HB 189-SCHOOL BUS INSPECTION FEES  8:04:36 AM CHAIR DRUMMOND announced that the first order of business would be HOUSE BILL NO. 189, "An Act relating to program receipts; and relating to fees for school bus inspections." 8:05:02 AM REPRESENTATIVE TAMMY WILSON, Alaska State Legislature, introduced HB 189, as the sponsor, paraphrasing from the sponsor statement, which read as follows [original punctuation provided]: HB 189 allows the Department of Education to establish by regulation a fee to cover the cost of the school bus inspections required under AS 14.09.030(b)(2). The school bus operator will be charged this fee. REPRESENTATIVE JOHNSTON asked whether the bill affects the number of inspections. REPRESENTATIVE T. WILSON said inspections occur twice a year - as is already in statute - and the bill does not change the inspection process, but only that the fee will be paid by the school bus operators. REPRESENTATIVE JOHNSTON suggested responsibility for the inspections may be held by local - and not state - government. REPRESENTATIVE T. WILSON said the intent of the bill is to allow the Department of Education and Early Development (EED) to charge the fee; however, school districts may be able to address this issue. REPRESENTATIVE FANSLER inquired as to the cost of inspections. REPRESENTATIVE T. WILSON advised the statute does not address the cost; however, [Fiscal Note Identifier: HB 189-EED-SFF-3- 31-17] indicated further details would be determined by regulations. The department could determine a specific amount, or the current amount budgeted - $210,000 - could be used as a baseline. In further response to Representative Fansler, she said currently the state conducts and pays for inspections. The bill would allow the fee to be charged to each private vendor; school bus inspections are necessary but should not be paid for by the state. 8:08:27 AM REPRESENTATIVE PARISH surmised the intent is to shift the cost of the inspections from the state to the school bus operators and restated the question as to what inspections cost. REPRESENTATIVE T. WILSON observed inspections are the responsibility of the operators, as are safety inspections required of other businesses. She returned attention to page 2 of the fiscal note and reported there is an average of 1,055 buses inspected each year and the department would establish an inspection fee of $175 per bus, per inspection. In further response to Representative Parish, she confirmed the fee could be changed by regulation. REPRESENTATIVE PARISH said his concern is the safety of students is the responsibility of the state. REPRESENTATIVE T. WILSON stressed inspections would still be required without any change -- the only difference being who pays the fee. REPRESENTATIVE KOPP observed one way or another $147,000 is going to be paid by the state because if EED establishes a fee, school bus operators are going to negotiate the cost of bus inspections into their contracts. REPRESENTATIVE T. WILSON agreed, however, local school districts may decide that they have a better or more affordable means for fulfilling the inspection requirement. She also suggested school bus operators may find efficiencies. 8:13:48 AM REPRESENTATIVE JOHNSTON questioned who is ultimately liable for school buses. REPRESENTATIVE T. WILSON opined the responsibility falls to those who have contracts for school bus transportation. The related statute may have been enacted to ensure a level of safety through state oversight. However, the statute did not provide for charging an inspection fee. REPRESENTATIVE JOHNSTON advised private contractors have to be bonded, and their liability is probably in partnership with the local school district; she urged for the line of liability to be ascertained. CHAIR DRUMMOND questioned who performs the inspections. REPRESENTATIVE T. WILSON said the department. 8:16:13 AM HEIDI TESHNER, Director, Administrative Services, EED, in response to Chair Drummond, explained currently the department contracts with "resurrection auto" to conduct inspections twice per year; should HB 189 be enacted, the cost of inspections would affect both school districts and contractors because there are district-operated school buses and contractor-operated school buses. 8:17:40 AM ELWIN BLACKWELL, School Finance Manager, School Finance and Facilities Section, EED, in response to Chair Drummond, further explained the Anchorage School District (ASD) operates approximately 122 buses and Reliant Transportation operates approximately 181 school buses. CHAIR DRUMMOND asked whether the department contracts to have all the buses inspected. MS. TESHNER said correct. 8:18:40 AM REPRESENTATIVE SPOHNHOLZ clarified [Fiscal Note Identifier: HB189-EED-SFF-3-31-17] indicates the costs that are currently being paid by the state are moved either to school districts or to contractors. She pointed out the fiscal note cost estimates are: $95,600 in fiscal year 2019 (FY 19); $97,000 in FY 20; $107,900 in FY 21. Further, the fiscal note indicates the state would collect fees to implement the program. REPRESENTATIVE JOHNSTON asked EED to provide inspection data and whether safety violations have been routinely reported. In addition, she questioned whether the contractor [performing the inspections] is a certified school bus inspector. MR. BLACKWELL said the contractor hired by the state has been trained as a school bus inspector; the same contractor has been doing the inspections for approximately 10-15 years and follows specific criteria. REPRESENTATIVE JOHNSTON asked whether a local garage or mechanic could satisfy the requirements for the inspections and avoid travel costs. MS. TESHNER offered to provide the data requested. REPRESENTATIVE PARISH observed the bill does not provide for a change in the contractor who is currently performing inspections. MS. TESHNER agreed. 8:23:40 AM CHAIR DRUMMOND asked the bill sponsor whether the number of inspections per year is sufficient, or whether one inspection per year would be adequate. REPRESENTATIVE T. WILSON noted the intent of the bill is not just who pays for the inspections but to point out some regions have public bus transportation systems that are not inspected, and public safety issues are not a topic of discussion. She opined if inspections were determined by "local control" inspections of school buses and of public transportation may increase. Data from the department - indicating the number of past violations - may be informational, but the liability is held by the local government, school districts, and bus operators. The primary intent is to extract the government out of the process, and to look for cost savings and more flexibility in student transportation. CHAIR DRUMMOND related some school districts have difficulty finding school bus drivers to train; further, she was informed ASD is cooperating with the public transit system in Anchorage [to provide student transportation]. REPRESENTATIVE T. WILSON acknowledged options may well be available using public transportation systems already in place; however, the liability issue remains a concern, and to ensure children get to school in the safest way possible. 8:27:47 AM [HB 189 was held over.]