Legislature(2005 - 2006)BUTROVICH 205

04/27/2006 01:30 PM Senate TRANSPORTATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 266 VEHICLE WEIGHTS AND INSURANCE TELECONFERENCED
Moved CSHB 266(FIN) Out of Committee
+= HB 403 NEIGHBORHOOD ELECTRIC VEHICLES TELECONFERENCED
Moved SCS CSHB 403(TRA) Out of Committee
Bills Previously Heard/Scheduled
             HB 403-NEIGHBORHOOD ELECTRIC VEHICLES                                                                          
                                                                                                                              
1:57:15 PM                                                                                                                    
CHAIR HUGGINS announced CSHB 403 to be up for consideration.                                                                    
                                                                                                                                
SENATOR COWDERY moved to adopt CSHB 403, Version L.                                                                             
                                                                                                                                
IAN FISK, Staff to Representative Bill Thomas, explained that                                                                   
the House Finance Committee sent the wrong version of the bill                                                                  
to the floor after it passed House Finance and no one noticed                                                                   
until it had been voted on. He said the simplest way to correct                                                                 
it is to adopt work draft L, which reflects the changes House                                                                   
Finance made, and take it from there. Naturally, it will have to                                                                
go back to the House for concurrence.                                                                                           
                                                                                                                                
He said that the bill deals with Low-Speed Vehicles (LSV), also                                                                 
known as neighborhood electric vehicles. The federal definition                                                                 
of low-speed vehicles recognizes that some of this class of                                                                     
vehicle can be powered by means other than electricity, such as                                                                 
propane. He pointed out that he was not talking about golf                                                                      
carts, but a class of vehicle that has to meet a number of                                                                      
federal standards similar to a regular vehicle. They have to                                                                    
have headlights, taillights, brake lights, emergency brakes,                                                                    
automotive quality glass windshield, bumpers, etceteras, and                                                                    
have to pass a federal safety-testing program. These vehicles                                                                   
are required to be able to travel between 20-25 mph and are not                                                                 
allowed to travel on roads with a speed limit greater than 35                                                                   
mph. They are legal in 35 states and are popular in gated                                                                       
communities and quiet neighborhoods.                                                                                            
                                                                                                                                
MR. FISK said that a constituent who wants to open a dealership                                                                 
for these vehicles approached Representative Thomas, because the                                                                
Department of Motor Vehicles does not currently allow their                                                                     
registration and licensing.                                                                                                     
                                                                                                                                
2:00:27 PM                                                                                                                    
He pointed out that one of the things the House has been working                                                                
on is the definition of these vehicles. The definition in work                                                                  
draft L is "a vehicle that has four wheels and an unladen weight                                                                
of 2500 lbs or less." The problem with it is that the vehicles                                                                  
are evolving and the federal standard has already been changed                                                                  
up to 3000 lbs; so, it is probably best to go with a definition                                                                 
that tracks federal law.                                                                                                        
                                                                                                                                
2:02:02 PM                                                                                                                    
SENATOR COWDERY asked if these vehicles require seatbelts.                                                                      
                                                                                                                                
MR. FISK answered yes.                                                                                                          
                                                                                                                                
SENATOR COWDERY speculated that they might get in the way of                                                                    
heavy vehicles in neighborhoods and present a hazard. He asked                                                                  
if they could use bike trails.                                                                                                  
                                                                                                                                
MR. FISK responded that they are not appropriate for bike trails                                                                
and that they should not be a hazard for neighborhood use.                                                                      
                                                                                                                                
2:03:13 PM                                                                                                                    
SENATOR COWDERY asked  if there are currently  any dealerships in                                                               
Alaska that sell these vehicles.                                                                                                
                                                                                                                                
MR. FISK said he is not aware of any.                                                                                           
                                                                                                                                
SENATOR COWDERY asked  if the safety factors on  this vehicle are                                                               
lower than on a standard vehicle.                                                                                               
                                                                                                                                
MR. FISK said to his knowledge  they do not have airbags, but the                                                               
manufacturer would have more information on that.                                                                               
                                                                                                                                
