Legislature(2005 - 2006)CAPITOL 106

02/23/2006 08:00 AM House STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 475 PUB EMPLOYEE & TEACHER RETIREMENT & SBS TELECONFERENCED
Heard & Held
= HB 403 NEIGHBORHOOD ELECTRIC VEHICLES
Moved CSHB 403(STA) Out of Committee
*+ HB 45 CONTRIBUTIONS, LOBBYISTS, DISCLOSURE TELECONFERENCED
Scheduled But Not Heard
*+ HB 485 STATE PHARMACISTS/DOCTORS/AUDITOR EXEMPT TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HCR 27 DIVEST INVESTMENTS IN IRAN AND N. KOREA
Heard & Held
HB 403-NEIGHBORHOOD ELECTRIC VEHICLES                                                                                         
                                                                                                                                
8:10:04 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced that the  next order of business was HOUSE                                                               
BILL NO. 403,  "An Act relating to registration  and operation of                                                               
neighborhood electric vehicles."                                                                                                
                                                                                                                                
8:10:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  moved  to  adopt  the  proposed  committee                                                               
substitute  (CS)  for  HB 403,  Version  24-LS1229\F,  Luckhaupt,                                                               
2/22/06, as  a work draft.   There being no objection,  Version F                                                               
was before the committee.                                                                                                       
                                                                                                                                
8:10:48 AM                                                                                                                    
                                                                                                                                
IAN  FISK,  Staff to  Representative  Bill  Thomas, Alaska  State                                                               
Legislature,  on   behalf  of  Representative   Thomas,  sponsor,                                                               
reviewed the changes  made in Version F.  First  and foremost, he                                                               
said, Version F changes the  designation of neighborhood electric                                                               
vehicles to "low  speed vehicles", which he said  brings the bill                                                           
into  line  with existing  federal  regulations.   He  specified,                                                               
"We're  not talking  about golf  carts and  meter maid  vehicles,                                                               
although  these could  probably be  used in  those applications."                                                               
Low speed vehicles  are:  vehicles with four wheels  that must be                                                               
capable of a  minimum of 20 miles per hour  (mph), but limited to                                                               
a maximum  of 25 miles  per hour.   Any kind of  modifications to                                                               
make them go faster than that  are prohibited.  They are required                                                               
by  the  National  Highway Transportation  Safety  Administration                                                               
(NHTSA) to  have headlights,  front and  rear turn  signals, tail                                                               
lights,    break   lights,    reflectors,   automotive    quality                                                               
windshields,  mirrors,  parking breaks,  vehicles  identification                                                               
numbers,  and   seatbelts.    Furthermore,  he   said,  low-speed                                                               
vehicles  have  to meet  certain  testing  requirements that  are                                                               
spelled out in  federal regulations developed in 1998.   Mr. Fisk                                                               
noted that  "these types of vehicles"  are now legal in  36 other                                                               
states.                                                                                                                         
                                                                                                                                
MR.  FISK  noted  that low-speed  vehicles  offer  the  following                                                               
advantages:    fuel  efficiency,   zero  or  significantly  lower                                                               
emissions,   a   popularity   with   retired   individuals,   and                                                               
accessibility for those with physical disabilities.                                                                             
                                                                                                                                
8:13:08 AM                                                                                                                    
                                                                                                                                
MR. FISK stated  that the problem currently is  that the Division                                                               
of  Motor Vehicles  (DMV) cannot  regulate or  register low-speed                                                               
vehicles.   He reported  that the  DMV supports  [HB 403]  and is                                                               
requesting the  specific authority to register  and regulate low-                                                               
speed vehicles.  Version F also  spells out in Section 2 that the                                                               
registration  fees  for  the low-speed  vehicles  would  be  $100                                                               
biannually, which  is the  same cost as  for any  other passenger                                                               
vehicle.                                                                                                                        
                                                                                                                                
