HOUSE TRANSPORTATION STANDING COMMITTEE February 25, 1998 1:11 p.m. MEMBERS PRESENT Representative William K. (Bill) Williams, Chairman Representative Beverly Masek, Vice Chair Representative John Cowdery Representative Bill Hudson Representative Jerry Sanders Representative Kim Elton Representative Albert Kookesh MEMBERS ABSENT All members present COMMITTEE CALENDAR * 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." - MOVED CSHB 404 (TRA) OUT OF COMMITTEE (* First public hearing) PREVIOUS ACTION BILL: HB 404 SHORT TITLE: REGULATION OF COMMERCIAL VEHICLES SPONSOR(S): TRANSPORTATION Jrn-Date Jrn-Page Action 02/12/98 2312 (H) READ THE FIRST TIME - REFERRAL(S) 02/12/98 2312 (H) TRANSPORTATION, FINANCE 02/25/98 (H) TRA AT 1:00 PM CAPITOL 17 WITNESS REGISTER PETE ECKLUND, Legislative Assistant to Representative Williams Alaska State Legislature Capitol Building, Room 424 Juneau, Alaska 99801 Telephone: (907) 465-3424 POSITION STATEMENT: Testified on behalf of the Transportation Committee on HB 404. JUANITA HENSLEY, Chief, Drivers Services Division of Motor Vehicles Department of Administration P.O. Box 20020 Juneau, Alaska 99811 Telephone: (907) 465-4361 POSITION STATEMENT: Testified in support of HB 404. DENNIS POSHARD, Legislative Liaison Office of the Commissioner Department of Transportation and Public Facilities 3132 Channel Drive Juneau, Alaska 99801 Telephone: (907) 465-3904 POSITION STATEMENT: Testified in support of HB 404. FRANK DILLON, Executive Vice President Alaska Trucking Association, Incorporated 3443 Minnesota Drive Anchorage, Alaska 99503 Telephone: (907) 276-1149 POSITION STATEMENT: Testified in support of HB 404. MARK TABBUTT, General Manager Totem Ocean Trailer Express 2511 Tidewater Anchorage, Alaska 99501 Telephone: (907) 276-5868 POSITION STATEMENT: Testified in support of HB 404. PETER BLANAS Teamster's line driver 427 West 87 Avenue Anchorage, Alaska 99515 Telephone: (907) 344-7887 POSITION STATEMENT: Testified in support of HB 404. BARBARA HUFF-TUCKNESS, Director Governmental and Legislative Affairs Teamster's Union Local 959 520 East Thirty Fourth Avenue Anchorage, Alaska 99503 Telephone: (907) 565-8200 POSITION STATEMENT: Testified in support of HB 404. LINDA LEARY, Vice President of Sales Carlile K&W Transport 1813 East First Avenue Anchorage, Alaska 99501 Telephone: (907) 276-7797 POSITION STATEMENT: Testified in support of HB 404. ACTION NARRATIVE TAPE 98-8, SIDE A Number 0001 CHAIRMAN WILLIAM K. (BILL) WILLIAMS called the House Transportation Standing Committee meeting to order at 1:11 p.m. Members present at the call to order were Representatives Williams, Masek, Cowdery, Hudson, Sanders, Elton and Kookesh. HB 404 - REGULATION OF COMMERCIAL VEHICLES Number 0050 CHAIRMAN WILLIAMS announced HB 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," is before the House Transportation Standing Committee. Number 0069 PETE ECKLUND, Legislative Assistant to Chairman Williams, read the following sponsor statement into the record: "The purpose of HB 404 is to improve efficiency at Division of Motor Vehicles (DMV) and to improve efficiency and safety of freight movement into, out of, and within Alaska. Also, adoption of HB 404 will allow the state to participate in the International Registration Plan of the trucking industry. "Our current state commercial vehicle inspection law is unworkable. The bill proposes to conform our inspection program with inspection criteria found in the Federal Motor Carrier Safety Regulations. "Also, HB 404 will increase temporary fees for out-of-state trucks that wish to operate in Alaska from $50 to $350. This will bring Alaska fees closer to what is charged by other states and provinces issuing temporary permits. Revenue generated from this fee may be appropriated by the legislature to operate weigh stations and commercial vehicle safety programs. "Further, HB 404 would eliminate the requirement for annual registration of commercial trailers. The fees collected from the registration of commercial trailers would be transferred to the cost of registration of commercial vehicles, or 'power units.' Hence the bill is revenue neutral. The change is required if Alaska wants to become part of the International Registration Plan, which allows for a simplified method of prorating fees to other jurisdictions in which Alaska commercial vehicles operate, and vice versa. The state and industry will gain substantial efficiencies by not having to issue and physically tag over 20,000 commercial trailers annually. "In short, HB 404 will create efficiencies in government and the private sector, and will create a safer transportation environment. The safer our commercial vehicles are on our highways, the safer all of us will be." MR. ECKLUND informed the committee there are two amendments to be considered, LS1528\A.1 [2/20/98] and LS1528\A.3 [2/23/98]. Number 0395 JUANITA HENSLEY, Chief, Division of Motor Vehicles, Department of Administration, testified before the committee. She said, "We feel that it's going to be a real efficiency measure for the division as well as offering a lot of efficiency measures for industry as a whole in the state of Alaska." Number 0422 REPRESENTATIVE JOHN COWDERY said, "I've heard that, because we don't have this in effect at their borders that there's many trucks that come over the highways into Alaska, but pay very little or no fees in competing with people who do." He asked if that was a fact. MS. HENSLEY replied it has been reported to her as well. She said, "That there are, and I know that there are by the number of permits that are issued, vehicles that are crossing, coming into Alaska, that are not registered in Alaska and they're taking actually employment away from our own truck drivers." REPRESENTATIVE COWDERY said some of them come through when the scales are closed and do not even register. MS. HENSLEY said he should talk to someone in the DOT/PF because DOT/PF is responsible for the weight scales. Number 0514 REPRESENTATIVE BEVERLY MASEK referred to page 8, line 23 through 28, and asked how the fees were calculated in this section. MS. HENSLEY replied, "What was considered for those fees is to take the number - the number was derived by dividing the current trailer revenue by the four truck classes, and then dividing the four equal amounts of the truck units per class. So you take the number of trailers and the number of truck units, and it was a transfer of the fees from the trailers to the power units. And that's how that was derived, it was basically an equal split across. As close as equal as we could get. ... " REPRESENTATIVE MASEK asked if those procedures were used in the past. MS. HENSLEY pointed out that it is a new concept. She indicated Alaska and California are the only two states, that she is aware of, that use and register trailers. The other states only register the power units and the fees are all attached to the power units. She said, "The problem in Alaska, and a lot of other states, the reason they've gone to that, is if we have a company that has ten trailers registered and eight power units, and they need the registration of that unit - of the trailer runs out - and that driver is in South Carolina, their plate on that trailer is expired. They could have problems coming back across the borders and coming in through Canada to get back in the United States. With that trailer expired, it is so hard for our companies to track around all the trailers that they have to make sure that the little tab gets on that plate. And this is basically going to be a real benefit to our industry." Number 0690 REPRESENTATIVE COWDERY indicated many trailers may be out-of-state for some time. He said, "In Alaska, most of our things come from out-of-state, and we would like to keep that revenue..." People that come from Canada should pay. Number 0791 REPRESENTATIVE BILL HUDSON referred to page 8. He assumed there is no effect on any of the other listed vehicle units like a tractor or ambulance. He asked if they were under that weight, would there be any unintended increases for other units. MS. HENSLEY replied no, it is strictly for those that are registered for commercial purposes. CHAIRMAN WILLIAMS asked if the increased rates were for out-of- state trucks, or in-state. MS. HENSLEY replied these rates are strictly for those that are registered within the state of Alaska. She said, "A company has a right, if they're operating in the state of Alaska, they can register that vehicle in the state of Alaska to operate here and pay the commercial vehicle rates. Those coming across that are not registered, in Alaska, these rates do not fall with those vehicles. Those have to pay the temporary registration plates that are in the other section of the law." CHAIRMAN WILLIAMS asked what section. Number 0883 MS. HENSLEY replied page 7, lines 10 through 14. CHAIRMAN WILLIAMS asked what the fee currently is for a temporary permit. MS. HENSLEY replied $10 to $50, depending on the weight of the vehicle. CHAIRMAN WILLIAMS as if that was the maximum fee the state could get. MS. HENSLEY replied yes. REPRESENTATIVE HUDSON said, "For a commercial bus this would be like tour busses and things of this nature coming into Alaska. That would also be an increase from $50 to $350. Is that correct?" Number 0938 MS. HENSLEY replied, "For those tour bus companies that choose not to register those vehicles in the state of Alaska, yes that would be the case. Our tour industry, such as the Princess, Gray Line, Westours, all those, those vehicles are registered in the state of Alaska. ... So those individuals would not have to pay the $350, they would have to pay the fees for registering this commercial