Legislature(1995 - 1996)

03/28/1995 01:45 PM Senate TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                     SENATE TRANSPORTATION                                     
                         March 28, 1995                                        
                           1:45 p.m.                                           
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
 Senator Steve Rieger, Chairman                                                
 Senator Lyda Green                                                            
 Senator Al Adams                                                              
 Senator Georgianna Lincoln                                                    
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
 Senator Robin Taylor, Vice Chair                                              
                                                                               
 COMMITTEE CALENDAR                                                            
                                                                               
 SENATE BILL NO. 64                                                            
 "An Act relating to the dissolution of the Alaska Railroad                    
 Corporation and providing for a successor corporation; and                    
 providing for an effective date."                                             
                                                                               
 SENATE BILL NO. 28                                                            
 "An Act repealing an additional fee for motor vehicle registration            
 not conducted by mail and limiting motor vehicle emissions                    
 inspection to once every two years."                                          
                                                                               
  PREVIOUS SENATE ACTION                                                       
                                                                               
 SB 64 - See Senate Transportation minutes dated 2/9/95 and 3/23/95.           
                                                                               
 SB 28 - No previous action to record.                                         
                                                                               
  WITNESS REGISTER                                                             
                                                                               
 James Armstrong, Staff                                                        
 Senator Donley                                                                
 State Capitol                                                                 
 Juneau, Alaska 99801-1182                                                     
 POSITION STATEMENT:  Offered information regarding SB 28.                     
                                                                               
 Senator Donley                                                                
 State Capitol                                                                 
 Juneau, Alaska 99801-1182                                                     
 POSITION STATEMENT:  Prime sponsor of SB 28.                                  
                                                                               
 Ron King, Acting Chief                                                        
 Air Quality Management Section                                                
 Department of Environmental Conservation                                      
 410 Willoughby Avenue, Suite 105                                              
 Juneau, Alaska 99801                                                          
 POSITION STATEMENT:  Offered additional information.                          
  ACTION NARRATIVE                                                             
                                                                               
 TAPE 95-7, SIDE A                                                             
                                                                               
                                                                               
         SB  64 CONVERT AK RR TO PRIVATE CORPORATION                         
                                                                               
 Number 002                                                                    
                                                                               
 CHAIRMAN RIEGER called the Senate Transportation meeting to order             
 at 1:45 p.m.  He introduced  SB 64  as the first order of business            
 before the committee.  He explained that the Utermohle, version M,            
 CS eliminated the reference to the $25 per share par value.  This             
 CS also rewords the concurrence of other parties which was part of            
 the language discussed in reference to assigning contracts to a               
 successor corporation.                                                        
                                                                               
 SENATOR GREEN moved that the Utermohle, version M, CS be adopted in           
 lieu of the original bill.  Hearing no objection, the CS was before           
 the committee for consideration.                                              
                                                                               
 CHAIRMAN RIEGER recognized Senator Adam's concerns regarding                  
 another CS, but preferred not to move that version out.  He said              
 that Senator Adams was welcome to move that version.  That version            
 could be used if the current CS has problems.                                 
                                                                               
 SENATOR ADAMS stated that his version was better than the current             
 CS.  He explained that his version would eliminate an asset that              
 should be privatized.  He agreed not to offer his CS, but he                  
 informed the Chair that he would oppose the movement of the bill              
 from committee until a majority of the Majority members are                   
 present.                                                                      
                                                                               
 SENATOR LINCOLN felt that the bill should be held.                            
                                                                               
 CHAIRMAN RIEGER agreed to hold SB 64 until a future meeting.                  
                                                                               
                                                                               
       SB  28 MOTOR VEHICLE REG FEE/EMISS'N INSPECTIONS                      
                                                                               
 Number 051                                                                    
                                                                               
 CHAIRMAN RIEGER introduced  SB 28  as the next order of business              
 before the committee.                                                         
                                                                               
 SENATOR ADAMS asked from whose sponsor substitute they would work.            
                                                                               
 JAMES ARMSTRONG, staff to Senator Donley, explained that the                  
 sponsor substitute was a work draft which was never offered.                  
 SENATOR ADAMS moved that CS 9-LSO256\F be adopted.  CHAIRMAN RIEGER           
 objected in order to clarify if Senator Adams wanted to adopt the             
 CS for working purposes or move it out of committee.  SENATOR ADAMS           
 clarified that he wanted to adopt the CS for working purposes.                
 CHAIRMAN RIEGER removed his objection and the CS was before the               
 committee.                                                                    
                                                                               
 SENATOR GREEN asked if the language "an area designated by the                
 Department of Environmental Conservation" in Section 1 was in the             
 original bill.                                                                
                                                                               
 SENATOR DONLEY, prime sponsor of SB 28, explained that the goal of            
 SB 28 is to move from annual testing to biannual testing.  By                 
 changing to a biannual registration and testing program, the system           
 has to be "tweeked" in order to remain in compliance with federal             
 requirements.  The proposed CS allows the department more latitude            
 in some areas while tightening other areas.  Many other states have           
 this biannual system.                                                         
                                                                               