8:13:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  said she is unfamiliar  with the vehicles                                                               
in question.  She asked, "Are they what people call 'Segways'?"                                                                 
                                                                                                                                
8:14:03 AM                                                                                                                    
                                                                                                                                
MR. FISK  answered no.   He offered  his belief that  Segways are                                                               
referred  to  in statute  as  "personal  electric vehicles"  and,                                                               
thus, would not meet the requirements of a low-speed vehicle.                                                                   
                                                                                                                                
8:14:23 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON directed attention to  the definition of a low-speed                                                               
vehicle  on page  2, lines  20-24.   He noted  that Section  1 of                                                               
Version F refers to the safety requirements.                                                                                    
                                                                                                                                
8:14:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER asked  if  dealers would  be required  to                                                               
process  license  and  title  fees as  they  do  with  automotive                                                               
vehicles.                                                                                                                       
                                                                                                                                
8:15:14 AM                                                                                                                    
                                                                                                                                
MR.  FISK noted  that Section  3,  [subsection (a)]  read:   "The                                                               
operator of  a low-speed  vehicle is subject  to all  the traffic                                                               
and other  laws applicable to  operators of  passenger vehicles."                                                               
He said, "I would presume that dealers would be as well."                                                                       
                                                                                                                                
8:15:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  said, "I've heard people  whizzing around                                                               
the neighborhoods  on some kind of  vehicles.  I don't  know what                                                               
you  call them,  but  they  sound like  a  lawnmower and  they're                                                               
really obnoxious."   She asked  what the volume of  the low-speed                                                               
vehicles would be.                                                                                                              
                                                                                                                                
8:15:55 AM                                                                                                                    
                                                                                                                                
MR.  FISK  said  the  vast majority  of  low-speed  vehicles  are                                                               
electric and are not loud like a lawnmower.                                                                                     
                                                                                                                                
8:16:15 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  observed that  HB 403 would  limit the  vehicle, by                                                               
definition, to  being electric;  they could  not be  small engine                                                               
vehicles.                                                                                                                       
                                                                                                                                
8:16:38 AM                                                                                                                    
                                                                                                                                
MR. FISK  answered that's correct.   He pointed out that  on page                                                               
2,  line  20, the  word  "electric"  was  left in  before  "motor                                                               
vehicle" - an oversight, he explained.   He stated that it is not                                                               
the intention of  the sponsor to limit the  low-speed vehicles to                                                               
electric  ones,   because  there  are  vehicles   that  could  be                                                               
developed  to meet  the  restrictions that  could  be powered  by                                                               
other  sources,  for example,  propane.    He drew  attention  to                                                               
photos of low-speed vehicles [included  in the committee packet].                                                               
He said  these vehicles are filling  a market that is  asking for                                                               
an energy efficient vehicle.   Because they are limited in speed,                                                               
he said, the  low-speeds vehicles will most likely  be limited in                                                               
sound.                                                                                                                          
                                                                                                                                
8:18:51 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON,  in  response  to  questions  from  Representative                                                               
Gatto, clarified  the concept  of the  minimum and  maximum speed                                                               
requirements.                                                                                                                   
                                                                                                                                
8:19:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG indicated  his readiness  to amend  the                                                               
language to remove the word "electric".                                                                                         
                                                                                                                                
8:19:56 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON asked that amendments be held until later.                                                                         
                                                                                                                                
8:20:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  noted that Section 3,  [paragraph (b)],                                                               
sets  out restrictions  regarding  roads and  speed  limits.   He                                                               
opined that those details should not  be in state law, but should                                                               
be left to  the Department of Transportation  & Public Facilities                                                               
(DOT&PF) or local authorities to decide.                                                                                        
                                                                                                                                
