and if citied, pays the fine
imposed.
Currently, overweight vehicle violations are used by
insurers as justification to take adverse action in relation
to the personal automobile insurance coverage of truck
drivers. Section #1 of the bill would prohibit that action.
The legislation will protect drivers who do not know they
are in violation and State roads from overweight vehicles.
The Department of Transportation & Public Facilities,
Teamsters, and Horizon Shipping Lines support the bill and
urge passage.
1:42:54 PM
Vice Chair Stoltze asked if the policy to not penalize was
balanced so there would be no competitive advantage,
violating the law.
Ms. Baxter understood it would bring forth a competitive
balance and protects the driver's personal insurance
coverage.
1:43:47 PM
Co-Chair Meyer pointed out that the Teamsters, Alaska
Trucking Association and the Department of Transportation &
Public Facilities support the legislation.
1:44:14 PM
Representative Kerttula inquired about the "indirect
courtroom" amendment, the two third vote requirement. Ms.
Baxter explained that was original language and had been
removed, as it was redundant.
Vice Chair Stoltze interjected that it had been discussed in
previous minutes. He noted that Representative Gruenberg
had been satisfied with the proposed legal opinion.
1:45:17 PM
Ms. Baxter continued, the sponsor did not see the language
as a useful remedy. Co-Chair Meyer noted that there was
pending on-line testimony regarding that concern.
1:45:51 PM
Representative Kelly inquired if insurance companies support
the legislation. Ms. Baxter did not know if they do support
the current version.
1:46:12 PM
Representative Hawker asked which version of the bill, the
Committee was discussing.
1:46:45 PM
Vice Chair Stoltze WITHDREW his OBJECTION to adopting the
#24-LS0860\I version. There being NO further OBJECTION, it
was adopted.
1:46:59 PM
Representative Hawker asked why the section addressing
product violations had been removed.
1:47:14 PM
Ms. Baxter requested that be answered by other testifiers.
1:47:29 PM
AVES THOMPSON, DIRECTOR, DIVISION OF MEASUREMENT STANDARDS
AND COMMERCIAL VEHICLE ENFORCEMENT, DEPARTMENT OF
TRANSPORTATION & PUBLIC FACILITIES, provided an overview of
the sectional analysis for the proposed Committee version.
[Copy on File].
He pointed out that:
· Section 1 prohibits the use of overweight vehicle
violations by insurers to adversely impact decisions
related to providing private automobile insurance
coverage for drivers.
· Section 2 modifies existing law related to the penalty
structure for overweight vehicle violations.
Mr. Thompson summarized, infrastructure protection was a
major issue as repair and maintenance costs resulting from
illegal damage to streets, roads and highways continue to
escalate. The State needs to provide a sufficient
deterrence to the loading of illegal overweight trucks.
The Department urges favorable consideration of HB 266.
1:51:53 PM
Representative Hawker questioned why the section addressing
"chronic violators" had been removed. Mr. Thompson
acknowledged that there had been a lot of debate regarding
carrying that language forward. Part of the problem that
results from overweight containers is the difference in the
equipment used to transport them. He stated that weight
concerns become a competitive issue. Mr. Thompson added, it
is not in the role of the Department of Transportation &
Public Facilities to interfere in the relationship between
customers and carriers. That remains an industry problem.
1:53:32 PM
Representative Holm referenced the overweight penalty
charges. He provided an example of purchasing a load of
gravel in Fairbanks and if the legislation is passed that
total charge will be huge. The concern with gravel weight
changes the results depending on the amount of moisture in
the actual gravel. No one can know the actual weight and/or
the overweight change.
1:55:38 PM
Mr. Thompson advised that the penalty structure had not been
changed at the low end. The Department realizes that it
would be easy to make a mistake. The flat fee of $100 is
reflective with the current amount. Rather than attempt to
distinguish at the low level, consideration was made that
concern. Weight allowances are spelled out in the
Administrative Code.
1:56:54 PM
Representative Holm expressed his concern noting that he had
driven trucks for many years. He maintained that the fine
was too high in comparison to the actual profit made per
load. He voiced concern with raising the rates at all on
the lower end, stating that the "little guy will be
affected".
1:58:11 PM1:58:12 PM
Mr. Thompson sympathized, however, did not want to create a
complicated fine structure. He stressed that the Department
wants to deter overweight operations. In the case of the
gravel and dirt haulers, an opportunity is provided on site,
to correct it.
1:59:12 PM
Representative Holm thought that would be problematic. The
trucking industry is concerned with the amount it costs the
individual. He stressed that the little companies have a
difficult time supporting their work.
2:00:22 PM
Vice Chair Stoltze declared a conflict as he has family
members in the trucking industry.
