Legislature(2005 - 2006)CAPITOL 17
04/14/2005 01:30 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB199 | |
| HB209 | |
| HB239 | |
| HB266 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | HB 266 | ||
| = | HB 199 | ||
| = | HB 209 | ||
| = | HB 239 | ||
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
April 14, 2005
1:35 p.m.
MEMBERS PRESENT
Representative Jim Elkins, Co-Chair
Representative Vic Kohring
Representative Mark Neuman
Representative Bill Thomas
Representative Mary Kapsner
Representative Woodie Salmon
MEMBERS ABSENT
Representative Carl Gatto, Co-Chair
COMMITTEE CALENDAR
HOUSE BILL NO. 199
"An Act excluding certain trucks from the definition of
'passenger vehicle' for purposes of the passenger vehicle rental
tax; and providing for an effective date."
- MOVED HB 199 OUT OF COMMITTEE
HOUSE BILL NO. 209
"An Act establishing the Aviation Advisory Board; and providing
for an effective date."
- MOVED HB 209 OUT OF COMMITTEE
HOUSE BILL NO. 239
"An Act relating to the powers and duties of the Department of
Transportation and Public Facilities; repealing the requirement
for a long-range program for highway construction and
maintenance; and repealing a requirement that public facilities
comply with energy standards adopted by the Department of
Transportation and Public Facilities."
- MOVED HB 239 OUT OF COMMITTEE
HOUSE BILL NO. 266
"An Act relating to offenses and penalties for violation of
vehicle weight limitations; prohibiting the use of a violation
of a vehicle weight limitation for certain personal automobile
insurance actions; amending Rule 43.6, Alaska Rules of
Administration; and providing for an effective date."
- MOVED CSHB266 (TRA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 199
SHORT TITLE: EXEMPT UHAULS FROM VEHICLE RENTAL TAX
SPONSOR(s): REPRESENTATIVE(s) KOTT
03/04/05 (H) READ THE FIRST TIME - REFERRALS
03/04/05 (H) TRA, STA, FIN
03/07/05 (H) STA REFERRAL REMOVED
04/12/05 (H) TRA AT 1:30 PM CAPITOL 17
04/12/05 (H) Scheduled But Not Heard
04/14/05 (H) TRA AT 1:30 PM CAPITOL 17
BILL: HB 209
SHORT TITLE: AVIATION ADVISORY BOARD
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
03/07/05 (H) READ THE FIRST TIME - REFERRALS
03/07/05 (H) CRA, TRA, FIN
03/23/05 (H) CRA REFERRAL WAIVED
04/12/05 (H) TRA AT 1:30 PM CAPITOL 17
04/12/05 (H) Scheduled But Not Heard
04/14/05 (H) TRA AT 1:30 PM CAPITOL 17
BILL: HB 239
SHORT TITLE: POWERS/DUTIES DOTPF/TRANSPORTATION PLAN
SPONSOR(s): TRANSPORTATION BY REQUEST
03/30/05 (H) READ THE FIRST TIME - REFERRALS
03/30/05 (H) TRA, FIN
04/12/05 (H) TRA AT 1:30 PM CAPITOL 17
04/12/05 (H) Scheduled But Not Heard
04/14/05 (H) TRA AT 1:30 PM CAPITOL 17
BILL: HB 266
SHORT TITLE: VEHICLE WEIGHTS AND INSURANCE
SPONSOR(s): TRANSPORTATION
04/08/05 (H) READ THE FIRST TIME - REFERRALS
04/08/05 (H) TRA, JUD, FIN
04/12/05 (H) TRA AT 1:30 PM CAPITOL 17
04/12/05 (H) Failed To Move Out Of Committee
04/12/05 (H) MINUTE(TRA)
04/14/05 (H) TRA AT 1:30 PM CAPITOL 17
WITNESS REGISTER
MICHAEL O'HARE, Staff
to Representative Pete Kott
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 199 on behalf of Representative
Kott, sponsor.
JOHN NORRIS, President
U-Haul Company of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 199.
JOHANNA BALES, Excise Audit Manager
Tax Division
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Answered questions on HB 199.
NONA WILSON, Legislative Liaison
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 209.
KIP KNUDSON, Deputy Commissioner of Aviation
Department of Transportation & Public Facilities
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 209.
TOM GEORGE
Aircraft Owners and Pilots Association
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 209.
JEFF OTTESEN, Director
Division of Program Development
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Testified in favor of HB 239.
MICHAEL BELL
Alaska Trucking Association
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to some provisions
of HB 266.
PAUL FUHS
Horizon Lines
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 266.