8:21:09 AM                                                                                                                    
                                                                                                                                
MR.  FISK responded  that  he thinks  that's a  good  point.   He                                                               
offered his  understanding that  other states  have chosen  to do                                                               
something similar  to that.   One concern, however, would  be not                                                               
to set  up "a patchwork  of different  regulations."  He  said he                                                               
doesn't  think  the  sponsor  would   take  issue  with  allowing                                                               
municipalities the latitude to figure  out which particular areas                                                               
within a town could be designated as low-speed vehicle areas.                                                                   
                                                                                                                                
8:22:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG clarified that  he is only talking about                                                               
the speed limit, not the specifications for the vehicles.                                                                       
                                                                                                                                
8:22:28 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  stated the  reason for having  a minimum  speed for                                                               
the low-speed vehicles  is to keep them within a  flow of traffic                                                               
for  safety reasons.    He suggested  that  if local  governments                                                               
didn't  set limits,  the  result could  be  dangerous, because  a                                                               
vehicle with a maximum speed of  25 miles could be operating on a                                                               
55 mph road.                                                                                                                    
                                                                                                                                
8:23:10 AM                                                                                                                    
                                                                                                                                
MR. FISK  replied that that's  a good  point.  He  indicated that                                                               
making  general   designations  are   good,  but   perhaps  local                                                               
municipalities  could  be allowed  to  make  some exceptions  for                                                               
safety  reasons.   He stated  that it  is not  the intent  of the                                                               
federal law to allow low-speed vehicles on a regular highway.                                                                   
                                                                                                                                
8:24:33 AM                                                                                                                    
                                                                                                                                
MR.  FISK told  the committee  that HB  403 would  have a  fiscal                                                               
note, which  he has not yet  received, but which would  amount to                                                               
approximately   $10,000    for   licensing,    development,   and                                                               
programming.   He  said  the bill  would be  heard  by the  House                                                               
Transportation   Standing  Committee   and   the  House   Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
8:24:42 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  informed Mr. Fisk  that the  fiscal note is  in the                                                               
committee packet.                                                                                                               
                                                                                                                                
8:24:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAMRAS noted  that  in colder  climates, such  as                                                               
Fairbanks, it is  a requirement to "remove all  ... batteries and                                                               
store them  in a warm ...  garage or heated space  throughout the                                                               
winter, otherwise they freeze and you  lose all their value."  He                                                               
said he had to pay extra to  get gas-powered golf carts.  He said                                                               
he  supports the  notion of  the  bill, but  since the  low-speed                                                               
vehicles  will be  licensed  by the  DMV, he  would  like to  see                                                               
something that is applicable across the  state.  He added that he                                                               
wants to ensure Fairbanks can  have [a low-speed vehicle] that is                                                               
street legal,  and the  way the bill  is presently  drafted, that                                                               
would not be possible.                                                                                                          
                                                                                                                                
8:28:11 AM                                                                                                                    
                                                                                                                                
MR.  FISK said,  "This is  part of  ... why  it was  important to                                                               
change  the designation  from neighborhood  electric vehicles  to                                                               
low-speed vehicles."   He  indicated that  he thinks  [Version F]                                                               
would help alleviate Representative Ramras' concerns.                                                                           
                                                                                                                                
8:29:21 AM                                                                                                                    
                                                                                                                                
MR. FISK, in response to  a question from Representative Gardner,                                                               
said  there are  no 4-wheel  drive low-speed  vehicles currently,                                                               
and he doesn't know how they would perform on hills.                                                                            
                                                                                                                                
8:29:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  asked  Mr.   Fisk  if  there  are  any                                                               
features in  any other related state  laws that he would  like to                                                               
see incorporated in HB 403.                                                                                                     
                                                                                                                                
8:30:36 AM                                                                                                                    
                                                                                                                                
MR. FISK said  he has skimmed through some of  the regulations of                                                               
the 36  states that  have legalized  this mode  of transportation                                                               
thus  far,   and  he   agreed  to   show  those   regulations  to                                                               
Representative Gruenberg.                                                                                                       
                                                                                                                                
8:31:28 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  reviewed the  changes made in  Version F  for those                                                               
who did not have a copy.                                                                                                        
                                                                                                                                
