HB 280-COMMERCIAL MOTOR VEHICLES:REGULATIONS Number 1254 CO-CHAIR HOLM announced that the final order of business would be HOUSE BILL NO. 280, "An Act relating to the regulation of commercial motor vehicles to avoid loss or withholding of federal highway money, and to out-of-service orders concerning commercial motor vehicles; amending Rule 43.1, Alaska Rules of Administration; and providing for an effective date." Number 1250 AVES THOMPSON, Director, Division of Measurements, Standards, and Commercial Vehicles Enforcement, Department of Transportation & Public Facilities (DOT&PF), testified on HB 280 and answered questions from the members. He told the committee the division is responsible for commercial vehicle size, weight, and safety enforcement; commercial vehicle operating credentials; and enforcing and maintaining standards for weights and measures used in commerce in Alaska. The key elements of the commercial vehicle safety program include fixed weigh stations and mobile and commercial vehicle enforcement. The commercial vehicle enforcement officers conduct driver and vehicle safety inspections, enforce size and weight regulations, and inspect hazardous materials transport. He explained that at the beginning of the fiscal year of 1998, Executive Order 98 consolidated commercial motor vehicle regulation and enforcement, from [what was then the Department of Commerce & Economic Development] and the Department of Public Safety into DOT&PF. MR. THOMPSON told the committee the consolidation of these programs into one state agency was intended to result in greater convenience to industry and the public, as well as more efficient management of the programs. He said to a large extent this has been accomplished. When the consolidation was implemented, one minor omission occurred in the transfer of the necessary regulation promulgation authority. While most of the authority to operate the truck size, weight, safety, and permitting programs was given at the time to the Department of Transportation & Public Facilities, the authority to promulgate regulations for driver safety, vehicle requirements, and hazardous materials transport was not transferred and currently resides in the Department of Public Safety. Number 1125 MR. THOMPSON told the committee that HB 280 transfers that authority to the Department of Transportation & Public Facilities and completes the consolidation of the commercial motor vehicle regulatory and enforcement programs started in Executive Order 98. He said that except for matters relating to the licensing of drivers for commercial motor vehicles, which is reserved for the Division of Motor Vehicles, HB 280 gives the authority to adopt regulations necessary to avoid the loss or withholding of federal highway money to the Department of Transportation & Public Facilities. These commercial motor vehicle safety regulations include equipment standards, working conditions for drivers, and vehicle inspection standards. The hazardous materials transport regulations deals with notification, movement, labeling, and documentation of hazardous materials loads. In addition, HB 280 sets a prohibition in Title 28 against operating a commercial motor vehicle after being placed out of service under a regulation adopted under Title 19. Other sections provide for the changes to the bale schedule and allow for the transition period for the Department of Public Safety regulations to continue to be enforced until the new regulations are adopted by the Department of Transportation & Public Facilities. The department is prepared to proceed with the adoption of regulation process once these legislative changes are effected. MR. THOMPSON said the Federal Motor Carrier Administration regulations provide that a state becomes ineligible for basic program or incentive funds under the Motor Carrier Safety Assistance Program for failure to adopt new regulations or amendments to the federal motor carrier safety regulations or the federal hazardous materials regulations within three years of its effective date. Mr. Thompson told the committee adoption of these changes has not occurred since 1995 and the State of Alaska is out of compliance. In the federal fiscal year 2003, Alaska will receive $685,500 in basic program and incentive funds. Passage of this bill is critically important, as DOT&PF needs the authority to adopt the regulation changes to avoid the loss or withholding of federal funding, he said. Loss of these funds through the failure to pass this legislation and the subsequent failure to adopt the regulations will virtually eliminate the state's commercial vehicle safety effort. Mr. Thompson told the committee the bill's provisions correcting the regulation adoption authorities problems and the supporting language in the existing statute are supported by the Alaska Trucking Association, the Alaska's Teamsters Local 959, and the Associated