SENATOR COWDERY asked if they have doors, or are an open golf-                                                                  
cart type of vehicle.                                                                                                           
                                                                                                                                
MR. FISK said that  most of them do have doors,  but they are not                                                               
required  to  by federal  safety  standards.  The Alaskan  market                                                               
would probably demand them.                                                                                                     
                                                                                                                                
2:05:07 PM                                                                                                                    
SENATOR COWDERY  pointed out  that heavy  vehicles such  as SUV's                                                               
and garbage  trucks do  go into  neighborhoods and  asked whether                                                               
they have been collision tested.                                                                                                
                                                                                                                                
MR. FISK answered  that he is not certain whether  they have been                                                               
subjected  to  crash  tests,  but   speculated  that  they  would                                                               
probably be safer than a moped or motorcycle, which are legal.                                                                  
                                                                                                                                
SENATOR COWDERY  asked what is the  range of time they  could run                                                               
before requiring a recharge.                                                                                                    
                                                                                                                                
MR. FISK  responded that he  is not sure  and would defer  to Mr.                                                               
Canelli on that.                                                                                                                
                                                                                                                                
CHAIR HUGGINS said he visualizes a small tourist vehicle.                                                                       
                                                                                                                                
MR. FISK agreed.                                                                                                                
                                                                                                                                
2:07:19 PM                                                                                                                    
CHAIR  HUGGINS  said  that  it appears  this  will  initially  be                                                               
primarily for commercial use.                                                                                                   
                                                                                                                                
MR. FISK said  that he believes they will have  both personal and                                                               
commercial uses.                                                                                                                
                                                                                                                                
DUANE BANNOCK,  Division of Motor Vehicles,  testified in support                                                               
of the  bill. He said  that, under existing Alaska  Statutes that                                                               
define a  motor vehicle, it  is easy  to confuse the  title "Low-                                                               
Speed Vehicle" with a verb. This  is not a Lamborghini that won't                                                               
get out  of first gear;  it is a vehicle  that is designed  for a                                                               
specific  purpose, so  LSV is  actually  a noun.  In Alaska,  the                                                               
Division  of Motor  Vehicles  has the  authority  to license  and                                                               
title motor  vehicles; and  when it issues  that title,  it means                                                               
that vehicle can  go anywhere it wants to on  the road. Without a                                                               
separate  classification  within   Alaska  statutes,  DMV  cannot                                                               
register an LSV. This bill recognizes  what an LSV is, as defined                                                               
in  the federal  statutes, and  gives  the DMV  the authority  to                                                               
collect the registration  fees and issue a  special license plate                                                               
for it.                                                                                                                         
                                                                                                                                
2:09:35 PM                                                                                                                    
MR. BANNOCK said that he brought  with him the 54-page summary of                                                               
the federal definition of the LSV; and doors are not required.                                                                  
                                                                                                                                
MR.  FISK pointed  out  that on  page 3,  lines  9-11, the  House                                                               
Finance Committee  added an opt-in provision  for municipalities,                                                               
which  reads: "  A person  may  not operate  a low-speed  vehicle                                                               
within  a municipality  unless that  municipality has  adopted an                                                               
ordinance  allowing  the use  of  low-speed  vehicles within  its                                                               
jurisdiction."  If the  municipality opts  to allow  licensing of                                                               
LSV's, lines 12-13  allow it to further restrict the  use of them                                                               
within their jurisdiction.                                                                                                      
                                                                                                                                
CHAIR HUGGINS said that some  communities have shown a little bit                                                               
of concern and resistance to this bill.                                                                                         
                                                                                                                                
MR. FISK replied that he has  not heard from any communities with                                                               
concerns about it.                                                                                                              
                                                                                                                                
CHAIR  HUGGINS  asked  Mr. Braddock  whether  this  presents  any                                                               
difficulty from a licensing standpoint.                                                                                         
                                                                                                                                
MR.  BRADDOCK  answered  no.  He  did  caution  that,  under  the                                                               
proposed amendment,  a person  could buy  one of  these vehicles,                                                               
register and license  it, then find that he cannot  use it in his                                                               
municipality.                                                                                                                   
                                                                                                                                