8:32:14 AM                                                                                                                    
                                                                                                                                
DUANE BANNOCK,  Director, Office of the  Director, Division Motor                                                               
Vehicles, Department  of Administration, testified in  support of                                                               
HB 403.   He said some  vehicles that are branded  by the federal                                                               
government  as  being  a  different type  of  motor  vehicle  are                                                               
currently not  covered under  state statute.   He  indicated that                                                               
[HB 403] would  be one way for  the DMV to "play a  little bit of                                                               
catch-up."   He said the DMV  does not involve itself  in vehicle                                                               
usage, but  only in  the title and  registration of  the vehicle.                                                               
Mr.  Bannock mentioned  Global Electric  Motorcars ("GEM  cars").                                                               
He  said  every  vehicle  comes  with what  is  called  either  a                                                               
manufacturer's  certificate  of  origin (MCO)  or  manufacturer's                                                               
statement of origin  (MSO).  He read  the MSO for the  GEM car as                                                               
follows:     "This   low-speed   vehicle   conforms  to   federal                                                               
regulations, under  ... Title 49, CFR,  part 571.500.  It  is our                                                               
opinion  that  this ...  bill  will  allow  our statute  to  then                                                               
respect  that this  MSO  is now  a  welcome MSO  at  the DMV,  no                                                               
different for a Ford Mustang or something like that."                                                                           
                                                                                                                                
CHAIR  SEATON asked  if  the  DMV would  have  any problems  with                                                               
adding the  low-speed vehicle to  the rest of vehicles  which are                                                               
charged $100 biannually.                                                                                                        
                                                                                                                                
8:35:11 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK  answered that the  DMV concurs entirely  with adding                                                               
that  fee.   In  response  to  a  follow-up question  from  Chair                                                               
Seaton, he  said the DMV  also has no concern  regarding removing                                                               
the word "electric."                                                                                                            
                                                                                                                                
8:35:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked Mr. Bannock if  he would anticipate                                                               
that  in  terms  of  licensing and  registration  of  [low-speed]                                                               
vehicles, the dealer would be  responsible, even if he/she is not                                                               
an automobile dealer under normal circumstances.                                                                                
                                                                                                                                
8:36:11 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK answered, "If it was a dealer transaction, yes."                                                                    
                                                                                                                                
8:36:22 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked if  someone who  sells four-wheelers  or snow                                                               
machines  is under  the  same business  license  definition as  a                                                               
[car] dealer.                                                                                                                   
                                                                                                                                
8:36:44 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK answered, "I'm pretty sure no."                                                                                     
                                                                                                                                
8:37:24 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON clarified  that he  wants  to know  if someone  who                                                               
currently  deals in  "Hondas and  four-wheelers -  those kind  of                                                               
things" -  would be prevented from selling [low-speed vehicles].                                                                
                                                                                                                                
8:38:08 AM                                                                                                                    
                                                                                                                                
MR.  BANNOCK responded  specifically to  the Honda  example.   He                                                               
said  that beside  cars, Honda  sells motorcycles,  snow blowers,                                                               
lawn  mowers, and  4-wheelers.   In Alaska,  he said,  motorcycle                                                               
dealers are  a different type  of automobile dealer.   He stated,                                                               
"So, if  you were the Honda  dealer and you sold  the arrangement                                                               
between  4-wheelers  and lawnmowers  -  the  fact that  you  sold                                                               
motorcycles would  require you  to be  [an] automobile  dealer of                                                               
motorcycles in Alaska."                                                                                                         
                                                                                                                                
8:38:33 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked, "Let's  say you did  not sell  motorcycles -                                                               
you just sold all the other  kinds of snowmobiles and all - would                                                               
you then have to become an  automobile dealer in order to be able                                                               
to sell these low-speed electric vehicles?"                                                                                     
                                                                                                                                
MR. BANNOCK answered yes.                                                                                                       
                                                                                                                                