Vice Chair Stoltze inquired if there are scales at gravel
fill and road sites. Mr. Thompson replied that usually
there are, particularly in the larger gravel pits. On most
of the State jobs, weight tickets are required.
2:01:40 PM
Representative Stoltze asked if there were scales at the
Klondike pit in Chugiak.
Mr. Thompson noted that there are two different programs in
the Division:
· Weights and measures; and
· Commercial vehicle enforcement.
He stated that typically, the Department does not go into
the gravel pit to enforce the weight limits. Some vehicles
are stopped if it appears there is a problem.
Vice Chair Stoltze reiterated his query if there were scales
at the above-mentioned locations. Mr. Thompson said he
would check into that.
2:03:11 PM
In response to another question by Vice Chair Stoltze, Mr.
Thompson explained the manner used to determine weight.
Sometimes, it is obvious if the truck axel bounces or the
way a truck moves down the highway.
2:03:47 PM
Mr. Thompson responded to Vice Chair Stoltze's question,
noting that he has worked during his years with the State in
two departments while addressing weight measurement
standards: the Department of Commerce before that function
merged & moved to the Department of Transportation & Public
Facilities in 1997. He thought that the current Division
has operated very efficiently over the past nine years.
Concluding, he stated he has worked in trucking regulations
for nearly 23 years.
2:05:09 PM
Mr. Thompson spoke to the trooper assigned to their Division
through a federal funding provision under the Motor Safety
Assistance Program. The Division determined, it would be
best during that transitional period, moving from the
Department of Public Safety to the Department of
Transportation & Public Facilities that there be a trooper
presence. The trooper presence has continued and the
Division still pays that salary from federal funding. The
relationship with Department of Public Safety has proved to
be effective.
2:06:08 PM
On a different note, Vice Chair Stoltze asked if Mr.
Thompson had written a letter to Dear Abby. Mr. Thompson
replied he had.
2:07:28 PM
Representative Holm asked if any owner/operators had been
consulted regarding the bill. Mr. Thompson commented that
the legislation was proposed last year. He had spoken with
a number of owner/operators individually, receiving a mixed
reaction. There is no paper trail.
Representative Holm asked the number of owner/operators that
run businesses up North. Mr. Thompson did not know that
number but clarified that they typically are leased to a
carrier and fall into a category where the company pays for
the citations.
2:08:52 PM
Representative Holm noted that the State does not own any
highway areas on military facilities. Mr. Thompson thought
that was correct.
Representative Holm asked why the Department had employees
on those military installations, weighing trucks. Mr.
Thompson did not know that they did. Representative Holm
asserted that they do. He offered to talk later to Mr.
Thompson about that.
2:10:46 PM
Mr. Thompson was aware that the State provides driver safety
inspections at the gates of military installations, in
response to a U.S. military request. He mentioned a number
of situations encountered with drivers smoking dope. He
acknowledged that he did not know about the use of scales on
those bases.
Mr. Thompson commented on the State moving into a bidding
process; he pointed out that there is nothing in that
process, which allows vehicles to run "overweight" on the
highways. Representative Holm pointed out that they are not
on the highways but on federal property.
Co-Chair Meyer recommended that Representative Holm and Mr.
Thompson follow-up on that concern.
2:12:10 PM
Representative Holm thought that it could directly affect
someone if they received a ticket or not. He wanted to
guarantee that there was no impropriety.
2:12:39 PM
MICHAEL BELL, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
ALASKA TRUCKING ASSOCIATION (ATA), ANCHORAGE, spoke in
support of the legislation. He stated that their Board of
Directors voted unanimously to support HB 266 with the
amendments as written. The bill would address driver
citation issues dealing with overweight violations.
2:15:51 PM
Representative Kelly inquired if the ATA position had
changed since the memo presented to Representative Gatto
last year. Mr. Bell responded that last year, the ATA was
not in support of the bill in its' entirety, which had
changed with the current version.
2:17:06 PM
DENNIS BAILEY, (TESTIFIED VIA TELECONFERENCE), ALASKA LEGAL
SERVICES, JUNEAU, offered to answer questions regarding the
two-thirds vote issue. Representative Kerttula noted that
she had read the memo and was satisfied.
2:17:58 PM
Vice Chair Stoltze MOVED to adopt the new fiscal notes.
There being NO OBJECTION, the new notes were adopted.
Vice Chair Stoltze MOVED to REPORT CS HB 266 (FIN) out of
Committee with individual recommendations and with the
accompanying three new notes. Representative Hawker
OBJECTED to correct the dates moved on the fiscal notes and
then WITHDREW his OBJECTION. There being NO further
OBJECTION, it was so ordered.
CS HB 266 (FIN) was reported out of Committee with a "no
recommendation" and with new zero notes by the Department of
Transportation & Public Facilities and the Department of
Commerce, Community & Economic Development and a new
indeterminate note by the Department of Law.
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