vehicle." REPRESENTATIVE HUDSON asked about how many of these do we look at on an annual basis that would fit the increased fee. MS. HENSLEY deferred that question to the Department of Transportation and Public Facilities. Number 1012 DENNIS POSHARD, Legislative Liaison, Department of Transportation and Public Facilities (DOT/PF), pointed out the departmental expert is on scheduled leave. He stated DOT/PF supports HB 404. REPRESENTATIVE COWDERY indicated he spoke with Commissioner Brownfield, DOT, regarding this concept. He asked approximately how many vehicles come through Tok, the Alcan [Alaskan-Canadian] Highway that do not pay because the scales are only opened a short time. MR. POSHARD replied DOT/PF does not know how many come through after hours. He said, "We have estimated that we will collect revenues from approximately 1,750 vehicles at the Tok boarder, and that's of the temporary registration fees. That includes the ones that don't currently pay, but also our estimation of how many come across that do not currently pay." Number 1130 REPRESENTATIVE COWDERY said trucking industry people say it is a fact that some of these trucks come over, they are over legal limits and weights, and things like that. And some of them are carrying hazardous materials that Alaska laws forbid, they may transfer to our own trucks. He said he understands that happens quite frequently. MR. POSHARD replied, "Yes, since that kind of stuff is happening illegally, obviously we don't have any kind of handle on it or wouldn't be able to make some sort of determination. But certainly, we hear reports of trucks that come across illegally that either don't meet the required Alaska safety standards or they are hauling some form of cargo that is not legal or whatever. But we would have no way of knowing that short of having the station open 24 hours and requiring everybody to stop. And that's part of what our fiscal note will allow us to do is to provide three new positions in Tok and to keep that station open 24 hours a day." Number 1217 REPRESENTATIVE JERRY SANDERS asked, "When they come in temporary it's for 60 days. Are they allowed to come in and work for Alaskan companies up and down the road for 60 days, or do they just - a trip permit to come in and unload and go back? Or perhaps load and go back." MR. POSHARD said the way he understands it, they are allowed to operate within the Alaska borders and drive on our roads for 60 days. If they choose to conduct business within Alaska during that time period, he believes they are allowed to do that. REPRESENTATIVE SANDERS asked, "The significance of the 60 days, can you tell me where that comes from, is that necessary, is that federal, is that just something somebody grabbed out of the sky, can it be reduced, or should it." MR. POSHARD replied there is an amendment that will reduce it to 30 days. He said, "Our initial thinking, going to 60 days was the current registration period was for 10 days and it was between $10 and $50 and we thought with increasing the fee to $350 there ought to also be at least some increases in the period of days. I think we just picked 60 in working with other groups. But I think that there is some merit to considering other time periods." REPRESENTATIVE SANDERS agreed, 60 days is too long. Number 1330 FRANK DILLON, Executive Vice President, Alaska Trucking Association, Incorporated was next to testify. The Alaska Trucking Association is a trade association which is 38 years old with statewide representation amongst truck users of all kinds. He encouraged the members to support HB 404. He said, "HB 404 is the culmination of some cooperative effort on the part of various different agencies in state government including DOT/PF, DMV, Department of Public Safety. It's had input from the trucking industry from shippers who use the trucking industry and has the support of labor." MR. DILLON indicated there are several key provisions in HB 404 that are of great interest to the trucking industry and would be of great benefit to the economy of Alaska. He said, "Those include the statute which cleans up a problem we've had with commercial vehicle inspections, which we'd hope to rectify last year in HB 83, which was favorably passed by the House and Senate. Unfortunately in the process of getting to the end of the legislative tube, it was amended and became something that would not have worked. That was vetoed by the governor and we are glad that it was not overridden because that piece of legislation would not have solved our problem with truck inspections. However, HB 404 does and what it does is it sets the federal standard which is used throughout the country and in Alaska for the last seven years as basically the law of the land for truck inspections, and mandates an annual inspection and a daily inspection that is are very