HOUSE BILL NO. 404 "An Act relating to the regulation of commercial vehicles; relating to the temporary registration of out-of-state commercial vehicles; relating to registration fees for commercial vehicles; and providing for an effective date." CS FOR HOUSE BILL NO. 404(TRA) "An Act relating to the regulation of commercial vehicles; relating to the temporary registration of out-of-state commercial vehicles; relating to registration fees for commercial vehicles; and providing for an effective date." Co-chair Sharp reviewed the calendar for today. He first called HB 404. PETER ECKLND, staff to Representative Bill Williams was invited to join the committee. He read the sponsor statement into the record. He said the bill would promote safer commercial vehicles. Senator Donley asked the about the changes to the bill this year as compared to last year. Mr. Eckland said he would have to check with the sponsor. He will also ask if the sponsor has any objection to adding to the bill the requirement for truckers to know the insurance telephone number. Mr. Eckland said there were representatives present from the Department of Transportation and Public Facilities, Division of Motor Vehicles and the industry present to answer any specific questions. In response to questions from Senator Adams, Mr. Eckland said he did not think there would be any impact on the fiscal note. The increase of permit fees for out-of-state trucks would generate revenue for the State. However, he said that the fees were still less than what Alaska trucks were charged for out-of-state and the provinces. Senator Parnell noted sections 18 and 19 and asked about the changes to the annual registration fees. Mr. Eckland explained these sections for the committee. He said the increases as outlined were offset by a decrease in the one- time registration of commercial trailers of $10. FRANK DILLON, Executive Vice-President, Alaska Truckers Association was invited to join the committee. He said the Alaska Truckers Association supported HB 404 because it would level the playing field amongst competitors. He has worked extensively with Division of Motor Vehicles and the Department of Transportation and Public Facilities. In response to an earlier question by Senator Donley he said section 1 of the bill answered that. He agreed that all commercial vehicles should be inspected twice yearly according to the Federal Motor Vehicle Safety Standards, insuring all mechanical operations be up to standard. The Alaska State Troopers carry out random safety checks. The bill would also raise fees for out-of-state trucks and the $300 - $350 cost for a temporary permit did not seem out of line. He noted that Alaska trucks were paying approximately $1000/trip into the Yukon Territory. He referred to the new money the State would collect and said it would be used to keep the weigh station in Tok open twenty-four hours a day. This will help to insure trucks have proper insurance, qualified drivers and are safe. The bill also eliminates the requirement for the annual registration of commercial trailers with the Division of Motor Vehicles. The money currently collected will be added to the registration costs of commercial power units in the corresponding weight classes. This would maintain a revenue neutrality as far as the amount of money that was collected by the State. A built-in $10 fee for a one-time tag would basically show a permanent registration of that trailer in the State of Alaska. Another important feature of this bill, as far as the trucking industry and the economy of Alaska was that there is a program adopted by about forty-five states and soon to be adopted by all outside states, with the exception of Hawaii, along with six Canadian provinces and territories called the International Registration Plan. It would allow for truck equipment to move between various jurisdictions whether they be Canadian or other states, and only pay based on the amount of mileage used in other states, your base state. Presently it is not unusual for a tractor that operated for instance from the Lynden fleet in the western states to have more than one hundred different pieces of paper they had to carry with them to be legal in the jurisdictions it operated in. This was very inefficient and costly. By eliminating the annual registration requirements the State would become eligible to participate in this International Registration Plan. This would allow for "transparency of the trailing equipment" between jurisdictions because all fees would be shifted to the power units. He said the bill would do nothing to diminish the number or types of inspections that are taking place. The Association felt it was a good, comprehensive piece of legislation. It has wide support and they urged passage of the bill. BARBARA HUFF-TUTNESS, Director of Governmental and Legislative Affairs, Teamsters Local 959 and on behalf of the Teamsters supported HB 404. They supported the adoption of the Federal Motor Carrier Safety Program, which from the Teamsters' perspective is a very important issue. This would be a great asset to