ACTION NARRATIVE
CO-CHAIR JIM ELKINS called the House Transportation Standing
Committee meeting to order at 1:35:01 PM. Representatives
Thomas, Kapsner, Neuman, and Elkins were present at the call to
order. Representatives Kohring and Salmon arrived while the
meeting was in progress.
HB 199-EXEMPT UHAULS FROM VEHICLE RENTAL TAX
CO-CHAIR ELKINS announced that the first order of business would
be HOUSE BILL NO. 199 "An Act excluding certain trucks from the
definition of 'passenger vehicle' for purposes of the passenger
vehicle rental tax; and providing for an effective date."
MICHAEL O'HARE, Staff to Representative Pete Kott, Alaska State
Legislature, said in 2003 the legislature passed House Bill 271
to generate revenue from visitors who rent vehicles. One
unintended consequence was the taxation of rental trucks used to
haul rental goods and household goods, he added. The bill will
exclude these trucks from the rental tax.
1:37:52 PM
JOHN NORRIS, President, U-Haul Company of Alaska, Anchorage,
said the original bill was intended as a tourism tax for rental
passenger vehicles. He said he was surprised when he was
contacted by the Department of Revenue. He noted that the tax
has impacted his company's business, because 17 percent less
people are using his service. For the month of March, he said,
he saw a 29 percent drop in customers. He noted that consumers
have other means of moving that are not taxed. A bill was
passed in 2004 to exempt taxis, and HB 199 will provide the same
relief for trucks, he stated.
1:41:25 PM
MR. NORRIS said 95 percent of U-haul's customers are Alaskans.
The Alaska Trucking Association and the Truck Rental and Leasing
Association support the legislation, he added. Last year was
the first year that his business saw a decrease in the use of
rental trucks. He said his customers have told him that the tax
is a significant hardship.
REPRESENTATIVE NEUMAN noted that many U-hauls work out of small
businesses in Alaska. He said he rents U-hauls to deliver some
of his furniture.
1:44:20 PM
JOHANNA BALES, Excise Audit Manager, Tax Division, Department of
Revenue, pointed out that HB 199 impacts five taxpayers within
the state, and the estimate in lost revenue is $275,000 per
year.
CO-CHAIR ELKINS asked what the five people are losing in income
because of the tax.
1:46:01 PM
MS. BALES said the department has no way to estimate that.
1:46:35 PM
REPRESENTATIVE KOHRING moved to report HB 199 out of committee
with individual recommendations and the accompanying fiscal
notes.
There being no objection, HB 199 moved from the House
Transportation Standing Committee.
1:47:15 PM
HB 209-AVIATION ADVISORY BOARD
CO-CHAIR ELKINS announced that the next order of business would
be HOUSE BILL NO. 209 "An Act establishing the Aviation
Advisory Board; and providing for an effective date."
NONA WILSON, Legislative Liaison, Department of Transportation &
Public Facilities, said HB 209 is critical to Alaska's aviation
infrastructure and aviation industry. The board was originally
created in 2003 by Governor Murkowski with an administrative
order, and it was renewed in 2004. This bill would continue the
existence of the board without the need for administrative
renewals.
1:49:19 PM
MS. WILSON said Anchorage and Fairbanks are international hubs,
and there are 258 rural airports in Alaska. The state has the
largest seaplane base in the world, six times the number of
pilots per capita, and 16 times the number of aircraft per
capita than the rest of the country. The Anchorage airport is
the largest cargo airport in North America. The Aviation
Advisory Board advises the commissioner and facilitates dialogue
between the state and the aviation industry on matters of
policy, management, operations, and safety. The board
represents a broad cross-section of Alaska's aviation industry
with a valuable combination of expertise, she concluded.
1:50:56 PM
REPRESENTATIVE SALMON asked about the purpose of the board.
MS. WILSON repeated her description of the board's purpose.
1:51:51 PM
REPRESENTATIVE SALMON asked if it makes aviation regulations.
MS. WILSON said the board would advise the commissioner on
regulations. She said the board is the administration's attempt
at fair and balanced representation of everybody who
participates in statewide aviation.
KIP KNUDSON, Deputy Commissioner of Aviation, Department of
Transportation & Public Facilities, said the advisory board is
critical, and the department has already gotten a lot of sage
advice from it. It should be a permanent structure, he said.
REPRESENTATIVE KAPSNER asked if it already exists.
MS. WILSON said it does, and HB 209 makes it permanent.
REPRESENTATIVE KAPSNER asked who represents air carriers serving
rural areas.