comprehensive in its nature and qualifies the drivers as well. But it gets us in line with the federal government and it gets us out of a bind with a law that was passed in 1986 which was never funded and which we had never implemented and would be very expensive and really without any safety merit if we were to implement it today. That's the first section that we think is extremely important one in this bill and has been well crafted." MR. DILLON said, "Secondly, the fee for out-of-state trucks is something that we felt was unfair for some time and we're very happy that the DOT/PF has agreed with us that that fee should be raised so that trucks that enter the state of Alaska, that are here to deliver freight, aren't here with a carte blanche to take work during the summertime from Alaska drivers and Alaska trucking companies. And we applaud the amendment that reduces this from 60 to 30 days, we believe that 30 days allows a person reasonable time to come up here, deliver his freight, wait for a back haul shipment, say fish or something else to take outside without getting into the business of becoming a competitive trucking company in Alaska, hauling freight during our busy time of the season and the best weather of the year. Now if those kind of trucks came up in the dead of winter and took some of the freight on the Dalton Highway, it would be different, but they don't ever seem to show up at that time of the year." MR. DILLON said, "The third portion of the bill is the one that eliminates the annual registration of commercial trailers with DMV. This has been the trend throughout the country, it does allow us, as was mentioned earlier to become eligible for the International Registration Plan (IRP) which is a greatly simplified way of prorating the use of equipment in different jurisdictions. Currently, there are a number of provinces, and most of the states that are part of that plan, it's predicted by the year 2000 that all the states would be participating in it. Hopefully, Alaska would complete the full 50-state implementation, in order to do that we need to get rid of the trailer registration. We had applied for an exception to see if they would allow us to keep our current trailer registration method and be part of IRP and this last September the IRP Executive Committee rejected that exception and said, 'No, if you want to get into the plan you need to do away with your annual trailer registrations.' That has no effect on safety because the registrations basically are not a safety inspection. It's something that's done without the trailer being inspected by anyone from the state." MR. DILLON said, "It is a revenue-generating-mechanism, we believe that that's reasonable and that's why we've accepted the fact that we could shift those from the trailers to power units by weight classification and not see too great of an increase. We still have the lowest, and I perhaps shouldn't say this but I'll mention it anyway, we still have the lowest registration fees for commercial vehicles, and I don't want to give anyone any ideas, in the country. Most of the increases are between - I believe $30 and at the maximum $100 per power unit. It's not the type of increase that would actually jeopardize anyone's business in any way shape or form, to be what I would consider a hardship." Number 1563 MR. DILLON said, "It does, however, provide a real efficiency at DMV by eliminating more than 20,000 transactions that have to take place right now with DMV personnel. And again, those transactions cost, according to the DMV director's office, somewhere between $5 and $8 per transaction. That's where we derive the savings idea of $100 thousand plus. It also, of course, frees up those windows where we do have people with a large fleet, fleets with different times of the year send a person time after time, after time, because of the methodology of registration of taking only 25 units at a time, a person could spend days at a time at DMV registering trailer equipment. If the state collects the same amount of money for it, and we don't have to go through those transactions, we can then use this equipment in interstate and international transportation easier. We fit this all together into this package and we think it makes a very very good bill that we strongly urge your support of." REPRESENTATIVE COWDERY reiterated the fact that trailers leave Alaska and are gone for some time. He asked if they are off- loaded. MR. DILLON replied, "We have trailers now in companies that operate internationally from Alaska. We have freight shipments that can end up and do in every state and every province in North America, and believe it or not, even in Mexico. The trucking industry is quickly becoming much more of an international player. The agreements that we're hoping will eventually be implemented in NAFTA [National American Free Trade Agreement] will provide for freer flow of this equipment and the ability of our carriers from Alaska to get into markets that traditionally, because of regulatory thresholds have been unavailable in the past." Number 1659 MR. DILLON continued, "Alaska was one of the first states in the country to open up the trucking industry through the process of deregulation to completely free-market-based enterprise. That's what's happening pretty much nationwide now, the federal government has mandated that, amongst the states we're seeing the same thing in Canada, we're seeing the same thing in Mexico. And all what that does is it lowers the cost of moving everything, which I've said I think before this committee before, 'If you've got it, a truck brought it.' And we truly believe that and when you make our industry more efficient, and more cost-effective, it's good for everything in the economy." REPRESENTATIVE COWDERY asked for a guesstimate of the number of trailers, some of the largest trucking concerns, a business might have. Number 1698 MR. DILLON replied the larger trucking companies, the traditional trucking companies, it would not be unusual for them to have 500 to 900 trailers. REPRESENTATIVE ELTON indicated the challenge is, is that the state increases the fees and assumes that the fees will be used for the additional weigh station safety employees. The challenge for the industry is to make sure that that does happen. For example, the DMV will increase the fees and take it for other spending. MR. DILLON said, "We were hopeful that the intent language, which is incorporated in here, will help with the governor's budget and encourage that that money be redirected. The trucking industry is not receiving what we consider our fair share of money to keep the weigh stations open, or to do enough safety inspections in the state." Number 1731 MR. DILLON pointed out the weigh stations are very important internally because it levels the playing field between competitors. It makes sure, from a public interest standpoint, that trucks are not overloaded and destroying the roads and causing more damage to the roads than is warranted. Mr. Dillon said, "We also believe on the safety-side of things, that the prevention of accidents is paramount, but also again leveling the playing field with those companies that are committed to running safe trucks and qualified drivers are not at a competitive disadvantage because they make that investment. So, it's not always that we are wearing some sort of white hat when we say we want the trucks weighed and we want the safety inspections. There's also a true business interest in that. But to spill over into the public arena where your major concern is, is in protecting that highway from damage that's unnecessary, and in making sure that the trucks are running on the highway are operated by qualified drivers in safe conditions. We will be following up with this." REPRESENTATIVE HUDSON referred to trucks escaping the registration fee, he assumed that is, in a large part, because the state is not manning the stations at times trucks are coming through. He asked, "Does the temporary registration fee on page 7, the $350, is that an annual certificate or is it every time they come through, or what." MR. DILLON replied an amendment will be offered to consider it to be a 30-day fee, which is what they recommended. That allows a person who enters at Tok to register in the state temporarily for 30 days. He can go pretty much where he wants and do what he wants. Should he stay longer than 30 days, he would be required to renew that temporary registration. MR. DILLON mentioned a number of trucks come to the Anchorage area to work and haul dirt during the summertime from the Lower 48, or from logging areas in Montana. They can come into the state and still register full-time at whatever the registration cost is and spend the full summertime and not pay $350 every 30 days if that is what they choose to do. That is typical of registration in every state, you have the option of buying a trip permit. MR. DILLON continued, "And, I might mention that these temporary permits -- our research over the last four years - and we've asked hundreds of different carriers who are moving freight into the state. -- It's not uncommon for us to get four or five calls a week where a carrier from Minnesota or a carrier from Florida will call up and say, 'Well, we're coming up with a load of such and such to go to a place called Prudhoe Bay, when we get to the state of Alaska what's going to be necessary to operate there. Will we need to have a fuel bond, will we need to post an insurance bond, will we need to file a mileage rate.' And now I tell them, 'If the scale is open, please buy a $10 permit,' and they think we're joking. So we've asked them, 'What would your