Legislature(1995 - 1996)

04/26/1996 03:51 PM Senate TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                SENATE TRANSPORTATION COMMITTEE                                
                         April 26, 1996                                        
                           3:51 p.m.                                           
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
 Senator Steve Rieger, Chairman                                                
 Senator Robin Taylor, Vice Chair                                              
 Senator Lyda Green                                                            
 Senator Al Adams                                                              
 Senator Georgianna Lincoln                                                    
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
 All members present                                                           
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 CS FOR HOUSE BILL NO. 517(TRA)(title am)                                      
 "An Act relating to motor vehicle records and hearings of the                 
 Department of Public Safety; increasing the period under which a              
 person may drive a motor vehicle under a temporary permit; relating           
 to ownership of certain abandoned motor vehicles; relating to                 
 suspension or revocation of a motor vehicle registration or special           
 permit; relating to renewal of a driver's license by mail; relating           
 to procedures applicable to administrative revocation of a driver's           
 license; relating to commercial driver training schools; increasing           
 the property damage amounts for proof of financial responsibility             
 and proof of motor vehicle eligibility in order to lawfully operate           
 a motor vehicle in the state; amending the definition of                      
 `commercial motor vehicle'; relating to prohibited operation of a             
 commercial motor vehicle and to disqualification from driving a               
 commercial motor vehicle; relating to certain notifications in                
 accidents involving property damage; relating to motor vehicle                
 registration procedures; and providing for an effective date."                
                                                                               
 HOUSE JOINT RESOLUTION NO. 65                                                 
 Relating to proposed Federal Aviation Administration regulations              
 establishing crew member flight time limitations.                             
                                                                               
 CS FOR HOUSE BILL NO. 526(FIN) am                                             
 "An Act relating to the financing authority, programs, operations,            
 and projects of the Alaska Industrial Development and Export                  
 Authority; providing an exemption from the procurement code for               
 certain projects of the authority; and providing for an effective             
 date."                                                                        
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
 HB 517 - No previous action to record.                                        
                                                                               
 HJR 65 - No previous action to record.                                        
 HB 526 - See Senate Transportation minutes dated 4/16/96, 4/23/96.            
                                                                               
 WITNESS REGISTER                                                              
                                                                               
 Juanita Hensley, Chief of Driver Services                                     
 Division of Motor Vehicles                                                    
 Department of Public Safety                                                   
 P.O. Box 20020                                                                
 Juneau, AK 99811-0020                                                         
  POSITION STATEMENT:   Offered information on CSHB 517(TRA)                   
                                                                               
 Representative Gary Davis, Chair                                              
 House Transportation Committee                                                
 State Capitol                                                                 
 Juneau, AK 99801-1182                                                         
  POSITION STATEMENT:   Testified in support of HJR 65                         
                                                                               
 Keith Laufer, Assistant Attorney General                                      
 Governmental Affairs Section                                                  
 Department of Law                                                             
 1031 W. 4th Ave., Suite 200                                                   
 Anchorage, AK 99501-1994                                                      
  POSITION STATEMENT:   Offered information on CSHB 526(FIN) am                
                                                                               
 Randy Simmons                                                                 
 Alaska Industrial Development & Export Authority                              
 480 W. Tudor Road                                                             
 Anchorage, AK 99503-6690                                                      
  POSITION STATEMENT:   Offered information on CSHB 526(FIN) am                
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
 TAPE 96-19, SIDE A                                                            
 Number 001                                                                    
                                                                               
 CSHB 517(TRA)(title am) MOTOR VEHICLES: REGULATION & INSURANCE               
                                                                              
 CHAIRMAN RIEGER called the Senate Transportation Committee meeting            
 to order at 3:51 p.m., and brought CSHB 517(TRA)(title am) before             
 the committee as the first order of business.                                 
                                                                               
 Number 008                                                                    
                                                                               
 JUANITA HENSLEY, Division of Motor Vehicles (DMV), Department of              
 Public Safety, said most Alaskans need a driver's license in order            
 to carry on their daily routine and they have stood in line waiting           
 to take care of business that requires them to physically visit               
 DMV.  HB 517 will make it easier for the Department of Public                 
 Safety to serve the public by simplifying procedures for obtaining            
 a driver's license by removing exceptions to the renewal by mail-in           
 program.  Also, current law requires a person involved in an                  
 accident resulting in $500 or more in damage to property to report            
 the accident to local police or the Alaska State Troopers for                 
 investigation.  This amount was set in 1977 and present value of              
 the slightest scrape can cost that much to repair; this bill raises           
 that amount to $1,500.                                                        
                                                                               
