Legislature(1997 - 1998)

02/25/1998 01:11 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
      HOUSE TRANSPORTATION STANDING COMMITTEE                                  
                 February 25, 1998                                             
                     1:11 p.m.                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative William K. (Bill) Williams, Chairman                            
Representative Beverly Masek, Vice Chair                                       
Representative John Cowdery                                                    
Representative Bill Hudson                                                     
Representative Jerry Sanders                                                   
Representative Kim Elton                                                       
Representative Albert Kookesh                                                  
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
All members present                                                            
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
* HOUSE BILL NO. 404                                                           
"An Act relating to the regulation of commercial vehicles; relating            
to the temporary registration of out-of-state commercial vehicles;             
relating to registration fees for commercial vehicles; and                     
providing for an effective date."                                              
                                                                               
     - MOVED CSHB 404 (TRA) OUT OF COMMITTEE                                   
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL: HB 404                                                                   
SHORT TITLE: REGULATION OF COMMERCIAL VEHICLES                                 
SPONSOR(S): TRANSPORTATION                                                     
                                                                               
Jrn-Date    Jrn-Page           Action                                          
02/12/98      2312     (H)  READ THE FIRST TIME - REFERRAL(S)                  
02/12/98      2312     (H)  TRANSPORTATION, FINANCE                            
02/25/98               (H)  TRA AT  1:00 PM CAPITOL 17                         
                                                                               
WITNESS REGISTER                                                               
                                                                               
PETE ECKLUND, Legislative Assistant                                            
  to Representative Williams                                                   
Alaska State Legislature                                                       
Capitol Building, Room 424                                                     
Juneau, Alaska  99801                                                          
Telephone:  (907) 465-3424                                                     
POSITION STATEMENT:  Testified on behalf of the Transportation                 
                     Committee on HB 404.                                      
                                                                               
JUANITA HENSLEY, Chief, Drivers Services                                       
Division of Motor Vehicles                                                     
Department of Administration                                                   
P.O. Box 20020                                                                 
Juneau, Alaska  99811                                                          
Telephone:  (907) 465-4361                                                     
POSITION STATEMENT:  Testified in support of HB 404.                           
                                                                               
DENNIS POSHARD, Legislative Liaison                                            
Office of the Commissioner                                                     
Department of Transportation and                                               
  Public Facilities                                                            
3132 Channel Drive                                                             
Juneau, Alaska  99801                                                          
Telephone:  (907) 465-3904                                                     
POSITION STATEMENT:  Testified in support of HB 404.                           
                                                                               
FRANK DILLON, Executive Vice President                                         
Alaska Trucking Association, Incorporated                                      
3443 Minnesota Drive                                                           
Anchorage, Alaska  99503                                                       
Telephone:  (907) 276-1149                                                     
POSITION STATEMENT:  Testified in support of HB 404.                           
                                                                               
MARK TABBUTT, General Manager                                                  
Totem Ocean Trailer Express                                                    
2511 Tidewater                                                                 
Anchorage, Alaska  99501                                                       
Telephone:  (907) 276-5868                                                     
POSITION STATEMENT:  Testified in support of HB 404.                           
                                                                               
PETER BLANAS Teamster's line driver                                            
427 West 87 Avenue                                                             
Anchorage, Alaska  99515                                                       
Telephone:  (907) 344-7887                                                     
POSITION STATEMENT:  Testified in support of HB 404.                           
                                                                               
BARBARA HUFF-TUCKNESS, Director                                                
Governmental and Legislative Affairs                                           
Teamster's Union Local 959                                                     
520 East Thirty Fourth Avenue                                                  
Anchorage, Alaska  99503                                                       
Telephone:  (907) 565-8200                                                     
POSITION STATEMENT:  Testified in support of HB 404.                           
                                                                               
LINDA LEARY, Vice President of Sales                                           
Carlile K&W Transport                                                          
1813 East First Avenue                                                         
Anchorage, Alaska  99501                                                       
Telephone:  (907) 276-7797                                                     
POSITION STATEMENT:  Testified in support of HB 404.                           
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-8, SIDE A                                                              
Number 0001                                                                    
                                                                               
CHAIRMAN WILLIAM K. (BILL) WILLIAMS called the House Transportation            
Standing Committee meeting to order at 1:11 p.m.  Members present              
at the call to order were Representatives Williams, Masek, Cowdery,            
Hudson, Sanders, Elton and Kookesh.                                            
                                                                               
HB 404 - REGULATION OF COMMERCIAL VEHICLES                                     
                                                                               
Number 0050                                                                    
                                                                               
CHAIRMAN WILLIAMS announced HB 404, "An Act relating to the                    
regulation of commercial vehicles; relating to the temporary                   
registration of out-of-state commercial vehicles; relating to                  
registration fees for commercial vehicles; and providing for an                
effective date," is before the House Transportation Standing                   
Committee.                                                                     
                                                                               