General Contractors of Alaska. The Department of Public Safety and the Department of Administration also support this legislation. Mr. Thompson urged the members to move HB 280 out of committee with a favorable recommendation. Number 0959 CO-CHAIR MASEK asked if there is a fiscal note attached to this bill. MR. THOMPSON responded that there is a zero fiscal note. CO-CHAIR MASEK commented on the language on page 1, lines [9- 11], "implement requirements imposed by federal statute", by saying she is sure that complying with federal statutes will cost the state money. She said, "Every federal mandate that is shoved down the throat of the state comes back and bites us in the butt." CO-CHAIR MASEK asked Mr. Thompson to explain Executive Order 98. MR. THOMPSON responded that Executive Order 98 was issued by the then-Governor Knowles. It consolidated the trucking regulations and enforcement activities from Department of [Commerce] & Economic Development and the Department of Public Safety into the Department of Transportation & Public Facilities. CO-CHAIR MASEK asked Mr. Thompson if the state will fail to get the $685,500 in basic program and incentives funds if the legislature fails to pass this bill. MR. THOMPSON responded that the state has already received that funding for 2003; however, failure to pass this bill will put the FY 04 funds in jeopardy. The Motor Carrier Safety Assistance Program has been receiving the benefits for that program since 1991, and this existing language on page 1, lines 9-10, was necessary to implement requirements in both the federal and state statutes. He told the committee that language has been in Title 28 since 1991. Mr. Thompson clarified that this will not implement any new requirements, but simply transfer the authority from Department of Public Safety to the Department of Transportation & Public Facilities so the regulations can be updated. Mr. Thompson explained that the identical bill was introduced in the last legislative session and passed the House of Representatives 37-0. It went over to the Senate in the final days and was lost in the swirl of the end of session. So it died last session and has been reintroduced this year. Number 0777 CO-CHAIR MASEK asked how much money the state lost because the bill did not pass. MR. THOMPSON responded that there were no funds lost, but the state was put on notice that it needs to make this change to update the regulations. After Executive Order 98, the Department of Transportation & Public Facilities went to the Department of Law and was told that Department of Transportation & Public Facilities does not have the authority to change the regulations. This piece of legislation would correct that authority problem. REPRESENTATIVE KOOKESH told the committee he has spent time reading the legislation and talking to the sponsor and believes this bill is a good idea. It is a housekeeping matter. He suggested the committee move the bill on to the next committee. Number 0703 FRANK DILLON, Executive Vice President, Alaska Trucking Association, testified in support of HB 280. He told the committee the association fully supports this bill based on the explanations Mr. Thompson provided the committee. This is, as Representative Kookesh noted, a housekeeping bill. REPRESENTATIVE KOHRING asked for clarification that this bill does not create new regulations, but simply transfers authority from one state department to another. MR. DILLON responded that is correct. Number 0637 BARBARA HUFF TUCKNESS, Director of Legislative and Governmental Affairs, Alaska's Teamsters Local 959, testified in support of HB 280. She agreed that this bill is a housekeeping bill. Last session the efforts of Representative Kohring were most helpful in pushing this bill through the House of Representatives and she hopes that this year with everyone's assistance the bill will make it all the way through the legislature. REPRESENTATIVE OGG told the committee in discussing the bill with the sponsor, he believes it is a good bill. He suggested that there be a change in the title to assure more clarity in the bill. The language could say something about "transferring authority from Department of Public Safety to Department of Transportation & Public Facilities." He pointed out that is what is being done, but the title does not say that clearly. CO-CHAIR HOLM said the language was drafted by Legislative Legal and Research Services. MR. THOMPSON commented that he believes the title adequately describes the bill. He said he discussed this with Representative Ogg this morning, but said in the interests of moving the bill along, he believes the title adequately addresses the issue. Number 0484 REPRESENTATIVE FATE moved to report HB 280 out of committee with individual recommendations and the zero accompanying fiscal notes. There being no objection, HB 280 was reported from the House Transportation Standing Committee.