CHAIR  SEATON asked,  "Then when  you  became a  dealer, ...  you                                                               
would be required  to do the title and registration,  and ... you                                                               
wouldn't have to be a business  partner, you could still take the                                                               
information  and send  that information  into the  DMV.   Is that                                                               
correct?"                                                                                                                       
                                                                                                                                
MR. BANNOCK answered in the affirmative.                                                                                        
                                                                                                                                
8:39:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  directed  attention to  Section  4  of                                                               
version F.   He  asked Mr.  Bannock if he  sees any  advantage in                                                               
simply  referencing federal  law rather  than "listing  all these                                                               
things out in the state law."  He offered an example.                                                                           
                                                                                                                                
8:40:52 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK replied that there is serious merit to that idea.                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG  noted that  [Mr. Fisk] was  nodding and                                                               
smiling.                                                                                                                        
                                                                                                                                
8:41:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  asked  if  the department  has  ever  been                                                               
contacted regarding taking 4-wheelers "out  of the ditches and on                                                               
to the  highway," providing they meet  certain requirements, such                                                               
as turn signals and lighting.                                                                                                   
                                                                                                                                
8:41:34 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK  answered yes.   However, he said he  doesn't believe                                                               
HB  403  addresses that  situation,  nor  would he  support  that                                                               
proposal.                                                                                                                       
                                                                                                                                
8:42:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO said  he has  heard people  say they  think                                                               
that would be a good idea, because  then they could go to work on                                                               
a  4-wheeler  that only  costs  $6,000  instead of  [a  low-speed                                                               
vehicle] that costs $15,000.  He asked what the opposition is.                                                                  
                                                                                                                                
8:42:17 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK  said he owns a  relatively new Honda 4-wheeler.   On                                                               
the MSO  is written a warning  that the 4-wheeler is  not for use                                                               
on any roads or highways.  He stated  that the DMV banks a lot on                                                               
the manufacturer's recommendation of a particular product.                                                                      
                                                                                                                                
8:44:35 AM                                                                                                                    
                                                                                                                                
LIEUTENANT  JAMES A.  HELGOE,  Legislative  Liaison, Division  of                                                               
Alaska  State Troopers,  Department  of Public  Safety (DPS),  in                                                               
response to  a question  from Chair Seaton,  said he  agrees with                                                               
the  limitation  in  the   proposed  legislation  that  low-speed                                                               
vehicles may  not be  operated on  a highway  that has  a maximum                                                               
speed of more than 35 mph.   He expressed agreement with the idea                                                               
of allowing municipalities to set  other limits, but not if those                                                               
limits exceed the 35 mph hour restriction.                                                                                      
                                                                                                                                
8:46:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO  noted that  some roads  change from  35, to                                                               
45,  to 55  mph, within  100 yards.   If  low-speed vehicles  are                                                               
allowed on a  road that starts out at 35  mph and then increases,                                                               
Representative  Gatto  said he  feels  "they're  mixing with  the                                                               
heavies."                                                                                                                       
                                                                                                                                
8:47:04 AM                                                                                                                    
                                                                                                                                
LT. HELGOE said he sees this  issue as a concern in certain areas                                                               
within the state.                                                                                                               
                                                                                                                                
8:47:42 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  stated his understanding of  the bill is that  if a                                                               
person operating a  low-speed vehicle is in an area  with a speed                                                               
limit above 35,  he/she would not legally be able  to operate the                                                               
vehicle  in that  area.   He  asked  Mr. Helgoe  if  that is  his                                                               
understanding, as well.                                                                                                         
                                                                                                                                
8:48:21 AM                                                                                                                    
                                                                                                                                
MR. HELGOE answered yes.                                                                                                        
                                                                                                                                
8:48:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG  asked   for  Mr.   Helgoe's  feedback                                                               
regarding who should  decide the limits - the  local authority or                                                               
the  state legislature.    He  noted that  some  areas have  bike                                                               
paths,  and municipalities  may want  to set  rules to  keep low-                                                               
speed vehicles off of them.                                                                                                     
                                                                                                                                