Number 0069                                                                    
                                                                               
PETE ECKLUND, Legislative Assistant to Chairman Williams, read the             
following sponsor statement into the record:                                   
                                                                               
"The purpose of HB 404 is to improve efficiency at Division of                 
Motor Vehicles (DMV) and to improve efficiency and safety of                   
freight movement into, out of, and within Alaska.  Also, adoption              
of HB 404 will allow the state to participate in the International             
Registration Plan of the trucking industry.                                    
                                                                               
"Our current state commercial vehicle inspection law is unworkable.            
The bill proposes to conform our inspection program with inspection            
criteria found in the Federal Motor Carrier Safety Regulations.                
                                                                               
"Also, HB 404 will increase temporary fees for out-of-state trucks             
that wish to operate in Alaska from $50 to $350.  This will bring              
Alaska fees closer to what is charged by other states and provinces            
issuing temporary permits.  Revenue generated from this fee may be             
appropriated by the legislature to operate weigh stations and                  
commercial vehicle safety programs.                                            
                                                                               
"Further, HB 404 would eliminate the requirement for annual                    
registration of commercial trailers.  The fees collected from the              
registration of commercial trailers would be transferred to the                
cost of registration of commercial vehicles, or 'power units.'                 
Hence the bill is revenue neutral.  The change is required if                  
Alaska wants to become part of the International Registration Plan,            
which allows for a simplified method of prorating fees to other                
jurisdictions in which Alaska commercial vehicles operate, and vice            
versa.  The state and industry will gain substantial efficiencies              
by not having to issue and physically tag over 20,000 commercial               
trailers annually.                                                             
                                                                               
"In short, HB 404 will create efficiencies in government and the               
private sector, and will create a safer transportation environment.            
The safer our commercial vehicles are on our highways, the safer               
all of us will be."                                                            
                                                                               
MR. ECKLUND informed the committee there are two amendments to be              
considered, LS1528\A.1 [2/20/98] and LS1528\A.3 [2/23/98].                     
                                                                               
Number 0395                                                                    
                                                                               
JUANITA HENSLEY, Chief, Division of Motor Vehicles, Department of              
Administration, testified before the committee.  She said, "We feel            
that it's going to be a real efficiency measure for the division as            
well as offering a lot of efficiency measures for industry as a                
whole in the state of Alaska."                                                 
                                                                               
Number 0422                                                                    
                                                                               
REPRESENTATIVE JOHN COWDERY said, "I've heard that, because we                 
don't have this in effect at their borders that there's many trucks            
that come over the highways into Alaska, but pay very little or no             
fees in competing with people who do."  He asked if that was a                 
fact.                                                                          
                                                                               
MS. HENSLEY replied it has been reported to her as well.  She said,            
"That there are, and I know that there are by the number of permits            
that are issued, vehicles that are crossing, coming into Alaska,               
that are not registered in Alaska and they're taking actually                  
employment away from our own truck drivers."                                   
                                                                               
REPRESENTATIVE COWDERY said some of them come through when the                 
scales are closed and do not even register.                                    
                                                                               
MS. HENSLEY said he should talk to someone in the DOT/PF because               
DOT/PF is responsible for the weight scales.                                   
                                                                               
Number 0514                                                                    
                                                                               
REPRESENTATIVE BEVERLY MASEK referred to page 8, line 23 through               
28, and asked how the fees were calculated in this section.                    
                                                                               
MS. HENSLEY replied, "What was considered for those fees is to take            
the number - the number was derived by dividing the current trailer            
revenue by the four truck classes, and then dividing the four equal            
amounts of the truck units per class.  So you take the number of               
trailers and the number of truck units, and it was a transfer of               
the fees from the trailers to the power units.  And that's how that            
was derived, it was basically an equal split across.  As close as              
equal as we could get. ... "                                                   
                                                                               
REPRESENTATIVE MASEK asked if those procedures were used in the                
past.                                                                          
                                                                               
MS. HENSLEY pointed out that it is a new concept.  She indicated               
Alaska and California are the only two states, that she is aware               
of, that use and register trailers.  The other states only register            
the power units and the fees are all attached to the power units.              
She said, "The problem in Alaska, and a lot of other states, the               
reason they've gone to that, is if we have a company that has ten              
trailers registered and eight power units, and they need the                   
registration of that unit - of the trailer runs out - and that                 
driver is in South Carolina, their plate on that trailer is                    
expired.  They could have problems coming back across the borders              
and coming in through Canada to get back in the United States.                 
With that trailer expired, it is so hard for our companies to track            
around all the trailers that they have to make sure that the little            
tab gets on that plate.  And this is basically going to be a real              
benefit to our industry."                                                      
                                                                               
Number 0690                                                                    
                                                                               
REPRESENTATIVE COWDERY indicated many trailers may be out-of-state             
for some time.  He said, "In Alaska, most of our things come from              
out-of-state, and we would like to keep that revenue..."  People               
that come from Canada should pay.                                              
                                                                               
