HB 15-COMMERCIAL MOTOR VEHICLE REQUIREMENTS    1:41:02 PM REPRESENTATIVE FEIGE announced that the final order of business would be HOUSE BILL NO. 15, "An Act relating to commercial motor vehicle requirements." The committee took an at-ease from 1:41 p.m. to 1:42 p.m. 1:42:26 PM REPRESENTATIVE WES KELLER, Alaska State Legislature, characterized HB 15 as a pro-business bill. He said the National Federation of Independent Businesses (NFIB), the Alaska Trucking Association, the DMV, and the Department of Transportation & Public Facilities (DOT&PF) like the bill. A similar bill nearly passed the legislature last year and that HB 15 is a good bill with lots of support. He stated that the bill would reduce some regulations to a certain category of trucks - the one-ton truck, the 35 series, the 350 series, 3500 series, and small step vans. This bill would remove these vehicles from being defined as commercial vehicles and it would increase the gross vehicle weight rating (GVWR) restriction from 10,000 to 14,000 pounds. 1:45:13 PM JIM POUND, Staff, Representative Wes Keller, Alaska State Legislature, on behalf of the bill sponsor, reiterated that this bill would update Alaska's statutes. In 1999, when these statutes were written, one-ton pickups were lighter in weight. He reiterated that increasing the weight requirements for commercial vehicles will remove one-ton pickups and similar vehicles from the category of commercial vehicles. He explained that commercial vehicle drivers are subject to certain requirements, including testing, insurance, and medical requirements, such as obtaining annual exams. For example, commercial drivers currently operate pilot vehicles. He recalled one letter in members' packets indicated that the bill may also reduce wear and tear on roads since a one-ton dual wheel vehicle has less impact on roads than a single rear axle vehicle does. 1:46:45 PM MR. POUND referred to Section 1 of HB 15, which would amend AS 19.10.060 and primarily relates to insurance and limits insurance necessary to operate a vehicle less than 14,000 pounds. Section 2 would eliminate duplicate language found in state and federal regulations, noting the DOT&PF could address this in more detail. He stated that Section 3 defines commercial motor vehicles. 1:47:47 PM REPRESENTATIVE FEIGE asked whether the change would increase the limit for commercial vehicles from 10,000 to 14,000 pounds. MR. POUND answered yes. In further response, he responded he understood that 10,000 pounds was standard was adopted to correspond to a one-ton truck but over the years these vehicles have gotten heavier and larger. 1:48:26 PM REPRESENTATIVE GATTIS disclosed she uses a one-ton truck and also a one-ton snowplow. She asked whether he could speak to a farm or agricultural exemption. MR. POUND answered that farm vehicles are exempt in another section of statutes and farm vehicles are not considered commercial vehicles in terms of this bill. 1:49:09 PM REPRESENTATIVE FEIGE referred to page 2, line 7, and to page 3, line 4 of the bill. He asked the reason to delete the language related to transport of hazardous material. MR. POUND understood it was duplicate language between the state and federal language and is not needed. In further response to a question he agreed it was duplicative language. REPRESENTATIVE FEIGE asked whether drivers operating a vehicle for commercial purposes to transport hazardous materials must comply with federal law in terms of placards and other requirements. MR. POUND answered yes, that is his understanding since hazardous materials transport falls under federal requirements. 1:50:22 PM REPRESENTATIVE FEIGE asked whether someone could get the impression the state doesn't regulate hazardous material transportation. MR. POUND answered that hazardous materials is under the total control of the federal government. He surmised the court would say ignorance is not an excuse if someone were to read the state statutes and interpret [that transportation of hazardous materials was unregulated]. 1:51:00 PM REX YOUNG, Chief, Commercial Vehicle Enforcement, Anchorage Office, Division of Measurement Standards & Commercial Vehicle Enforcement(MSCVE), Department of Transportation & Public Facilities (DOT&PF), introduced himself. 1:51:42 PM REPRESENTATIVE FEIGE asked whether the department has any opposition to the bill. MR. YOUNG answered that HB 15 is an excellent idea. Currently, a person under 19 years of age cannot drive a commercial vehicle, yet this type of vehicle can be driven with a class B drivers' license. Therefore, classifying these vehicles as commercial vehicles will keep a contractor's son from being able to get into the business. 1:52:21 PM REPRESENTATIVE JOHNSON referred to page 1, line 8-10 of HB 15, to the deleted language, which read, "AND THAT ARE NECESSARY TO AVOID LOSS OR WITHHOLDING OF FEDERAL HIGHWAY MONEY]." He asked whether this causes any problems for the department. MR. YOUNG answered no. He said the state has been sued several times, that the current language is contradictory to other parts of AS 19, in which the DOT&PF can write regulations to manage and control the highways. He explained that people use the aforementioned language as an argument in court to say the DOT&PF has too many regulations. He related it has literally cost the department hundreds of thousands of dollars. 1:53:20 PM DAN SMITH, Director, Anchorage Office, Division of Measurement Standards & Commercial Vehicle Enforcement (MSCVE), Department of Transportation & Public Facilities (DOT&PF), stated that the division supports changing the definition of a commercial vehicle from 10,000 to 14,000 pounds. The change would remove the regulatory burden on businesses that have been categorized as carriers operating commercial motor vehicles. He explained that vehicles have gotten larger and incidental use of these vehicles or combination of vehicles over 10,000 pounds now meets the definition of a commercial vehicle. He urged members to support HB 15. 