CHAIR HUGGINS recognized Michael Catsi.                                                                                         
                                                                                                                                
2:13:09 PM                                                                                                                    
MICHAEL   CATSI,   Executive    Director,   Skagway   Development                                                               
Corporation  (SDC) testified  in  support of  the  bill with  the                                                               
exception of  Section 4(C)(1).  He said  that the  SDC originally                                                               
approached  Representative   Thomas  about  getting   this  bill,                                                               
because  one of  its  clients in  Skagway would  like  to open  a                                                               
dealership and rental  facility. He said that he  does have issue                                                               
with  the  opt-in Section  4(C)(1),  and  thinks  it would  be  a                                                               
nightmare for any  potential business owner who wants  to start a                                                               
dealership, to  have to contact  every municipality in  the state                                                               
and ask them to pass  an ordinance allowing them. Because Section                                                               
4(C)(2)  allows municipalities  to  further restrict  the use  of                                                               
these vehicles in their jurisdiction;  it does not seem necessary                                                               
to provide an opt-in provision.                                                                                                 
                                                                                                                                
2:17:00 PM                                                                                                                    
MR. FISK  agreed that  Mr. Catsi  has a good  point. He  said the                                                               
concern was  brought up  in House  Finance and  they compromised,                                                               
but  he doesn't  think the  sponsor would  have any  objection to                                                               
heeding Mr. Catsi's concern.                                                                                                    
                                                                                                                                
CHAIR HUGGINS  noted that the change  could kill the bill  if the                                                               
House does not agree with it  and asked the committee members how                                                               
they felt about it.                                                                                                             
                                                                                                                                
MR. BANNOCK responded that, if  the amended version were to pass,                                                               
the DMV  would immediately send  notification to  every organized                                                               
government  in Alaska  to let  them know  of the  change. From  a                                                               
licensing standpoint, he  is not looking forward  to dealing with                                                               
an angry  customer who has paid  $250 to register a  vehicle that                                                               
he can't use.                                                                                                                   
                                                                                                                                
SENATOR COWDERY said  that there was a bill  before the committee                                                               
a couple of years ago  related to personal electric vehicles, and                                                               
asked whether this bill involves them in any way.                                                                               
                                                                                                                                
MR. BANNOCK  replied that  it does not.  The statute  that passed                                                               
previously  was  specific  to the  SegWay  two  wheeled,  upright                                                               
vehicles.                                                                                                                       
                                                                                                                                
MR.  FISK interjected  that he  thinks the  sponsor would  prefer                                                               
that any changes be made in the current committee.                                                                              
                                                                                                                                
SENATOR  KOOKESH said  that it  would be  better to  adopt it  as                                                               
presented, because any change would have  to go back to the House                                                               
for concurrence.                                                                                                                
                                                                                                                                
CHAIR HUGGINS said he thinks Senator Kookesh is right.                                                                          
                                                                                                                                
2:21:14 PM                                                                                                                    
SENATOR COWDERY said that they are running out of time.                                                                         
                                                                                                                                
MR. FISK pointed  out that, because of the  clerical mistake made                                                               
by  the staff,  the  bill  will have  to  go through  concurrence                                                               
anyway, to reflect the changes House Finance made.                                                                              
                                                                                                                                
CHAIR HUGGINS moved  to amend the bill by deleting  lines 9-11 on                                                               
page 3. There being no objection, the motion carried.                                                                           
                                                                                                                                
SENATOR KOOKESH asked if any language needed to be added.                                                                       
                                                                                                                                
MR.  FISK said  no,  that only  the definition  is  still on  the                                                               
table.                                                                                                                          
                                                                                                                                
2:22:43 PM                                                                                                                    
SENATOR FRENCH said he expected to  get some language to link the                                                               
definition  to  federal  standards  and asked  if  Mr.  Fisk  has                                                               
suggested language for that.                                                                                                    
                                                                                                                                
MR. FISK responded  yes, it could be amended to  say that a "low-                                                               
speed vehicle has the meaning given to it in federal law."                                                                      
                                                                                                                                