feeling be if it was a $300 or $400 permit to come up to the state of Alaska. They'd go, 'Oh, you know we figured that into the rate of going and doing business in Alaska.' So we don't anticipate that there will be many people that are going to be adversely impacted by this, and it's certainly not our line of the reciprocity that we find, for example when one of our trucks wants to haul into the Yukon - a trip into the Yukon to deliver freight may cost the individual freight hauler as much as $600 to deliver that load. And then it's not good for like 30 days at a time, so there's still an imbalance. What this will do though, is make it a more balanced system where these out-of-state truckers are at least contributing something more to the state of Alaska where they're actually achieving some benefit for running on our roads." Number 1916 REPRESENTATIVE COWDERY asked if one of the three amendments has been withdrawn. CHAIRMAN WILLIAMS replied yes, by Representative Davis. REPRESENTATIVE COWDERY asked Mr. Dillon if the Alaska Trucking Association supports the other two amendments. MR. DILLON replied, "We definitely support the 30-day amendment, and we support the $10 fee for a one-time (indisc.) registration to put a sticker on the current equipment that shows that they were paid up and legal." Number 1941 REPRESENTATIVE SANDERS asked, "On the temporary permit, ... rather than 30 days, would you entertain - or could you guys live up to it - it might be more trouble than its worth, a trip permit, that you said you were coming four days over, four days back, that would leave you about a three-day grace period at the end and with provisions for an extension." MR. DILLON said, "I'm afraid something like that, although a very good idea, would be unworkable in terms of the enforcement of it. It's difficult enough if we can catch them at the border one time. The guy going out short of impounding his truck and threatening, I guess his family back home. We would find it very difficult to collect that money. It's again, given the size of this state, the type of commodities that move in and out of the state, we believe that increasing what is the current system of buying a multi day permit that allows you simply to do what you need to do is reasonable. We believe, and there are a number of folks who would like to see, I'm sure that a shorter time frame - but we will, in fact, have more of them registered full-time if we get the time frame too short and the price too high. We believe in thinking this thing through and then talking to operators about how they would feel about it. But the $350 for a trip permit and 30 days seems to be the most reasonable balance." MARK TABBUTT, General Manager, Totem Ocean Trailer Express [TOTE], was next to testify He said, "We're an Alaskan transportation company, our only market is Alaska. We operate three roll-on, roll-off vessels between the Port of Tacoma and the Port of Anchorage and we carry roughly 50 percent of all the freight that comes into the Port of Anchorage. And the Port of Anchorage carries about 75% to 80% of all the freight consumed through Southcentral and most of the bush communities." MR. TABBUTT indicated TOTE attracts the state's largest trucking companies as their biggest customers, their operation is an integral part of their trucking operation. TOTE owns or leases about 1500 highway trailers, depending on the season and the demands, has an investment of about $40 million, in highway trailer equipment specifically to serve the state of Alaska. He noted they operate the fleet throughout the Lower 48, for example, picking up northbound freight in California destined for Carr Gotstein grocery store in Fairbanks. Southbound, they will pull Copper River salmon out of Cordova and ship that to Tacoma, and then maybe delivered to Chicago to a fish buyer there. MR. TABBUTT concluded, "This bill will accomplish three steps that we promote. First, it will bring our state's regulations more in line with other states which is critically important to companies like ours that move this equipment routinely across state lines. Two, it will work toward creating a level playing field, that we believe we need to have in this state within the trucking industry by requiring consistent licensing fees, safety regulation compliance and equal enforcement of - discussed earlier - load regulations. Finally, it will make a revenue neutral change in licensing requirements which will ease both government and industries administrative burden in tracking the licensing." Number 2234 REPRESENTATIVE HUDSON said, "I know this has nothing to do with the bill, but I'd really be interested in what the total value of in hauled goods and the approximate value of the out hauled goods from Alaska would be. ... Particularly about the time we get the permanent fund dividend, or