8:49:29 AM                                                                                                                    
                                                                                                                                
MR.  HELGOE  stated  his belief  that  the  local  municipalities                                                               
should have the authority to  "regulate the use" and "that should                                                               
not be written  into state law."  In response  to a question from                                                               
Representative  Gruenberg,  he  offered  his  understanding  that                                                               
DOT&PF sets the speed limits for  the Parks Highway.  In response                                                               
to  a  follow-up question  from  Representative  Gruenberg as  to                                                               
whether or  not DOT&PF or  the legislature should set  limits, he                                                               
said that is beyond his expertise to offer an answer.                                                                           
                                                                                                                                
8:52:16 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON clarified:                                                                                                         
                                                                                                                                
     What is  being asked  here is:   Do  you think  that we                                                                    
     should  allow  these  vehicles and  allow  them  to  be                                                                    
     operated on  roads within municipal  jurisdictions that                                                                    
     are above  35 mph?  That's  the question.  If  we don't                                                                    
     set it  in statute,  it means that  local jurisdictions                                                                    
     can either ...  not [make] any designation  or [make] a                                                                    
     designation of 55 mph ....   And I thought your earlier                                                                    
     comment was  [that] for safety reasons  they should not                                                                    
     be allowed to mix with traffic on roads above 35 mph.                                                                      
                                                                                                                                
8:53:03 AM                                                                                                                    
                                                                                                                                
LT.  HELGOE  answered that's  correct.    He  stated, "I  do  not                                                               
believe  these low-speed  vehicles  should be  commingled in  any                                                               
roadway with a speed limit above  35 mph, and further I feel that                                                               
we  should allow  the local  ... municipalities  to set  up areas                                                               
that  they deem  safe for  the operation  and commingle  of these                                                               
vehicles."                                                                                                                      
                                                                                                                                
8:53:41 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  said, "But the  question is should they  be allowed                                                               
to set a  speed limit above 35 mph, or  should that be permissive                                                               
that they could  set areas that could be designated  and at lower                                                               
speeds.  But, I  mean, the question is:  Should  we remove the 35                                                               
mph from the  statute, which would allow  ... local jurisdictions                                                               
to set 45 or 50 mph?"                                                                                                           
                                                                                                                                
8:53:53 AM                                                                                                                    
                                                                                                                                
LT HELGOE responded, "No, I believe 35 should stay in."                                                                         
                                                                                                                                
8:54:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO asked  if a  low-speed vehicle  licensed by                                                               
the  state would  be  violating  the law  by  operating "off  the                                                               
pavement" with four-wheelers, for example.                                                                                      
                                                                                                                                
8:54:33 AM                                                                                                                    
                                                                                                                                
LT. HELGOE answered no.                                                                                                         
                                                                                                                                
8:54:55 AM                                                                                                                    
                                                                                                                                
JACK  CANELLI, Legal  Council and  Regulatory Specialist,  Global                                                               
Electric  Motor Cars,  told the  committee  that he  manufactures                                                               
electric low-speed vehicles in Fargo,  North Dakota.  In response                                                               
to  a question  from Representative  Gruenberg, he  said what  he                                                               
would recommend has already been  touched upon, which is adopting                                                               
federal  standards by  reference.   In  response  to a  follow-up                                                               
question from  Representative Gruenberg, he said  he would e-mail                                                               
suggested language to  the sponsor.  Regarding  the previous talk                                                               
of deferring  the decision to  the local municipalities,  he told                                                               
the committee  that the  vast majority of  states have  had their                                                               
legislatures   define  the   [low-speed  vehicles]   and  set   a                                                               
restriction that they be allowed  on streets with speed limits of                                                               
35  mph  or  less.    Then,  he  said,  some  states  give  local                                                               
jurisdictions  the ability  to set  further  restrictions in  the                                                               
interest  of  public  safety.     He  said  he  would  not  allow                                                               
municipalities  to  set  limits  higher  than  that  set  by  the                                                               
legislature.                                                                                                                    
                                                                                                                                