Number 0791                                                                    
                                                                               
REPRESENTATIVE BILL HUDSON referred to page 8.  He assumed there is            
no effect on any of the other listed vehicle units like a tractor              
or ambulance.  He asked if they were under that weight, would there            
be any unintended increases for other units.                                   
                                                                               
MS. HENSLEY replied no, it is strictly for those that are                      
registered for commercial purposes.                                            
                                                                               
CHAIRMAN WILLIAMS asked if the increased rates were for out-of-                
state trucks, or in-state.                                                     
                                                                               
MS. HENSLEY replied these rates are strictly for those that are                
registered within the state of Alaska.  She said, "A company has a             
right, if they're operating in the state of Alaska, they can                   
register that vehicle in the state of Alaska to operate here and               
pay the commercial vehicle rates.  Those coming across that are not            
registered, in Alaska, these rates do not fall with those vehicles.            
Those have to pay the temporary registration plates that are in the            
other section of the law."                                                     
                                                                               
CHAIRMAN WILLIAMS asked what section.                                          
                                                                               
Number 0883                                                                    
                                                                               
MS. HENSLEY replied page 7, lines 10 through 14.                               
                                                                               
CHAIRMAN WILLIAMS asked what the fee currently is for a temporary              
permit.                                                                        
                                                                               
MS. HENSLEY replied $10 to $50, depending on the weight of the                 
vehicle.                                                                       
                                                                               
CHAIRMAN WILLIAMS as if that was the maximum fee the state could               
get.                                                                           
                                                                               
MS. HENSLEY replied yes.                                                       
                                                                               
REPRESENTATIVE HUDSON said, "For a commercial bus this would be                
like tour busses and things of this nature coming into Alaska.                 
That would also be an increase from $50 to $350.  Is that correct?"            
                                                                               
Number 0938                                                                    
                                                                               
MS. HENSLEY replied, "For those tour bus companies that choose not             
to register those vehicles in the state of Alaska, yes that would              
be the case.  Our tour industry, such as the Princess, Gray Line,              
Westours, all those, those vehicles are registered in the state of             
Alaska. ... So those individuals would not have to pay the $350,               
they would have to pay the fees for registering this commercial                
vehicle."                                                                      
                                                                               
REPRESENTATIVE HUDSON asked about how many of these do we look at              
on an annual basis that would fit the increased fee.                           
                                                                               
MS. HENSLEY deferred that question to the Department of                        
Transportation and Public Facilities.                                          
                                                                               
Number 1012                                                                    
                                                                               
DENNIS POSHARD, Legislative Liaison, Department of Transportation              
and Public Facilities (DOT/PF), pointed out the departmental expert            
is on scheduled leave.  He stated DOT/PF supports HB 404.                      
                                                                               
REPRESENTATIVE COWDERY indicated he spoke with Commissioner                    
Brownfield, DOT, regarding this concept.  He asked approximately               
how many vehicles come through Tok, the Alcan [Alaskan-Canadian]               
Highway that do not pay because the scales are only opened a short             
time.                                                                          
                                                                               
MR. POSHARD replied DOT/PF does not know how many come through                 
after hours.  He said, "We have estimated that we will collect                 
revenues from approximately 1,750 vehicles at the Tok boarder, and             
that's of the temporary registration fees.  That includes the ones             
that don't currently pay, but also our estimation of how many come             
across that do not currently pay."                                             
                                                                               
Number 1130                                                                    
                                                                               
REPRESENTATIVE COWDERY said trucking industry people say it is a               
fact that some of these trucks come over, they are over legal                  
limits and weights, and things like that.  And some of them are                
carrying hazardous materials that Alaska laws forbid, they may                 
transfer to our own trucks.  He said he understands that happens               
quite frequently.                                                              
                                                                               
MR. POSHARD replied, "Yes, since that kind of stuff is happening               
illegally, obviously we don't have any kind of handle on it or                 
wouldn't be able to make some sort of determination.  But                      
certainly, we hear reports of trucks that come across illegally                
that either don't meet the required Alaska safety standards or they            
are hauling some form of cargo that is not legal or whatever.  But             
we would have no way of knowing that short of having the station               
open 24 hours and requiring everybody to stop.  And that's part of             
what our fiscal note will allow us to do is to provide three new               
positions in Tok and to keep that station open 24 hours a day."                
                                                                               
Number 1217                                                                    
                                                                               
REPRESENTATIVE JERRY SANDERS asked, "When they come in temporary               
it's for 60 days.  Are they allowed to come in and work for Alaskan            
companies up and down the road for 60 days, or do they just - a                
trip permit to come in and unload and go back?  Or perhaps load and            
go back."                                                                      
                                                                               
MR. POSHARD said the way he understands it, they are allowed to                
operate within the Alaska borders and drive on our roads for 60                
days.  If they choose to conduct business within Alaska during that            
time period, he believes they are allowed to do that.                          
                                                                               
