HB 517 - MOTOR VEHICLES: REGULATION & INSURANCE Number 087 JUANITA HENSLEY, Chief, Driver Services, Division of Motor Vehicles (DMV), Department of Public Safety, was first to testify. She said HB 517 is a housekeeping bill which provides some efficiency measures and brings the state into compliance with the Federal Motor Carriers Act and the Commercial Driver's License Safety Act. She said noncompliance with those two acts would result in federal mandates and sanctions. CHAIRMAN GARY DAVIS checked in with people at the teleconference site in Anchorage who declined to give testimony until the amendments were raised. Representative James and Representative Sanders joined the committee meeting at 1:25 p.m. Number 370 REPRESENTATIVE JEANETTE JAMES said Amendment 1 relates to truck driving schools. She said these schools follow rules and regulations in order to provide student training. She said there are some schools that are providing training without following those rules and regulations and Amendment 1 supports the schools who are abiding by the law. She made a motion to move Amendment 1. Number 420 CHAIRMAN GARY DAVIS objected to Amendment 1 for purposes of discussion. He said he is reasonably satisfied that in Amendment 1, a person who owns a truck can train someone and still be in compliance. He said Amendment 1 relates specifically to schools. REPRESENTATIVE JAMES cited her personal experience with the trucking profession and stated her support for truck driving schools. Number 608 FRANK DILLON, Executive Director, Alaska Trucking Association, Incorporated, Board Member, Center for Employment Education, testified via teleconference from Anchorage. He said he was in favor of HB 517 and Amendment 1. He said his organization shared Chairman Davis' concern that people who have a casual or a family relationship with someone in the trucking industry would not have the ability to give hints on how to pass the commercial driver's license test. He said his organization did want to make sure that if there were schools, they would have all the proper credentials, curriculum, and the teaching staff would all be qualified truck drivers. He added that truck driving has become complex and a difficult environment in which to operate that training is often required. Number 681 REPRESENTATIVE TOM BRICE referred to his experience in the trucking industry and said a level of consistency in training was needed. He added that the issues involved is one of public safety and that Amendment 1 goes a long way in addressing this issue. Number 741 CHAIRMAN GARY DAVIS mentioned the technical skills and technological knowledge needed to operate a truck. Number 786 MARK JOHNSON, President, Center for Employment Education, testified via teleconference from Anchorage. He said his organization is in support of Amendment 1. He said his organization originally testified before the House Standing Committee on State Affairs and before the House Transportation Committee and he said he did not wish to repeat that testimony. He said Amendment 1 addresses his organizations concerns. He said his organization currently runs above the standards set in Amendment 1 and will continue to do so. Number 847 JAY N. DELANY, Director, Division of Motor Vehicles, Department of Public Safety, testified via teleconference from Anchorage. He said DMV had no objection to Amendment 1 and that it appeared to help them do their job better. Number 892 CHAIRMAN GARY DAVIS withdrew his objection to Amendment 1. Hearing no further objection, Amendment 1 was adopted to HB 517 by the House Standing Committee on Transportation. CHAIRMAN GARY DAVIS made a motion to adopt Amendment 2 and added that DMV had no problem with it. He said there was some concern regarding additions to HB 517 which would cause the bill to lose support and not pass, continuing that state's non-compliance with the federal government. Hearing no objections Amendment 2 was adopted to HB 517 by the House Standing Committee on Transportation. Number 999 REPRESENTATIVE BEVERLY MASEK made a motion to adopt Amendment 3. This motion was objected to by CHAIRMAN GARY DAVIS for purposes of discussion. Representative Masek referred to page seven, line 28, and said Amendment 3 maintains the 300 mile provision rather than reducing it to 150 miles. She said Senator Jay Kertulla made this provision of 300 miles ten years back and there has been no problem with it. She questioned why it needed to be fixed now. REPRESENTATIVE MASEK said most farmers must travel more than 150 miles because of the distances involved in the state of Alaska. She again questioned the need to change as there has not caused a problem. She asked if there was anything on the record for the reason why federal funds would be denied. MS. HENSLEY said the 300 mile radius, from the farm to the market, is in violation with the Federal Motor Carrier Act. She said there is one section, currently in statute, that was changed in 1990 to bring the state of Alaska into compliance. The section states that if a farmer went more than 150 miles from their farm, and if they drove a vehicle that was identified to meet the commercial vehicles requirement, then those farmers would need a commercial drivers license for that vehicle. She said, in 1990, this section of the statute did not get changed and the federal government has advised the state that the state is not in compliance with this one section. MS. HENSLEY said the proposed change to 150 miles does not mean that farmers cannot drive more than 150 miles, but if they do so they must meet the vehicle safety inspections that everyone else operating commercial vehicles must do. MS. HENSLEY said if the statute is not changed to 150 miles, the state will lose the Federal Motor Carrier Safety Assistant Grant Program. She said, current law says, if farmers drive more than 150 miles they must meet the current commercial driver license safety standards. Number 1230 CHAIRMAN GARY DAVIS clarified that the only time that farmers would notice any