 The legislation also provides for administrative hearings to be               
 held by telephone in most instances to avoid costly travel.  It               
 allows the Department of Public Safety to keep its records                    
 electronically and provides that certified copies of those                    
 electronically stored records are admissible in courts and                    
 administrative proceedings.  It also allows a temporary permit to             
 be issued by a car dealer to be valid for 60 days rather than 30              
 days to give the dealer and the Department of Public Safety more              
 time to take care of the necessary paper work.                                
                                                                               
 HB 517 also provides for compliance of the Code of Federal                    
 Regulations, Title 49, the Federal Motor Carrier Safety Act Program           
 grant requirements, and item 22 of the Commercial Vehicle Safety              
 Act 49 CFR parts 383, 390 and 391 dealing with disqualifying a                
 commercial driver for an out-of-service violation.  It makes house            
 keeping changes for compliance purposes.  Failure to adopt the                
 provisions of 49 CFR may result in a 5 percent sanction of federal            
 highway monies and the Federal Motor Carrier Safety Assistance                
 Program Grant (MCSAP) funding.                                                
                                                                               
 Concluding her overview, Ms. Hensley noted she had provided the               
 committee with a sectional analysis and she would respond to                  
 questions.                                                                    
                                                                               
 Number 048                                                                    
                                                                               
 SENATOR ADAMS asked Ms. Hensley to address the repeal of two                  
 statutes having to do with the staggering of vehicle registration.            
 MS. HENSLEY explained that in 1978 the department went from all the           
 vehicles having to be registered in January of the year to                    
 staggering registration for all vehicles, except for commercial               
 vehicles.  This will repeal the fact that the department would have           
 to register commercial vehicles every January and allow them to               
 stagger those registrations as they do now with other vehicles.               
                                                                               
 Number 071                                                                    
                                                                               
 SENATOR RIEGER referred to Section 5, relating to claim of                    
 ownership by private property owner, and asked what the law is now            
 in the absence of this section as far as when an abandoned vehicle            
 reverts to the owner of the real estate.  MS. HENSLEY responded               
 that before an individual could obtain a title to get a vehicle               
 removed from the property, he would have to go through a bonding              
 situation or obtain a lien against the vehicle for like a storage             
 lien, as well as go through a bonding provision even though the car           
 has been abandoned on their property for a lengthy period of time.            
 SENATOR RIEGER asked the reason for the three-year provision in the           
 section, which, he added seems awfully long.  MS. HENSLEY explained           
 that amendment was made at the request of Senator Torgerson, and              
 the department did not object to it.                                          
                                                                               
 Number 140                                                                    
                                                                               
 There being no further testimony on CSHB 517(TRA)(title am),                  
 SENATOR RIEGER asked for the pleasure of the committee.                       
                                                                               
 SENATOR GREEN moved CSHB 517(TRA)(title am) be passed out of                  
 committee with individual recommendations.  Hearing no objection,             
 it was so ordered.                                                            
                                                                               
 Number 151                                                                    
                                                                               
           HJR 65 FAA REGULATIONS ON CREW FLIGHT TIME                         
                                                                              
 CHAIRMAN RIEGER brought HJR 65, sponsored by the House                        
 Transportation Committee, before the committee as the next order of           
 business.                                                                     
                                                                               
 REPRESENTATIVE GARY DAVIS, Chairman of the House Transportation               
 Committee, explained the Federal Aviation Administration (FAA) has            
 proposed regulations which are going to severely limit air taxi               
 operators' flight time.  The proposed regulations would limit the             
 amount of weekly and monthly hours that a pilot can fly by limiting           
 them to only 32 hours of flight time in any seven consecutive                 
 calendar days or 100 hours in any calendar month.  This issue is              
 causing great concern, not only at the state level, but at the                
 federal level as well where Alaska's congressional delegation is              
 attempting to exempt Alaska from these regulations.  There has been           
 testimony to indicate that almost all air taxi operators in the               
 state fly in excess of these hours, so this severely limits the               
 existing operations in the state.  HJR 65 requests that Alaska be             
 exempt from the proposed regulations.                                         
                                                                               
 Number 190                                                                    
                                                                               
 SENATOR GREEN commented that 100 hours in a calendar month is                 
 extraordinarily short, and she asked if there has been any                    
 testimony relating to the number of hours an individual can safely            
 fly an aircraft.  REPRESENTATIVE DAVIS replied that there hasn't              
 been any testimony or research on that issue, but the resolution              
 indicates that the committee feels the current operations are                 
 operating safely, and whatever restrictions they currently have are           
 adequate.                                                                     
 Number 209                                                                    
                                                                               
 There being no further questions or testimony on HJR 65, CHAIRMAN             
 RIEGER asked for the pleasure of the committee.                               
                                                                               
 SENATOR GREEN moved HJR 65 pass out of committee with individual              
 recommendations.  Hearing no objection, it was so ordered.                    
                                                                               