REPRESENTATIVE SANDERS asked, "The significance of the 60 days, can            
you tell me where that comes from, is that necessary, is that                  
federal, is that just something somebody grabbed out of the sky,               
can it be reduced, or should it."                                              
                                                                               
MR. POSHARD replied there is an amendment that will reduce it to 30            
days.  He said, "Our initial thinking, going to 60 days was the                
current registration period was for 10 days and it was between $10             
and $50 and we thought with increasing the fee to $350 there ought             
to also be at least some increases in the period of days.  I think             
we just picked 60 in working with other groups.  But I think that              
there is some merit to considering other time periods."                        
                                                                               
REPRESENTATIVE SANDERS agreed, 60 days is too long.                            
                                                                               
Number 1330                                                                    
                                                                               
FRANK DILLON, Executive Vice President, Alaska Trucking                        
Association, Incorporated was next to testify.  The Alaska Trucking            
Association is a trade association which is 38 years old with                  
statewide representation amongst truck users of all kinds.  He                 
encouraged the members to support HB 404.  He said, "HB 404 is the             
culmination of some cooperative effort on the part of various                  
different agencies in state government including DOT/PF, DMV,                  
Department of Public Safety.  It's had input from the trucking                 
industry from shippers who use the trucking industry and has the               
support of labor."                                                             
                                                                               
MR. DILLON indicated there are several key provisions in HB 404                
that are of great interest to the trucking industry and would be of            
great benefit to the economy of Alaska.  He said, "Those include               
the statute which cleans up a problem we've had with commercial                
vehicle inspections, which we'd hope to rectify last year in HB 83,            
which was favorably passed by the House and Senate.  Unfortunately             
in the process of getting to the end of the legislative tube, it               
was amended and became something that would not have worked.  That             
was vetoed by the governor and we are glad that it was not                     
overridden because that piece of legislation would not have solved             
our problem with truck inspections.  However, HB 404 does and what             
it does is it sets the federal standard which is used throughout               
the country and in Alaska for the last seven years as basically the            
law of the land for truck inspections, and mandates an annual                  
inspection and a daily inspection that is are very comprehensive in            
its nature and qualifies the drivers as well.  But it gets us in               
line with the federal government and it gets us out of a bind with             
a law that was passed in 1986 which was never funded and which we              
had never implemented and would be very expensive and really                   
without any safety merit if we were to implement it today.  That's             
the first section that we think is extremely important one in this             
bill and has been well crafted."                                               
                                                                               
MR. DILLON said, "Secondly, the fee for out-of-state trucks is                 
something that we felt was unfair for some time and we're very                 
happy that the DOT/PF has agreed with us that that fee should be               
raised so that trucks that enter the state of Alaska, that are here            
to deliver freight, aren't here with a carte blanche to take work              
during the summertime from Alaska drivers and Alaska trucking                  
companies.  And we applaud the amendment that reduces this from 60             
to 30 days, we believe that 30 days allows a person reasonable time            
to come up here, deliver his freight, wait for a back haul                     
shipment, say fish or something else to take outside without                   
getting into the business of becoming a competitive trucking                   
company in Alaska, hauling freight during our busy time of the                 
season and the best weather of the year.  Now if those kind of                 
trucks came up in the dead of winter and took some of the freight              
on the Dalton Highway, it would be different, but they don't ever              
seem to show up at that time of the year."                                     
                                                                               
MR. DILLON said, "The third portion of the bill is the one that                
eliminates the annual registration of commercial trailers with DMV.            
This has been the trend throughout the country, it does allow us,              
as was mentioned earlier to become eligible for the International              
Registration Plan (IRP) which is a greatly simplified way of                   
prorating the use of equipment in different jurisdictions.                     
Currently, there are a number of provinces, and most of the states             
that are part of that plan, it's predicted by the year 2000 that               
all the states would be participating in it.  Hopefully, Alaska                
would complete the full 50-state implementation, in order to do                
that we need to get rid of the trailer registration.  We had                   
applied for an exception to see if they would allow us to keep our             
current trailer registration method and be part of IRP and this                
last September the IRP Executive Committee rejected that exception             
and said, 'No, if you want to get into the plan you need to do away            
with your annual trailer registrations.'  That has no effect on                
safety because the registrations basically are not a safety                    
inspection.  It's something that's done without the trailer being              
inspected by anyone from the state."                                           
                                                                               
MR. DILLON said, "It is a revenue-generating-mechanism, we believe             
that that's reasonable and that's why we've accepted the fact that             
we could shift those from the trailers to power units by weight                
classification and not see too great of an increase.  We still have            
the lowest, and I perhaps shouldn't say this but I'll mention it               
anyway, we still have the lowest registration fees for commercial              
vehicles, and I don't want to give anyone any ideas, in the                    
country.  Most of the increases are between - I believe $30 and at             
the maximum $100 per power unit.  It's not the type of increase                
that would actually jeopardize anyone's business in any way shape              
or form, to be what I would consider a hardship."                              
                                                                               