8:57:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  noted  that  in  Juneau,  one  of  the                                                               
streets connecting one  area of Juneau to the rest  of Juneau has                                                               
variable speed limits.  He asked  Mr. Canelli for his thoughts on                                                               
that subject.                                                                                                                   
                                                                                                                                
8:58:30 AM                                                                                                                    
                                                                                                                                
MR.  CANELLI said  low-speed vehicle  owners would  know that  if                                                               
they are on a 40 mph street they are not operating legally.                                                                     
                                                                                                                                
8:59:34 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON,  in response  to  a  question from  Representative                                                               
Lynn, noted  that [lines 15-18]  on page  2 address the  issue of                                                               
crossing a street  with a speed limit  of more than 35  mph.  The                                                               
language read as follows:                                                                                                       
                                                                                                                                
     Notwithstanding  this  subsection,  the operator  of  a                                                                    
     low-speed  vehicle  may  cross  a highway  that  has  a                                                                    
     maximum speed  limit of more  than 35 miles an  hour if                                                                    
     the  crossing  is  made  at  the  intersection  with  a                                                                    
     highway that is authorized for low-speed vehicles.                                                                         
                                                                                                                                
8:59:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  recalled Representative  Ramras' previous                                                               
comments  about  operating  certain   vehicles  in  extreme  cold                                                               
climates.   She  noted that  Mr.  Canelli's company  is in  North                                                               
Dakota  and asked  him to  tell the  committee how  the company's                                                               
low-speed vehicles work in cold temperatures.                                                                                   
                                                                                                                                
9:00:31 AM                                                                                                                    
                                                                                                                                
MR. CANELLI  said low-speed vehicles  are generally not  made for                                                               
cold weather;  his company's standard  version doesn't  even have                                                               
doors on  it, although they  are available.   He noted  that they                                                               
can be run indoors in such places  as a sports stadium or a large                                                               
warehouse.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  GARDNER  asked  if the  low-speed  vehicle  would                                                               
actually function in cold weather.                                                                                              
                                                                                                                                
9:02:09 AM                                                                                                                    
                                                                                                                                
MR. CANELLI said he can't answer that question.                                                                                 
                                                                                                                                
9:02:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG noted that  the driving force behind the                                                               
bill  -  Representative Thomas'  constituent  from  Skagway -  is                                                               
available to testify.                                                                                                           
                                                                                                                                
9:03:05 AM                                                                                                                    
                                                                                                                                
ED  IBBOTSON, testifying  on behalf  of  himself, said  low-speed                                                               
vehicles are  not made for  every application; they are  made for                                                               
the person  who needs to  run down to  the grocery store  or post                                                               
office a  couple times a  week, but  doesn't want the  expense of                                                               
maintaining a  gasoline-powered vehicle.  Regarding  the issue of                                                               
commingling  vehicles,  he pointed  out  that  there are  already                                                               
scooters on the streets with  bigger vehicles.  Mr. Ibbotson said                                                               
the instigator  for the bill was  his desire to run  a car rental                                                               
business  for tourists,  which is  when he  found out  that [low-                                                               
speed] vehicles are  not legal in Alaska.  He  stated that he has                                                               
heard  from locals  in Skagway  who think  the vehicles  would be                                                               
ideal for their town.                                                                                                           
                                                                                                                                
9:05:23 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON moved Conceptual Amendment 1 as follows:                                                                           
                                                                                                                                
     On page 2, line 20:                                                                                                        
          Delete paragraph (27)                                                                                                 
         Insert the definition of low-speed vehicle as                                                                          
     found in federal law                                                                                                       
                                                                                                                                
9:05:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAMRAS  objected for  purposes of discussion.   He                                                               
asked if  the federal definition includes  a gas-powered vehicle,                                                               
or if it only applies to electric vehicles.                                                                                     
                                                                                                                                