MR. KNUDSON said it was someone from Taquan Air in Ketchikan,
Alaska.
REPRESENTATIVE NEUMAN said most boards come up for review, and
asked why there wasn't a sunset date for this board.
MS. WILSON said the department would like to see the board
continued, even as members and administrations change.
1:55:51 PM
MR. KNUDSON added that the board was recommended by aviation
interests who didn't have adequate avenues to advise the state.
It is coming from the consumers, companies, and pilots, he said.
REPRESENTATIVE NEUMAN said he thought there were always sunset
clauses because things change, and the public likes to take
another look at government decisions.
REPRESENTATIVE KAPSNER asked about term lengths.
MS. WILSON said she thought they were staggered three-year
terms, with eleven members.
REPRESENTATIVE THOMAS said he likes the idea of it being
permanent, as many boards are.
1:58:52 PM
REPRESENTATIVE SALMON asked about the member from an
unorganized borough.
MR. KNUDSON said that seat is occupied by someone from Bettles
Air Service. The intent is to make sure unorganized areas were
covered on the board, he explained.
REPRESENTATIVE NEUMAN said he does not have a problem with
permanence.
2:00:15 PM
TOM GEORGE, Aircraft Owners and Pilots Association (AOPA),
Fairbanks, said AOPA has 4,600 members in Alaska, and it
supports HB 209. He said aviation plays a crucial role in
Alaska, and there needs to be a way for the industry to dialogue
with the department as it sets policy and makes management
decisions. The board members represent broad interests and
geographic regions, he stated.
2:01:36 PM
REPRESENTATIVE KAPSNER moved to report HB 209 out of committee
with individual recommendations and the accompanying fiscal
notes.
There being no objection, HB 209 was passed out of the House
Transportation Standing Committee.
2:02:06 PM
HB 239-POWERS/DUTIES DOTPF/TRANSPORTATION PLAN
CO-CHAIR ELKINS announced that the next order of business would
be HOUSE BILL NO. 239 "An Act relating to the powers and duties
of the Department of Transportation and Public Facilities;
repealing the requirement for a long-range program for highway
construction and maintenance; and repealing a requirement that
public facilities comply with energy standards adopted by the
Department of Transportation and Public Facilities."
JEFF OTTESEN, Director, Division of Program Development,
Department of Transportation & Public Facilities (DOT), said
this almost passed the legislature last year. He said it is a
simple, housecleaning bill with one important provision. It was
driven home by a lawsuit against the state for failing to have a
full cost benefit analysis before a rural project went forward.
He said any project can be litigated unless HB 239 passes.
MR. OTTESEN said that the bill takes care of things that have
changed over time. He said DOT receives money from sources that
are expected to be granted to local government or nonprofits,
and Section 1 gives the department legal authority to issue the
grants. The heart of the bill is Section 3, he said. The
merging of DOT and public works was an administrative order that
became statute without a legislative vote, he explained. An
annual transportation plan for all modes of transportation was
required at that time, but DOT can't afford to do that now. He
said it also calls for a cost and benefit analysis for every
project without considering the size of the project. The court
ruling and lawsuit requires the cost benefit study, so every
local government who nominates a project for aviation, highways,
or transit will have to do the analysis. "That's not something
we want them to do; that's something we're doing because the
court has already ruled that the statute requires this." He
said there are two letters from local government supporting the
bill.
2:07:40 PM
REPRESENTATIVE NEUMAN moved to report HB 239 out of committee
with individual recommendations and accompanying fiscal notes.
There being no objection, HB 239 was passed out of the House
Transportation Standing Committee.
HB 266-VEHICLE WEIGHTS AND INSURANCE
CO-CHAIR ELKINS asked if there was any further business to come
before the committee. Upon the following motion, the committee
turned its attention to HOUSE BILL NO. 266, "An Act relating to
offenses and penalties for violation of vehicle weight
limitations; prohibiting the use of a violation of a vehicle
weight limitation for certain personal automobile insurance
actions; amending Rule 43.6, Alaska Rules of Administration; and
providing for an effective date."
REPRESENTATIVE THOMAS moved that the committee rescind its
action in failing to report CSHB 266(TRA) from committee on
April 12, 2005. There being no objection, CSHB 266(TRA) was
before the committee.
MICHAEL BELL, Alaska Trucking Association (ATA), said ATA
supports the insurance provision of HB 266. He said ATA doesn't
support the large increase in fines in Section 2, but the
proposal would be less objectionable "if confined to the highest
fees to the most significant violators." He stated that 8,000
pounds or less of overweight have insignificant impacts on
highways and may result from unintentional errors or lack of
scales. The fees place a larger burden on the small companies,
he contended. Mr. Bell said ATA does not support the shift of
responsibility from the motor carriers to the shippers for
violations caused by the bill of lading, because carriers have
the right to seek restitution from their customers if they so
choose.