Number 1563                                                                    
                                                                               
MR. DILLON said, "It does, however, provide a real efficiency at               
DMV by eliminating more than 20,000 transactions that have to take             
place right now with DMV personnel.  And again, those transactions             
cost, according to the DMV director's office, somewhere between $5             
and $8 per transaction.  That's where we derive the savings idea of            
$100 thousand plus.  It also, of course, frees up those windows                
where we do have people with a large fleet, fleets with different              
times of the year send a person time after time, after time,                   
because of the methodology of registration of taking only 25 units             
at a time, a person could spend days at a time at DMV registering              
trailer equipment.  If the state collects the same amount of money             
for it, and we don't have to go through those transactions, we can             
then use this equipment in interstate and international                        
transportation easier.  We fit this all together into this package             
and we think it makes a very very good bill that we strongly urge              
your support of."                                                              
                                                                               
REPRESENTATIVE COWDERY reiterated the fact that trailers leave                 
Alaska and are gone for some time.  He asked if they are off-                  
loaded.                                                                        
                                                                               
MR. DILLON replied, "We have trailers now in companies that operate            
internationally from Alaska.  We have freight shipments that can               
end up and do in every state and every province in North America,              
and believe it or not, even in Mexico.  The trucking industry is               
quickly becoming much more of an international player.  The                    
agreements that we're hoping will eventually be implemented in                 
NAFTA [National American Free Trade Agreement] will provide for                
freer flow of this equipment and the ability of our carriers from              
Alaska to get into markets that traditionally, because of                      
regulatory thresholds have been unavailable in the past."                      
                                                                               
Number 1659                                                                    
                                                                               
MR. DILLON continued, "Alaska was one of the first states in the               
country to open up the trucking industry through the process of                
deregulation to completely free-market-based enterprise.  That's               
what's happening pretty much nationwide now, the federal government            
has mandated that, amongst the states we're seeing the same thing              
in Canada, we're seeing the same thing in Mexico.  And all what                
that does is it lowers the cost of moving everything, which I've               
said I think before this committee before, 'If you've got it, a                
truck brought it.'  And we truly believe that and when you make our            
industry more efficient, and more cost-effective, it's good for                
everything in the economy."                                                    
                                                                               
REPRESENTATIVE COWDERY asked for a guesstimate of the number of                
trailers, some of the largest trucking concerns, a business might              
have.                                                                          
                                                                               
Number 1698                                                                    
                                                                               
MR. DILLON replied the larger trucking companies, the traditional              
trucking companies, it would not be unusual for them to have 500 to            
900 trailers.                                                                  
                                                                               
REPRESENTATIVE ELTON indicated the challenge is, is that the state             
increases the fees and assumes that the fees will be used for the              
additional weigh station safety employees.  The challenge for the              
industry is to make sure that that does happen.  For example, the              
DMV will increase the fees and take it for other spending.                     
                                                                               
MR. DILLON said, "We were hopeful that the intent language, which              
is incorporated in here, will help with the governor's budget and              
encourage that that money be redirected.  The trucking industry is             
not receiving what we consider our fair share of money to keep the             
weigh stations open, or to do enough safety inspections in the                 
state."                                                                        
                                                                               
Number 1731                                                                    
                                                                               
MR. DILLON pointed out the weigh stations are very important                   
internally because it levels the playing field between competitors.            
It makes sure, from a public interest standpoint, that trucks are              
not overloaded and destroying the roads and causing more damage to             
the roads than is warranted.  Mr. Dillon said, "We also believe on             
the safety-side of things, that the prevention of accidents is                 
paramount, but also again leveling the playing field with those                
companies that are committed to running safe trucks and qualified              
drivers are not at a competitive disadvantage because they make                
that investment.  So, it's not always that we are wearing some sort            
of white hat when we say we want the trucks weighed and we want the            
safety inspections.  There's also a true business interest in that.            
But to spill over into the public arena where your major concern               
is, is in protecting that highway from damage that's unnecessary,              
and in making sure that the trucks are running on the highway are              
operated by qualified drivers in safe conditions.  We will be                  
following up with this."                                                       
                                                                               
REPRESENTATIVE HUDSON referred to trucks escaping the registration             
fee, he assumed that is, in a large part, because the state is not             
manning the stations at times trucks are coming through.  He asked,            
"Does the temporary registration fee on page 7, the $350, is that              
an annual certificate or is it every time they come through, or                
what."                                                                         
                                                                               
MR. DILLON replied an amendment will be offered to consider it to              
be a 30-day fee, which is what they recommended.  That allows a                
person who enters at Tok to register in the state temporarily for              
30 days.  He can go pretty much where he wants and do what he                  
wants.  Should he stay longer than 30 days, he would be required to            
renew that temporary registration.                                             
                                                                               
MR. DILLON mentioned a number of trucks come to the Anchorage area             
to work and haul dirt during the summertime from the Lower 48, or              
from logging areas in Montana.  They can come into the state and               
still register full-time at whatever the registration cost is and              
spend the full summertime and not pay $350 every 30 days if that is            
what they choose to do.  That is typical of registration in every              
state, you have the option of buying a trip permit.                            
                                                                               