 Number 213                                                                    
                                                                               
        CSHB 526(FIN) am AIDEA OPERATIONS/PROJECTS/LOANS                      
                                                                              
 CHAIRMAN RIEGER brought CSHB 526(FIN) am before the committee.  He            
 advised that since the last meeting on the bill the Alaska                    
 Industrial Development & Export Authority (AIDEA) has provided                
 language, which are two different approaches to address the concern           
 about the $10 million authorization.                                          
                                                                               
 Number 227                                                                    
                                                                               
 SENATOR GREEN inquired which version of the bill the suggested                
 languages applied to.  KEITH LAUFER, Assistant Attorney General               
 Governmental Affairs Section, Department of Law, clarified he                 
 drafted them off of the version that came over from the House, CSHB
 526(FIN) am.                                                                  
                                                                               
 Mr. Laufer explained that in response to some of the concerns                 
 raised by the chairman, they have provided for a sunset of ADIEA's            
 bonding authorization similar to the sunset that went into effect             
 on July 1, 1995.  Both versions of the suggested language before              
 the committee accomplish that.                                                
                                                                               
 The second issue the chairman was concerned about had to do with a            
 limitation on ADIEA's ability to bond for its loan participation              
 program.  The version which reads "bonding authorization amendment"           
 provides for a limitation on AIDEA's ability to issue bonds in                
 order to fund participation loans under its participation program,            
 if those bonds would exceed $10 million.                                      
                                                                               
 Number 254                                                                    
                                                                               
 RANDY SIMMONS of the Alaska Industrial Development & Export                   
 Authority, added that under the bonding authorization, the                    
 suggested language that does not have the $10 million limitation              
 for loan participation bonds, there still is in AIDEA statutes a              
 limitation for loan participation, so they could not do a loan                
 participation over $10 million without coming to the legislature              
 for authorization.  It further states that they couldn't do a bond            
 over $10 million.  As an example, he said if they had two loan                
 participations in one year that were $8 million a piece, normally             
 what they would do to save money was issue one bond.  They would              
 group those together and issue one bond for $16 million.  Under the           
 bonding authorization, they could do that.  Under the bonding                 
 authorization amendments, they could not; they would have to issue            
 two $8 million bonds.                                                         
                                                                               
 Number 280                                                                    
                                                                               
 CHAIRMAN RIEGER commented that on that issue he is more comfortable           
 with the existing language, with the exception of adding a sunset             
 provision.  He said another issue that was raised was on the                  
 interest rate on loan participations, and he asked for an                     
 explanation of suggested draft language provided by AIDEA.                    
                                                                               
 KEITH LAUFER explained that elsewhere in statute and being amended            
 in the bill are the two provisions that provide for interest rates            
 on loan participations when AIDEA issues both taxable, in one case,           
 or tax exempt bonds in the other case.  At the last committee                 
 meeting some questions were raised about the interest rate that               
 AIDEA would charge on loans that are not funded with newly issued             
 bonds, but, instead, funded out of AIDEA's own funds or equity                
 without issuing bonds.  The amendment provides the methodology that           
 AIDEA uses to set its interest rates on loan participations funded            
 out of equity.  First, a determination is made whether tax exempt             
 or taxable bonds could be used for the issue.  In other words,                
 certain types of loans can be funded with tax exempt bonds and, in            
 that case, they would set the interest rate using the cost of funds           
 based on the rate that would be available to AIDEA if they were to            
 sell tax exempt bonds.  In the other case, they use the taxable               
 bond rights.                                                                  
                                                                               
 Number 309                                                                    
                                                                               
 CHAIRMAN RIEGER suggested modifying that language when it's in                
 final draft to say that the interest rate shall be determined by              
 regulation, but not lower than what Mr. Laufer had described.  MR.            
 LAUFER and MR. SIMMONS responded that they would not have a problem           
 with his suggested modification.                                              
                                                                               
 Number 315                                                                    
                                                                               
 CHAIRMAN RIEGER then directed attention to language he had drafted,           
 which is a shortened version of the conditions on the Delong                  
 Mountain Transportation System (Red Dog project), to accommodate              
 some of the concerns of Senator Adams.  It deletes from an earlier            
 draft of the bill the requirement for a 6.5 percent floor on the              
 rate of return.  It also edits the language in b(2) to make it                
 clear that the original return on the original investment is one              
 deal, and the additional return on the additional investment is a             
 different deal as far as making sure that the return is                       
 commensurate with the risk.  He said number 3 is something that may           
 still be an issue; however, it no longer reads that the toll-                 
 schedule may be periodically adjusted, but it is permissive that              
 the original toll schedule could be crafted in any way that the               
 parties negotiate.                                                            
                                                                               
 RANDY SIMMONS and SENATOR ADAMS stated they had no problem with the           
 change in number 3.                                                           
                                                                               