2:11:57 PM
MR. BELL said for the provision dealing with the number of fines
related to the number of drivers, ATA suggests an additional
tier for up to 60 violations for the large companies that employ
more than 200 drivers.
2:13:09 PM
REPRESENTATIVE NEUMAN said he wished the committee had the
recommendations before the meeting. He said he agrees with Mr.
Bell on the fines. He said 8,000 pounds won't do significant
damage. "If we just had better enforcement, we wouldn't need
higher fines," he said. He suggested including ATA's letter
when the bill leaves committee.
2:14:34 PM
REPRESENTATIVE KOHRING said he is not clear on ATA's position.
MR. BELL said ATA supports some of the intentions of HB 266, but
it has some concerns with the increase in fees. He added that
ATA would like an amendment to make 8,000 pounds the baseline
and to increase fines on escalating over weights. He agrees
that extra weight is detrimental to roads, but it is very
difficult to be precise because of mud and snow.
REPRESENTATIVE KOHRING asked for ATA's proposed amendment.
CO-CHAIR ELKINS suggested that the House Finance Committee
address the fee structure.
REPRESENTATIVE KOHRING said he has faith in the House Finance
Committee, but he is uncomfortable with the high fees. Can a
little excavating business hauling a dozier one block down the
road be cited? he asked.
2:17:49 PM
NONA WILSON, Legislative Liaison, Department of Transportation &
Public Facilities, said there are temporary permits available.
AVES THOMPSON, Director, Division of Measurement Standards and
Commercial Vehicle Enforcement, Department of Transportation &
Public Facilities, said permits are available, and without one,
the truck would be in violation.
2:18:42 PM
REPRESENTATIVE NEUMAN asked the time and cost for a permit.
MR. THOMPSON said a permit can be obtained within the same day
unless there is an extraordinary load, and fees are $50 to $75.
2:19:27 PM
BARBARA HUFF TUCKNESS, Director of Governmental and Legislative
Affairs for Teamsters Local 959, said she represents a few truck
drivers, and the Teamsters strongly support HB 266. It is an
issue of road damage and safety, and whether it is a small
business or large, the rules are the rules. Running 5,000
pounds over weight is significant, and it is the motoring public
that is impacted, she said. The current fee structure has
become just another cost of business, she noted, and truck
drivers have a good idea if the truck is 2,000 pounds over.
2:21:59 PM
MS. TUCKNESS said the proposed fines will not impact anyone not
running overweight. Small or large, everyone should understand
the rules of the road. There is a timely permitting process,
she concluded.
2:24:47 PM
REPRESENTATIVE KOHRING said safety is important but he is
nervous about adopting legislation that increases fees to this
extent. He asked if there is a correlation with fee structures
and overweight offences.
MS. TUCKNESS said the teamsters believe the bill would reduce
violations. It is important to send the message, she said.
2:26:44 PM
REPRESENTATIVE KOHRING said he won't oppose HB 266, but he will
look at what comes out of the House Finance Committee before
supporting it on the floor.
REPRESENTATIVE NEUMAN said 2,000 pounds is hard to distinguish
on a vehicle that runs 200,000 pounds.
REPRESENTATIVE THOMAS said a driver of a truck that is 20,000
pounds over weight should lose his or her license.
MS. TUCKNESS said she supports increasing the state's
enforcement budget.
REPRESENTATIVE NEUMAN said HB 266 does nothing to the owners of
the company. Truck drivers may be making $15 hour, and may be
threatened with their job if they don't haul what they are told
to do.
CO-CHAIR ELKINS said that is not true.
2:29:28 PM
PAUL FUHS, Horizon Lines, Anchorage, said the ticket goes to the
driver who turns it over to the owner. The driver doesn't have
to pay the ticket, he said. Some companies may be overloading
as a practice, putting the drivers and public at risk. The
shipper or loader who lies can be held liable. Generally the
driver is not the person who gets a sanction, he said.
2:31:20 PM
MR. FUHS said trucks bend the pavement when overloaded, enough
to break the water seal. Running overweight at a slow speed
will prevent such damage. He gave an example of a family killed
by an overloaded gravel truck.
2:32:44 PM
REPRESENTATIVE THOMAS moved to report CSHB 266(TRA) out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 266(TRA) was
reported out of the House Transportation Standing Committee.
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 2:33
PM
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