MR. DILLON continued, "And, I might mention that these temporary               
permits -- our research over the last four years - and we've asked             
hundreds of different carriers who are moving freight into the                 
state. -- It's not uncommon for us to get four or five calls a week            
where a carrier from Minnesota or a carrier from Florida will call             
up and say, 'Well, we're coming up with a load of such and such to             
go to a place called Prudhoe Bay, when we get to the state of                  
Alaska what's going to be necessary to operate there.  Will we need            
to have a fuel bond, will we need to post an insurance bond, will              
we need to file a mileage rate.'  And now I tell them, 'If the                 
scale is open, please buy a $10 permit,' and they think we're                  
joking.  So we've asked them, 'What would your feeling be if it was            
a $300 or $400 permit to come up to the state of Alaska.  They'd               
go, 'Oh, you know we figured that into the rate of going and doing             
business in Alaska.'  So we don't anticipate that there will be                
many people that are going to be adversely impacted by this, and               
it's certainly not our line of the reciprocity that we find, for               
example when one of our trucks wants to haul into the Yukon - a                
trip into the Yukon to deliver freight may cost the individual                 
freight hauler as much as $600 to deliver that load.  And then it's            
not good for like 30 days at a time, so there's still an imbalance.            
What this will do though, is make it a more balanced system where              
these out-of-state truckers are at least contributing something                
more to the state of Alaska where they're actually achieving some              
benefit for running on our roads."                                             
                                                                               
Number 1916                                                                    
                                                                               
REPRESENTATIVE COWDERY asked if one of the three amendments has                
been withdrawn.                                                                
                                                                               
CHAIRMAN WILLIAMS replied yes, by Representative Davis.                        
                                                                               
REPRESENTATIVE COWDERY asked Mr. Dillon if the Alaska Trucking                 
Association supports the other two amendments.                                 
                                                                               
MR. DILLON replied, "We definitely support the 30-day amendment,               
and we support the $10 fee for a one-time (indisc.) registration to            
put a sticker on the current equipment that shows that they were               
paid up and legal."                                                            
                                                                               
Number 1941                                                                    
                                                                               
REPRESENTATIVE SANDERS asked, "On the temporary permit, ... rather             
than 30 days, would you entertain - or could you guys live up to it            
- it might be more trouble than its worth, a trip permit, that you             
said you were coming four days over, four days back, that would                
leave you about a three-day grace period at the end and with                   
provisions for an extension."                                                  
                                                                               
MR. DILLON said, "I'm afraid something like that, although a very              
good idea, would be unworkable in terms of the enforcement of it.              
It's difficult enough if we can catch them at the border one time.             
The guy going out short of impounding his truck and threatening, I             
guess his family back home.  We would find it very difficult to                
collect that money.  It's again, given the size of this state, the             
type of commodities that move in and out of the state, we believe              
that increasing what is the current system of buying a multi day               
permit that allows you simply to do what you need to do is                     
reasonable.  We believe, and there are a number of folks who would             
like to see, I'm sure that a shorter time frame - but we will, in              
fact, have more of them registered full-time if we get the time                
frame too short and the price too high.  We believe in thinking                
this thing through and then talking to operators about how they                
would feel about it.  But the $350 for a trip permit and 30 days               
seems to be the most reasonable balance."                                      
                                                                               
MARK TABBUTT, General Manager, Totem Ocean Trailer Express [TOTE],             
was next to testify  He said, "We're an Alaskan transportation                 
company, our only market is Alaska.  We operate three roll-on,                 
roll-off vessels between the Port of Tacoma and the Port of                    
Anchorage and we carry roughly 50 percent of all the freight that              
comes into the Port of Anchorage.  And the Port of Anchorage                   
carries about 75% to 80% of all the freight consumed through                   
Southcentral and most of the bush communities."                                
                                                                               
MR. TABBUTT indicated TOTE attracts the state's largest trucking               
companies as their biggest customers, their operation is an                    
integral part of their trucking operation.  TOTE owns or leases                
about 1500 highway trailers, depending on the season and the                   
demands, has an investment of about $40 million, in highway trailer            
equipment specifically to serve the state of Alaska.  He noted they            
operate the fleet throughout the Lower 48, for example, picking up             
northbound freight in California destined for Carr Gotstein grocery            
store in Fairbanks.  Southbound, they will pull Copper River salmon            
out of Cordova and ship that to Tacoma, and then maybe delivered to            
Chicago to a fish buyer there.                                                 
                                                                               
MR. TABBUTT concluded, "This bill will accomplish three steps that             
we promote.  First, it will bring our state's regulations more in              
line with other states which is critically important to companies              
like ours that move this equipment routinely across state lines.               
Two, it will work toward creating a level playing field, that we               
believe we need to have in this state within the trucking industry             
by requiring consistent licensing fees, safety regulation                      
compliance and equal enforcement of - discussed earlier - load                 
regulations.  Finally, it will make a revenue neutral change in                
licensing requirements which will ease both government and                     
industries administrative burden in tracking the licensing."                   
                                                                               