SENATOR FRENCH asked  if that is meant to replace  or augment the                                                               
definition on page 3, lines 15-19.                                                                                              
                                                                                                                                
MR. FISK replied that it would replace that language.                                                                           
                                                                                                                                
SENATOR FRENCH asked if Mr. Fisk had language typed up.                                                                         
                                                                                                                                
MR.  FISK  replied  that  it   would  have  to  be  a  conceptual                                                               
amendment.                                                                                                                      
                                                                                                                                
2:24:32 PM                                                                                                                    
JACK  CANELLI, Legal  Counsel and  Regulatory Specialist,  Global                                                               
Electric  Motorcars,  testified  in   support  of  the  bill.  He                                                               
commented  that he  would like  to see  clarification in  Section                                                               
4(b) that  the vehicles are  allowed to cross  a road that  has a                                                               
speed  limit of  over 35  mph  and stressed  that these  vehicles                                                               
accelerate  quite  well,  so  crossing  intersections  is  not  a                                                               
problem.                                                                                                                        
                                                                                                                                
CHAIR  HUGGINS advised  Mr. Canelli  that the  bill does  contain                                                               
that provision.                                                                                                                 
                                                                                                                                
MR. CANELLI responded that he had not read it that way.                                                                         
                                                                                                                                
CHAIR  HUGGINS  assured him  that  it  does  allow just  what  he                                                               
suggested.                                                                                                                      
                                                                                                                                
MR. CANELLI  agreed with the  other amendments the  committee has                                                               
made.                                                                                                                           
                                                                                                                                
2:28:15 PM                                                                                                                    
CHAIR HUGGINS asked what is happening in other states.                                                                          
                                                                                                                                
MR. CANELLI said that most  states have adopted federal standards                                                               
and do not include any weight limit in legislation.                                                                             
                                                                                                                                
CHAIR HUGGINS asked Mr. Bannock  if replacing the definition with                                                               
federal standards would create any licensing issues.                                                                            
                                                                                                                                
MR.  BANNOCK  said it  would  not  and  explained that  when  the                                                               
vehicle is  licensed, it  would simply  reflect that  the vehicle                                                               
meets federal standards.                                                                                                        
                                                                                                                                
SENATOR  COWDERY  asked  whether  liability  insurance  would  be                                                               
required on these vehicles.                                                                                                     
                                                                                                                                
MR. BANNOCK responded that it would be under this law.                                                                          
                                                                                                                                
SENATOR COWDERY  asked if it  would be  an honor system  like the                                                               
existing law.                                                                                                                   
                                                                                                                                
MR.   BANNOCK  said   that   everything   related  to   financial                                                               
responsibility would be the same as for a standard vehicle.                                                                     
                                                                                                                                
2:30:22 PM                                                                                                                    
SENATOR  COWDERY asked  what  is the  anticipated  cost of  these                                                               
vehicles and what kind of warranty will come with them.                                                                         
                                                                                                                                
MR.  CANELLI  said  they  have  six  models,  including:  a  two-                                                               
passenger for  roughly $6,000, and  a six-passenger model  for up                                                               
to $15,000.                                                                                                                     
                                                                                                                                
SENATOR COWDERY  commented that China  is very interested  in the                                                               
Alaskan market and  he has read that they  have standard vehicles                                                               
that get 35 mpg or better and cost $8,000-$12,000.                                                                              
                                                                                                                                
2:32:24 PM                                                                                                                    
CHAIR HUGGINS asked  Mr. Fisk and Mr. Braddock  whether there are                                                               
any other aspects of the bill  that should be changed in order to                                                               
make this bill acceptable to the House and to DMV.                                                                              
                                                                                                                                
MR. FISK said the concerns are covered.                                                                                         
                                                                                                                                
MR. BANNOCK said the DMV loves it.                                                                                              
                                                                                                                                
CHAIR HUGGINS said he would like to get the CS drafted today.                                                                   
                                                                                                                                
SENATOR  COWDERY  moved SCS  CSHB  403(TRA)  from committee  with                                                               
individual recommendations  and attached fiscal note.  Hearing no                                                               
objections, the motion carried.                                                                                                 
                                                                                                                                

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