the State of Alaska and for all those who do drive or utilize the roads. The temporary increase for registration would level the playing field. They also supported keeping the weigh stations open extra hours. This would insure trucks on the road are legal weight and also insure public safety. They also agree with the transfer of the registration of the trailers to the power units. PETER BLANAS, Teamster Local 959, testified via teleconference from Anchorage. He said because weigh stations were not open twenty-four hours and drivers did not have to keep up their logbooks they were able to make many multiple trips, and he felt this was the greatest contributing factor to fatigue related accidents. Scale operators also warn drivers of pending weather conditions, but also can summons help in an emergency, or maintenance crews. Monies collected from outside operators may also be available for funding State Department of Transportation inspection programs. He noted for the committee that as a truck driver he had received on inspection in the last four years and that was because he found the inspector and requested it. He supported passage of HB 404. Senator Adams said it was only necessary to call the Department of Transportation and Public Facilities to testify regarding amendment #1. Senator Torgerson MOVED amendment #1. Senator Adams OBJECTED. Senator Torgerson said the intent of the amendment was to clarify that a vehicle or motor home that was not primarily used as a commercial entity would be exempt. It would also include a pick-up that did not exceed six thousand pounds. The definition section further clarified "not to exceed six months". JUANITA HENSLEY, Division of Motor Vehicles was invited to join the committee. Senator Adams asked Ms. Hensley to explain what effect this amendment would have on the agency. Ms. Hensley said she read the amendment that a passenger vehicle or motor home not primarily used for or maintained for transportation along with a pick-up truck or van not exceeding six thousand pounds would be exempt. She did not have any numbers at this time as to how many individuals would be affected. The division had this restriction in statute several years ago however it was not enforceable. She wanted to know how to enforce whether someone was using the vehicle six months of the year or not and what portion of the registration fees would they collect. She objected to going back to the way it was when it was unenforceable. Senator Donley asked what the difference in costs were regarding a small van or pick-up. Ms. Hensley said registration fees for a pick-up truck or van not exceeding six thousand pounds was currently $78. Senator Donley asked what the cost was if they were commercial. Ms. Hensley indicated that for a vehicle more than five thousand pounds but less than twelve thousand and one pound was $170. Senator Donley said it seemed that if a commercial fee had to be paid it would be deductible from the costs of running the business. Ms. Hensley concurred. Senator Torgerson asked if commercial vehicles were required to stop at weigh scales. Ms. Hensley deferred to the Department of Transportation. AVES THOMPSON, Chief, Weights and Measures, Division of Measurement Standards and Commercial Vehicle Enforcement, Department of Transportation and Public Facilities was invited to join the committee. He said commercial vehicles required to stop at weigh scales were those of ten thousand pounds or more unladen weight. A small trailer would not be required to stop. Senator Torgerson said the vehicles were not being inspected, rather just monies being collected. He asked what was the benefit of making these individuals come under commercial regulations. Ms. Hensley said the intent was because they use the roads. She said some of the vehicles in combination with a boat may exceed the ten to twelve thousand pounds weight limit. She further noted that any vehicle being used in furtherance of business must be registered. Senator Parnell asked if there was more reasonable language to satisfy all? Ms. Hensley responded "not so far". Co-chair Sharp, with reference to the amendment, asked Ms. Hensley if she could come up with an estimate on the loss of revenue. Senator Torgerson said since it was not being paid now there was no loss of revenue. Maybe it would be an increase in revenue if they got all individuals to pay. Ms. Hensley said she could come up with some figures based on the four truck classes they had under categories 41 and 42. Co-chair Sharp noted that amendment #1 was still pending and there had been objection. By a roll call vote of 3 yeas (Pearce, Torgerson, Parnell) and 3 nays (Sharp, Donley, Adams) the amendment FAILED. Senator Donley MOVED CSHB 404(TRA) and WITHOUT OBJECTION it was REPORTED OUT with individual recommendations and previous fiscal note from the Department of Transportation and Public Facilities in the amount of $512.9 and an indeterminate fiscal note from the Department of Administration, Division of Motor Vehicles. Co-chair Sharp noted SB 295 had been removed from the agenda and called SB 345.