Number 2234                                                                    
                                                                               
REPRESENTATIVE HUDSON said, "I know this has nothing to do with the            
bill, but I'd really be interested in what the total value of in               
hauled goods and the approximate value of the out hauled goods from            
Alaska would be. ... Particularly about the time we get the                    
permanent fund dividend, or shortly thereafter.  If you have those             
kind of figures, somewhere along the line, I would sure appreciate             
that kind of a bit of information."                                            
                                                                               
MR. TABBUTT replied, "A study was conducted by the Seattle and                 
Tacoma Chamber of Commerce.  And the effort was to obtain the                  
dollar figure of goods that come out of Pudget Sound into Alaska,              
and the vice versa.  It's surprising but the trade imbalance is in             
favor of Alaska, if you take in the crude that's consumed in the               
Pudget Sound Region, and the fish.  The trade imbalance is that                
Alaska is sending more south than the Pudget Sound is sending                  
north.  But I'd be happy to get you a copy of that study."                     
                                                                               
Number 2295                                                                    
                                                                               
PETER BLANAS, Teamster Line Driver, was next to testify.  He said              
if HB 404 is enacted, it will be beneficial to Alaska and to the               
trucking industry.  Mr. Blanas read the following testimony:                   
                                                                               
"First, as you know, HB 404 will charge a fee for out-of-state                 
trucks entering Alaska.  The number of these trucks have increased             
dramatically over the last few years utilizing our infrastructure              
and taking work from Alaskans and Alaska business.  These outside              
operators currently pay almost no fees whatsoever which is                     
inconsistent with most other states and provinces.                             
                                                                               
"Second, the fees charged to outside operators, if I read the bill             
right, could then be appropriated to state DOT/PF programs which               
are in line with truck safety and enforcement, such as full-time               
operation of state scales, which is in the public's interest for               
several reasons.  First a driver's logbook must coincide with the              
scale times, which are logged into the state scale computer.  If               
the scale is closed, the driver is free to run a trip, or multiple             
trips, anyway he likes and literally fill in the blanks later.                 
This lack of enforcement, I believe is one of the greatest                     
contributing factors of fatigue related accidents.  Also,                      
oftentimes a driver will head out on a trip with no idea of what               
conditions lay ahead.  Very often the only indication he'll have of            
trouble will come from the scale operator.  The scale operator                 
normally warns drivers of say adverse winter conditions but also               
has the ability to summon help in an emergency and to summon                   
maintenance crews if a particular hill is iced over or if there                
happens to be a rock slide on the road on a rainy night.                       
                                                                               
"Third, money collected from the outside operators may also be                 
available for funding the state DOT/PF inspection program which                
currently leaves much to be desired.  It may interest this                     
committee to know that I have received one full scale truck                    
inspection in the last four years, and that was only because I                 
found the inspector and requested it."                                         
                                                                               
MR. BLANAS said, "In conclusion, I would like to convey that the               
single most important part of HB 404 to me is that the outside                 
operators, who make liberal use of our infrastructure, and reap the            
benefits of hauling off our natural resources be made to shoulder              
some of the burden of the benefits that they enjoy.  HB 404 is a               
good start toward that end."                                                   
                                                                               
Number 2399                                                                    
                                                                               
REPRESENTATIVE COWDERY asked are the Canadian load limits the same             
as Alaska's.                                                                   
                                                                               
MR. BLANAS replied he did not know.                                            
                                                                               
REPRESENTATIVE COWDERY mentioned he heard trucks come up from the              
Lower 48 through Canada and off-load, for example in Fairbanks into            
a local truck which cannot legally carry that weight.  He asked Mr.            
Blanas if he was aware of that.                                                
                                                                               
MR. BLANAS replied he was not familiar with that.                              
                                                                               
Number 2445                                                                    
                                                                               
BARBARA HUFF-TUCKNESS, Director of Governmental and Legislative                
Affairs, Teamster's Local 959, testified in support of HB 404.  She            
said, "Without reiterating all of the previous speaker's testimony,            
I think we have gone on record, hopefully everybody has received a             
copy of Gerry [Gerald] Hood, our secretary-treasure's letter  ...              
[February 19, 1998] supporting the basic provisions of this bill.              
It does three things, at least what we have supported through this             
process, the adoption of the..."                                               
                                                                               
TAPE 98-8, SIDE B                                                              
Number 0001                                                                    
                                                                               
MS. HUFF-TUCKNESS continued, "The main reasons from the locals                 
perspective here in looking at this particular industry - I think              
an industry that, from the teamsters' perspective has been long                
overlooked.  For many many years a lot..."  (Tape jammed, therefore            
approximately three minutes of Ms. Huff-Tuckness' testimony is                 
missing).                                                                      
                                                                               