change in the statute is if they were stopped for a vehicle inspection. Number 1241 REPRESENTATIVE JAMES stated her strong support of farmers in the state. She stated the problems associated with federal government laws which do not fit the special circumstances of Alaska. She mentioned the farmers she knew of would not benefit if the radius were left at 300 miles, because the distances they traveled were either less than 150 miles or greater than 300 miles. Number 1350 CHAIRMAN GARY DAVIS said the 150 mile radius for a farmer driving a truck, over 10,000 pounds or greater, was a safety issue. He said the 150 mile requirement was a safety factor rather than a convenience factor. Number 1418 REPRESENTATIVE JERRY SANDERS asked when the issue of the 300 mile radius became a problem between the state of Alaska and the federal government. Number 1440 MS. HENSLEY said this 150 mile provision was included in the Commercial Vehicle Safety Act passed in 1986. She said Alaska adopted this act and came into compliance with the commercial drivers license. She added there is ongoing compliance requirements that the state must meet. She said the federal government comes back with federal registers yearly or every other year requesting that the state of Alaska meet one more step to keep the federal funds. She said the federal government gave a "drop- dead deadline" by April 1, 1990, to come in compliance with the Commercial Vehicle Safety Act and the state did so, with the exception of this oversight regarding the 150 mile radius. She said the section, Alaska Statute 28.40.100 regarding the definitions of a commercial vehicle, was changed. Number 1504 REPRESENTATIVE DON LONG asked what program the state would lose by not coming into compliance with the federal government. MS. HENSLEY said this program is the Motor Carriers Safety Assistance Program. She said this program by the Office of Motor Carriers, Federal Highway Administration, is a grant program that assists the state in carrying out commercial vehicle safety inspections for vehicles weighing in excess of 10,000 pounds. Number 1538 MR. DILLON said, in 1991, the state of Alaska knew the 300 mile radius was not going to bring the state into compliance with the Federal Motor Carrier Safety regulations, but Senator Kertulla was insistent that changing the radius would break the back of Alaskan agriculture. He said the federal government is seriously considering holding back money if this section is not changed. He said the Motor Carriers Safety Assistance Program money, that would be lost, is the sole source of funds for Alaska's commercial vehicle safety program. Number 1580 REPRESENTATIVE MASEK asked what the level of funding is and if the 150 mile provision would be the only reason for denial of federal funds. Number 1586 MS. HENSLEY said the federal fund is approximately $200,000 plus. She said there were several areas of Alaskan law that needed to be addressed to come into compliance with federal law. She said the 150 mile radius is the only provision related to the Commercial Vehicle Safety Inspection Program. She said the other provisions in the law that relate to federal funding are highway construction funds which would result into a 5 percent to 10 percent sanction of Department of Transportation funding for highway construction. This is an estimated amount of $11 million and $20 million. MS. HENSLEY said the money lost, because of the 300 mile provision, would be the entire funding for the Alaska State Troopers commercial vehicle enforcement unit. She said it would eliminate the State Troopers program for safety inspection of commercial vehicles. REPRESENTATIVE MASEK asked how and where these other areas, where the state of Alaska is not in compliance, were going to be addressed. CHAIRMAN GARY DAVIS said this is an issue of fine tuning the state laws and, in doing so, these small provisions are caught and adjusted with legislation. JOHN QUARTUCCIO, Division Program Specialist, Office of Motor Carrier Safety, Federal Highway Administration, testified via teleconference from Anchorage. He said the federal government has been quite patient with the state of Alaska, waiting over three to four years for the state to come into compliance. He said the 300 mile radius is, currently, the only variance that threatens the Motor Carrier Safety Assistance funding. She said the $200,000 figure is 50 percent of the funding that would be denied the first year. He said a total of $400,000, plus some incidental incentives that the Alaska State Troopers receives, are at risk if the state remains out of compliance with the federal government. Number 1827 A roll call vote was taken on Amendment 3. Representative Masek voted yea. Representatives Davis, Williams, James, Brice, Sanders, and Long voted nay. Amendment 3 failed to be adopted by the House Standing Committee on Transportation. CHAIRMAN GARY DAVIS pointed out that there were two other attempts to get exceptions, due to the special circumstances here in Alaska, and said an exemption can be attempted again. He said it is important to insert a 150 mile provision to prevent the loss of funding. REPRESENTATIVE JAMES said she would check on the 150 mile provision and whether or not it would hurt farmers. She said if she finds that it is a problem, she will address her concerns at the House Judiciary Committee meeting. Number 1877 CHAIRMAN GARY DAVIS mentioned that he had a farmer in his area, who addressed the 150 mile provision as well as the truck weight as a matter of concern to him. He said, to make those changes in HB 517, it would create a fiscal note, because there are revenues that are being derived from farm vehicles over 16,000 pounds. He said an attached fiscal note might jeopardize the success of this legislation. Number 1925 REPRESENTATIVE BILL WILLIAMS made a motion to move the amended CSHB 517 (TRA) with individual recommendations and fiscal note. Hearing no objections CSHB 517 (TRA) was moved from the House Standing Committee on Transportation.