9:05:59 AM                                                                                                                    
                                                                                                                                
MR. FISK stated that the  federal regulations do not specify that                                                               
the low-speed vehicle is an electric one.                                                                                       
                                                                                                                                
9:06:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAMRAS, regarding  his  previous statement  about                                                               
requirements  for  cold  climates,  stated for  the  record  that                                                               
nobody is intending to ride  a low-speed vehicle in December when                                                               
it's 30 degrees below zero.  He removed his objection.                                                                          
                                                                                                                                
9:06:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER objected  for discussion  purposes.   She                                                               
said  she  thinks  the  distinction   between  electric  and  gas                                                               
vehicles  is partly  one of  noise.   She said  she is  concerned                                                               
about allowing something that may be loud.                                                                                      
                                                                                                                                
9:07:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  noted  that nonelectric  vehicles  include                                                               
those run  on propane, which he  indicated are quiet.   He said a                                                               
"two cycle go-cart with no muffler is pretty potent."                                                                           
                                                                                                                                
9:07:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  responded, "Do  we want to  approve those                                                               
for our ... neighborhoods?"                                                                                                     
                                                                                                                                
9:08:49 AM                                                                                                                    
                                                                                                                                
MR.  CANELLI,  in  response to  a  question  from  Representative                                                               
Gruenberg,  said  the  federal  regulations allow  both  gas  and                                                               
electric; however, he is not  currently aware of any gas-powered,                                                               
low-speed vehicles other  than perhaps a John  Deere Gator, which                                                               
he said is not an on-road vehicle.                                                                                              
                                                                                                                                
9:09:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER removed her objection.                                                                                   
                                                                                                                                
CHAIR  SEATON  asked  if  there  was  any  further  objection  to                                                               
Conceptual Amendment 1.  There being none, it was so ordered.                                                                   
                                                                                                                                
9:09:35 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  moved to adopt  Conceptual Amendment 2, on  page 2,                                                               
line  18,  after  "vehicles."  to  add  language  allowing  local                                                               
jurisdictions to further regulate for safety concerns.                                                                          
                                                                                                                                
9:09:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  objected for  discussion purposes.   He                                                               
said  he  thinks  Conceptual  Amendment  2  may  not  be  totally                                                               
necessary, because that  may be assumed under  existing state law                                                               
anyway.    He asked  Chair  Seaton  to  make  it clear  that  the                                                               
amendment is requested,  but doesn't have to be  inserted if it's                                                               
not necessary.                                                                                                                  
                                                                                                                                
CHAIR  SEATON  said  the Co-Chair  of  the  House  Transportation                                                               
Standing Committee - the next  committee of referral - can choose                                                               
to remove the language if it's not necessary.                                                                                   
                                                                                                                                
9:10:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG removed his objection.                                                                                 
                                                                                                                                
CHAIR  SEATON  asked  if  there  was  any  further  objection  to                                                               
Conceptual Amendment 2.  There being none, it was so ordered.                                                                   
                                                                                                                                
9:10:43 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON closed public testimony.                                                                                           
                                                                                                                                
9:11:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG stated  his  assumption  that with  the                                                               
removal of  language through the adopted  Conceptual Amendment 1,                                                               
there  is  no  longer  a  need for  concern  regarding  the  term                                                               
"electric motor vehicle" because that language will be removed.                                                                 
                                                                                                                                
CHAIR SEATON confirmed that is correct.                                                                                         
                                                                                                                                
9:11:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  moved  to  report CSHB  403,  Version  24-                                                               
LS1229\F, Luckhaupt,  2/22/06, as amended, out  of committee with                                                               
individual  recommendations  and  the accompanying  fiscal  note.                                                               
There being no  objection, CSHB 403(STA) was reported  out of the                                                               
House State Affairs Standing Committee.                                                                                         
                                                                                                                                

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