 SENATOR ADAMS inquired as to the federal requirements for emission            
 control and the amount of money the state receives for providing              
 those services.  SENATOR DONLEY said that it is tied to the state's           
 federal highway funds.  The requirements specify the number of                
 noncompliance days before a community must initiate procedures to             
 clean their air.  There are alternatives to emission testing,                 
 although emission testing seems to be the most successful program             
 in gaining compliance.  Senator Donley stated that without this               
 program, the federal government would not give the state funds.               
                                                                               
 Number 137                                                                    
                                                                               
 RON KING, the Acting Chief for the Air Quality Management Section             
 in the Department of Environmental Conservation, explained that               
 Alaska annually receives between $175 million to $250 million in              
 appropriations for federal highway systems.  If the state fails to            
 achieve the standard or implement control measures, the federal               
 government can penalize the state through the sanction of highway             
 funds.  He pointed out that the federal government cannot penalize            
 projects that are for safety or part of an adopted air quality                
 control program.  Initially the penalty would occur inside a                  
 nonatainment area which refers to the Municipality of Anchorage and           
 the Fairbanks North Star Borough in this case.  If the area has               
 failed to take corrective action after two years, the federal                 
 government can expand the penalties or sanctions statewide.                   
                                                                               
 SENATOR ADAMS asked if the biannual testing would create a loss of            
 funds.  RON KING stated that if the program remains as stringent as           
 the current program, the inspection can be done biannually.                   
 However, there are provisions that must be present in order to                
 ensure that the program is as stringent.  Mr. King expressed some             
 potential concerns with the bill.  The department is working on a             
 fiscal note and an analysis of the bill.                                      
 SENATOR ADAMS asked why the fees were increased from $75 to $200.             
 SENATOR DONLEY explained that the fees increased due to the fact              
 that people would be registering their car every two years.                   
 Senator Donley noted that there is also an increase in the                    
 deterrent for the penalty for noncompliance, from $75 to $200.                
                                                                               
 RON KING pointed out that currently the department can only treat             
 a violation of these regulations as a Class A misdemeanor which is            
 punishable by up to one year in jail and up to $5,000.  This would            
 require going to Superior Court for a bailable offense.                       
                                                                               
 SENATOR ADAMS noted that the repeal regarding mailing in motor                
 vehicle registration results in a loss in revenue.  He was under              
 the impression that the Department of Revenue needed the extra                
 revenue in order to keep the staff in place which is a concern.  If           
 one of those parts is eliminated, the $1.1 million could be used as           
 program receipts to continue the service in motor vehicle                     
 registration.                                                                 
                                                                               
 SENATOR DONLEY indicated that the Department of Motor Vehicles                
 (DMV) generates more program receipts than they are allowed to use            
 in their operations.  He acknowledged that SB 28 has two elements:            
 repealing the $10 fee and the biannual testing.  Either provision             
 could stand alone.  He said that he supported both measures                   
 independently or together.                                                    
                                                                               
 Number 209                                                                    
                                                                               
 SENATOR LINCOLN supported the elimination of the $10 fee.  In areas           
 such as Cordova, in order to receive a title promptly, they must go           
 in to the DMV to register their vehicle.  If they have to mail in             
 their registration, the mail must travel from Cordova to Anchorage            
 and back which is not beneficial.  She expressed concern regarding            
 the language on page 1, lines 5-9 which refers to the motor vehicle           
 owner providing "the transferee with a current and valid emissions            
 inspection."  Rural residents often purchase a used vehicle in an             
 urban area and then ship that vehicle to an area where emissions              
 testing is not required.  She suggested that "new" be inserted                
 before "owner" on page 1, line 5 in order to address the situation            
 previously described.                                                         
                                                                               
 RON KING clarified that the language was intended to refer to the             
 current owner.  If the current owner resided in the Municipality of           
 Anchorage, the owner would be required to have the vehicle                    
 inspected whereas a owner located in Cordova would not be required            
 to have the vehicle inspected.  The current owner if in an area               
 that required emissions inspection would have to provide the person           
 buying the car with a certificate of inspection.                              
                                                                               
 SENATOR LINCOLN said that was unnecessary because if the buyer is             
 going into an area that does not require testing then there is no             
 need for the present owner to do that.                                        
 RON KING pointed out that there is a problem with vehicles being              
 registered outside an area in which testing is required and then              
 coming back into the testing area.  The persons buying those                  
 vehicles have purchased vehicles with thousands of dollars of                 
 tampering.  In order to eliminate that, the inspection is required            
 if the vehicle resides in an area which requires that emissions               
 inspection.  Therefore, the buyer would know that they are                    
 purchasing it clean and they are not faced with repair bills.                 
                                                                               
 CHAIRMAN RIEGER concurred with Senator Lincoln's concerns regarding           
 someone, outside of a testing area, purchasing a vehicle with the             
 intention of staying in that area.  Splitting the bill and                    
 eliminating the reduction of the $10 fee may be appropriate; the              
 latter portion has a negative $1.1 million fiscal note.                       
                                                                               
 There being no further business before the committee, the meeting             
 adjourned at 2:00 p.m.                                                        
                                                                               

Document Name Date/Time Subjects