CHAIRMAN KELLY brought CSHB 404(TRA) - REGULATION OF COMMERCIAL VEHICLES before the committee as the final order of business. He directed attention to a proposed Rules SCS. SENATOR TAYLOR moved adoption of SCS CSHB 404(RLS). Hearing no objection, it was so ordered. JUANITA HENSLEY, Division of Motor Vehicles, Department of Administration, addressing changes in the Rules SCS, directed attention to Section 18, which increases the unladen weight limit for pick-up trucks and vans from 6,000 pounds to 10,000 pounds. The statue, as written, requires registering a new pick-up truck or van exceeding 6,000 pounds as a commercial vehicle, even though it is not being used for commercial purposes or even registered in a commercial business name. She added the division supports that change, as well the language that requires that if one of these vehicles is registered in a business name or company name, it must be registered as a commercial vehicle. Ms. Hensley next directed attention to Section 23, relating to temporary registration fees for commercial vehicles. She explained the House version of the legislation took registration of commercial trailers and transfered those fees to the truck unit or the power unit that pulled those trailers. However, it didn't take into account the municipal taxes that had been collected from municipalities, and it could have resulted in a substantial loss of revenue for those municipalities. This section basically allows those vehicles to be registered between January and March, with a sunset date of March 30, 1999, and it will allow the trucking industry, the teamsters, and the municipalities and the Alaska Municipal League time to work together to come up with a solution for the loss of those taxes that would have been a result of the bill if it had passed out without this provision. SENATOR TAYLOR asked if it was correct that trailer units would not be registered anymore, the registration will be on the tractor units. MS. HENSLEY replied that is correct. They will still register, but it will be a one-time registration for the lifetime of the trailer. CHAIRMAN KELLY said it was also his understanding is that the Rules SCS is the result of the Division of Motor Vehicles, the teamsters, the Alaska Truckers Association, the Alaska Municipal League, Mat- Su Borough, the Municipality of Anchorage, etc., working together to address problems with the earlier version of the bill. MS. HENSLEY also pointed out that the effective date for all of the DOT sections of the bill will be July 1, 1998, and the DMV sections will be January 1, 1999. CHAIRMAN KELLY noted he had a constituent who bought a new Ford F- 150, and with the turbo charged engine, it edged over 6,000 pounds, which meant that she was going to have to pay commercial rates for her plates, even though the vehicle was for her personal use. SENATOR TORGERSON proposed the following as an amendment to the Rules SCS: Page 11, line 30: Add Section 18 to the immediate effective date. Page 11, line 31: Delete Section 18 from the January 1, 1999 effective date. He said he couldn't think of any reason why changing that weight limit to 10,000 pounds shouldn't have that immediate effective date. He said the reason he was interested in this particular area was because there is another agency that is forcing commercial licenses on guides if they operate in state parks, and that season is coming up soon. MS. HENSLEY stated the change to an immediate effective date would not be a problem for the department. CHAIRMAN KELLY asked if there were any objections to the adoption of Senator Torgerson's proposed amendment, and hearing none, he stated the amendment was adopted. He then requested a motion on SCS CSHB 404(RLS). SENATOR LEMAN moved SCS CSHB 404(RLS), as amended, be passed out of committee with individual recommendations, and that it be approved for calendaring at the discretion of the Chair. Hearing no objection, it was so ordered.