TAPE 98-9, SIDE A                                                              
Number 0030                                                                    
                                                                               
CHAIRMAN WILLIAMS called the meeting back to order.                            
                                                                               
MS. HUFF-TUCKNESS stated for the record Teamster's Local 959 did go            
on record supporting HB 404.  She said, "In summary, the issues                
here I think are very very near and dear to all of us that live,               
work and operate throughout the state of Alaska whether you                    
actually work in the industry or drive the highways out there.  I              
would like to end though, with a very very near and dear concern               
that we have, and it is with the 24-hour, 7-day a week, operations             
with the weigh stations.  This does not come anywhere close to                 
fixing it.  It is an issue that we will continue working with the              
DOT/PF as well as the Department of Administration through this                
process.  I would like to commend both of those departments for                
their efforts and time that they have put in working with ATA                  
[Alaska Truckers Association], or the industry representatives,                
along with the teamsters in coming - at least to this particular               
point.  As mentioned earlier, the weigh stations are a problem out             
there around the state and I do believe one of a very great public             
concern and taking a look at how those are actually operating on a             
day to day basis."                                                             
                                                                               
CHAIRMAN WILLIAMS asked if anyone was on teleconference that would             
like to testify.                                                               
                                                                               
Number 0170                                                                    
                                                                               
LINDA LEARY, Vice President of Sales, Carlile K&W Transport,                   
testified via teleconference.  She said, "We would like to go on               
record as being in support of HB 404.  For those of you that aren't            
familiar with Carlile and the services that we offer, basically                
intrastate and interstate transportation, throughout the state of              
Alaska and from the Lower 48 into Alaska, we constitute about 350              
employees in the state of Alaska, we run 100 tractors and about 850            
pieces of trailing equipment, so this bill is very important for               
us."                                                                           
                                                                               
MS. LEARY continued, "Some of the issues that we run into on a                 
daily basis with our customers are safety and that's where we feel             
that the truck inspections will play a big roll in that.  And also             
a level playing field with the inbound on transportation, we know              
that there are a number of carriers that transport into the state              
of Alaska, closer to probably 4,000 loads a year that actually                 
enter the state that we would like to have it be a little bit                  
fairer for everybody.  And the registration of the power units is              
a much better plan for us.  We also have equipment that we operate             
down around the Seattle and Portland area, and as well as Alaska.              
We'd like to go on record as being in support of it."                          
                                                                               
Number 0299                                                                    
                                                                               
REPRESENTATIVE COWDERY asked Ms. Leary if her company has special              
equipment to handle hazardous material.                                        
                                                                               
MS. LEARY replied "We transport hazardous material as well as                  
hazardous waste, and most of the hazardous waste goes out of the               
state and the inbound hazardous material, most of what we have goes            
over the water with TOTE and there's a very little that probably               
comes over the road. ... Probably not that much chemicals because              
a lot of the chemicals need to be heated and protected, so a lot of            
the traffic you see is probably flatbed traffic and unheated                   
trailers."                                                                     
                                                                               
CHAIR WILLIAMS indicated there were two amendments before the                  
committee.                                                                     
                                                                               
Number 0418                                                                    
                                                                               
REPRESENTATIVE MASEK made a motion to adopt Amendment 1, 0-                    
LS1528\A.1, [2/20/98]:                                                         
                                                                               
     Page 4, lines 10-11:  Delete all material.                                
                                                                               
     Renumber the following bill sections accordingly.                         
                                                                               
     Page 9, following line 10:  Insert a new bill section to read:            
                                                                               
     "*Sec. 20. AS 28.10.421 is amended by adding a new subsection             
     to read:                                                                  
                                                                               
     (i) A one-time registration fee of $10 is imposed upon initial            
     registration for a trailer or semi-trailer for commercial                 
     purposes."                                                                
                                                                               
     Renumber the following bill sections accordingly.                         
                                                                               
CHAIR WILLIAMS asked whether there was any objection, there being              
none, Amendment 1 was adopted.                                                 
                                                                               
Number 0473                                                                    
                                                                               
REPRESENTATIVE MASEK noted Amendment 2 was withdrawn.  She made a              
motion to adopt Amendment 3, [0-LS1528\A.3, 2/23/98]:                          
                                                                               
     Page 7, line 4:  Delete "60"                                              
                                                                               
     Insert "30"                                                               
                                                                               
CHAIR WILLIAMS asked whether there was any objection, there being              
none, Amendment 3 was adopted.                                                 
                                                                               
Number 0519                                                                    
                                                                               
REPRESENTATIVE HUDSON made a motion to move HB 404 as amended with             
individual recommendations and attached fiscal notes.  There being             
no objection, CSHB 404 moved from the House Transportation Standing            
Committee.                                                                     
                                                                               
ADJOURNMENT                                                                    
                                                                               
Number 0567                                                                    
                                                                               
CHAIR WILLIAMS adjourned the House Transportation Standing                     
Committee at 2:08 p.m.                                                         

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