1:54:39 PM REPRESENTATIVE JOHNSON asked about combination of vehicles. MR. SMITH responded an officer must determine if a vehicle is commercial vehicle or a non-commercial vehicle for enforcement purposes. Thus, either the gross vehicle weight rating (GVWR) or the combination of both vehicles when a vehicle is coupled to another vehicle is used to make that determination. 1:55:28 PM AVES THOMPSON, Executive Director, Alaska Trucking Association, Inc. (ATA) stated that the ATA is a statewide organization representing the interests of its nearly 200 member companies from Barrow to Ketchikan. He said that freight movement represents a large chunk of Alaska's economy and impacts all of us each and every day. He also said, "The simple truth is, that if you got it a truck brought it." As vehicles have grown larger they now fall into the definition of intrastate motor vehicles that have historically not been considered commercial vehicles, such as pickup trucks, small step vans, small trailers and other similar vehicles. He reported one of the ATA's legislative priorities is to change the statutory definition of an intrastate commercial vehicle to reduce the regulatory burden on small business and HB 15 accomplishes that purpose. This bill would raise the weight threshold on intrastate commercial vehicles from 10,000 to 14,000 pounds gross vehicle weight rating (GVWR) for the purpose of vehicle regulation and inspection. MR. THOMPSON said this change would assist small contractor, carpenters, service providers, and small delivery vehicles and pilot cars. In fact, pickup trucks and small vans are getting larger and heavier and are bumping up over the 10,000 GVWR, becoming by definition a commercial vehicle for inspection and safety regulation purposes. He referred to photos provided in members' packets. He identified pilot cars as the vehicles that accompany oversize loads to serve as an extension of the warning system for the oversize load. He emphasized these pilot cars are almost always used in intrastate commerce and would fall under this bill. MR. THOMPSON informed members that when a vehicle is over 10,000 pounds the driver must obtain a biannual medical certification, complete daily vehicle inspection reports, perform annual inspections, stop at all open weigh stations, and be subject to roadside inspections. Additionally, the employer must maintain a set of driver qualification files and submit annual updates to the DOT&PF to ensure compliance. He stated vehicles over the 10,000 GVWR are subject to federal regulations that have been adopted into the Alaska administrative code. Passage of HB 15 would exclude vehicles that are no more than 14,000 GVWR from unnecessary regulation; however it does not change the commercial status of intrastate vehicles for purposes of registration with the DMV. Therefore HB 15 has no fiscal impact on the state. He offered his belief these vehicles - 10,000 to 14,000 GVWR - do not need this level of scrutiny as typically these vehicles are operated in a limited geographical area and are not subject to wear and tear that other larger commercial vehicles experience. He concluded that the ATA urges members to act favorably on this bill. 1:59:04 PM MIKE MOELLER, Director, Trucking, CPD ALASKA LLC (CPD Alaska), stated that CPD Alaska, the petroleum distribution system operates statewide to deliver petroleum products. He said he is here today to speak in support of HB 15. This bill would update the statutory description of commercial vehicles, taking into account that modern vehicles are built cleaner and with greater safety considerations for their use than older vehicles. Under the bill, CPD Alaska LLC would no longer have to have personnel who drive the F-50 size trucks certified by the DOT&PF. He characterized this class of truck as a heavy-duty pickup truck. Many small businesses have been adversely affected by the DOT&PF requirements and must transfer staff from all over Alaska to Anchorage for physicals that are otherwise unnecessary. Further, these businesses must provide additional equipment and manpower to initiate and maintain records for driver qualification files for staff that does not deliver petroleum products or drive commercial vehicles as part of their normal duties. He emphasized that the additional transportation and personnel costs weigh heavily into the overall cost to operate businesses in rural Alaska. These additional costs are ultimately passed on to the customer, he said. Customers would also benefit, such as those living in McGrath with home heating fuel costs at $7.26 per gallon or in Iliamna at $7.58 per gallon, in particular, during the coldest months of the year. MR. MOELLER said, in addition to the onerous requirements placed on organizations, such as CPD Alaska, the regulations as currently written place an added strain on the Alaska commercial motor vehicle resources. He suggested these costs should be spent to oversee large commercial vehicles rather than on large pickup trucks that could easily be owned and operated by noncommercial licensed individuals with valid drivers' licenses. He urged members to support HB 15. 2:02:23 PM REPRESENTATIVE FEIGE asked for clarification on the previous name for CPD Alaska. MR. MOELLER answered that CPD Alaska was previously Crowley Petroleum Distribution. 2:02:46 PM REPRESENTATIVE FEIGE, after first determining no one else wished to testify, closed public testimony on HB 15. 2:03:14 PM REPRESENTATIVE JOHNSON moved to report HB 15 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 15 was reported from the House Transportation Standing Committee. 2:04:04 PM