 Number 350                                                                    
                                                                               
 CHAIRMAN RIEGER noted the Senate State Affairs version did not                
 provide for the guarantee of interest to apply on the Small                   
 Business Guarantee Program, and he asked if the committee thought             
 that should be added back in or whether that program should have a            
 sunset.                                                                       
                                                                               
 SENATOR TAYLOR asked why the provision was deleted in Senate State            
 Affairs. RANDY SIMMONS responded there wasn't a lot of debate on              
 the issue, and he could not speak as to what the concerns might               
 have been of the senators at that time.  However, he thought it               
 might be a concern of why AIDEA would want to guarantee interest              
 once there was a default.  He added it is something that is                   
 generally in most loan programs, and, if a loan were to go into               
 default, they would give a period of 90 days to guarantee the                 
 interest on their portion until that loan can be basically sold by            
 the bank.  AIDEA doesn't consider it a real problem from their                
 standpoint because the interest is going to be fairly insignificant           
 if it happens, and, even though their program hasn't been used that           
 much so far, they've only had one default on any of the $3 million            
 worth of loans issued so far.                                                 
                                                                               
 Number 397                                                                    
                                                                               
 SENATOR LINCOLN commented that it says it is for the time and in              
 the manner established by the authority by regulation, so it                  
 doesn't seem to be a paragraph that would be detrimental.                     
 Number 430                                                                    
                                                                               
 After further discussion, CHAIRMAN REIGER stated the consensus of             
 the committee was to add back in language limiting the interest               
 guarantee to no more than 90 days.                                            
                                                                               
 Number 434                                                                    
                                                                               
 SENATOR TAYLOR suggested modifying existing language that is                  
 already within the bill that updates what the current cost would be           
 of the Bradfield Road project.  This is just to provide the                   
 opportunity that if in fact it can be developed, that there already           
 is legislative authorization in place to go forward with it.                  
                                                                               
 CHAIRMAN RIEGER asked if AIDEA has a position on this project and             
 if this would work.  RANDY SIMMONS answered that they have not                
 looked at this and he really could not speak to it without looking            
 at it first.  He did point out that original authorization for the            
 project was in the Department of Transportation; however, if it is            
 a feasible project, AIDEA will be happy to look at it.  If the                
 project were to happen within the next couple of years they would             
 not need this because they have a two-year statute of limitation.             
 If it were left out of the bill and in that two-year period it                
 became a viable project, it could either be done by conduit                   
 financing or specific statutory legislation or authorization could            
 be provided under their program.  If it is revenue bonds, AIDEA               
 would not need the authority, but if it's under their development             
 finance, it's a different type of bonding and ADIEA would need the            
 authority.                                                                    
                                                                               
 SENATOR TAYLOR asked if AIDEA could make a deal without this                  
 amendment.  RANDY SIMMONS answered they could if the project were             
 going to be financed by conduit financing.                                    
                                                                               
 SENATOR TAYLOR said he wants AIDEA to have the greatest authority             
 possible so that when someone comes to them with a project that is            
 feasible, they can move forward with some dispatch at that point.             
 RANDY SIMMONS said he didn't want to speak against the Bradfield              
 project because AIDEA just doesn't know anything about it.  Their             
 normal process is to work with a developer beforehand to see if a             
 project is fairly viable just from the start, without having to go            
 through the full feasibility study.  Then AIDEA would ask for                 
 authorization just as they have done with Red Dog, etc.                       
                                                                               
 Number 546                                                                    
                                                                               
 SENATOR TAYLOR said part of the concern is that there is a minimum            
 of probably a two-year EIS, there is a national concern in that it            
 will require an international crossing, which takes a considerable            
 period of time, and if there isn't the authorization to move                  
 forward on the project upfront, it just further slows everything              
 down.                                                                         
                                                                               
 Number 570                                                                    
                                                                               
 CHAIRMAN RIEGER asked if there have been any further developments             
 in the proposal regarding the bulk unloading facility that was                
 testified to at the last hearing.  REPRESENTATIVE NAVARRE said he             
 spoke to Representative Kott's staff who informed him that the                
 representative's position has not changed with respect to the                 
 amendment, although Representative Kott informed him he was leaving           
 it up to the chairman of the Senate Transportation Committee.                 
                                                                               
 Number 580                                                                    
                                                                               
 CHAIRMAN RIEGER stated it was his intention to have a committee               
 substitute drafted for consideration at the next meeting so that              
 final action can be taken on the proposed amendments and the bill             
 can be moved out of committee.  He feels the committee is fairly              
 close on all the issues with the exception of the additional bond             
 authorization project.                                                        
                                                                               
 There being no further business to come before the committee, the             
 meeting was adjourned at 4:40 p.m.                                            
                                                                               
                                                                               

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