shortly thereafter. If you have those kind of figures, somewhere along the line, I would sure appreciate that kind of a bit of information." MR. TABBUTT replied, "A study was conducted by the Seattle and Tacoma Chamber of Commerce. And the effort was to obtain the dollar figure of goods that come out of Pudget Sound into Alaska, and the vice versa. It's surprising but the trade imbalance is in favor of Alaska, if you take in the crude that's consumed in the Pudget Sound Region, and the fish. The trade imbalance is that Alaska is sending more south than the Pudget Sound is sending north. But I'd be happy to get you a copy of that study." Number 2295 PETER BLANAS, Teamster Line Driver, was next to testify. He said if HB 404 is enacted, it will be beneficial to Alaska and to the trucking industry. Mr. Blanas read the following testimony: "First, as you know, HB 404 will charge a fee for out-of-state trucks entering Alaska. The number of these trucks have increased dramatically over the last few years utilizing our infrastructure and taking work from Alaskans and Alaska business. These outside operators currently pay almost no fees whatsoever which is inconsistent with most other states and provinces. "Second, the fees charged to outside operators, if I read the bill right, could then be appropriated to state DOT/PF programs which are in line with truck safety and enforcement, such as full-time operation of state scales, which is in the public's interest for several reasons. First a driver's logbook must coincide with the scale times, which are logged into the state scale computer. If the scale is closed, the driver is free to run a trip, or multiple trips, anyway he likes and literally fill in the blanks later. This lack of enforcement, I believe is one of the greatest contributing factors of fatigue related accidents. Also, oftentimes a driver will head out on a trip with no idea of what conditions lay ahead. Very often the only indication he'll have of trouble will come from the scale operator. The scale operator normally warns drivers of say adverse winter conditions but also has the ability to summon help in an emergency and to summon maintenance crews if a particular hill is iced over or if there happens to be a rock slide on the road on a rainy night. "Third, money collected from the outside operators may also be available for funding the state DOT/PF inspection program which currently leaves much to be desired. It may interest this committee to know that I have received one full scale truck inspection in the last four years, and that was only because I found the inspector and requested it." MR. BLANAS said, "In conclusion, I would like to convey that the single most important part of HB 404 to me is that the outside operators, who make liberal use of our infrastructure, and reap the benefits of hauling off our natural resources be made to shoulder some of the burden of the benefits that they enjoy. HB 404 is a good start toward that end." Number 2399 REPRESENTATIVE COWDERY asked are the Canadian load limits the same as Alaska's. MR. BLANAS replied he did not know. REPRESENTATIVE COWDERY mentioned he heard trucks come up from the Lower 48 through Canada and off-load, for example in Fairbanks into a local truck which cannot legally carry that weight. He asked Mr. Blanas if he was aware of that. MR. BLANAS replied he was not familiar with that. Number 2445 BARBARA HUFF-TUCKNESS, Director of Governmental and Legislative Affairs, Teamster's Local 959, testified in support of HB 404. She said, "Without reiterating all of the previous speaker's testimony, I think we have gone on record, hopefully everybody has received a copy of Gerry [Gerald] Hood, our secretary-treasure's letter ... [February 19, 1998] supporting the basic provisions of this bill. It does three things, at least what we have supported through this process, the adoption of the..." TAPE 98-8, SIDE B Number 0001 MS. HUFF-TUCKNESS continued, "The main reasons from the locals perspective here in looking at this particular industry - I think an industry that, from the teamsters' perspective has been long overlooked. For many many years a lot..." (Tape jammed, therefore approximately three minutes of Ms. Huff-Tuckness' testimony is missing). TAPE 98-9, SIDE A Number 0030 CHAIRMAN WILLIAMS called the meeting back to order. MS. HUFF-TUCKNESS stated for the record Teamster's Local 959 did go on record supporting HB 404. She said, "In summary, the issues here I think are very very near and dear to all of us that live, work and operate throughout the state of Alaska whether you actually work in the industry or drive the highways out there. I would like to end though, with a very very near and dear concern that we have, and it is with the 24-hour, 7-day a week, operations with the weigh stations. This does not come anywhere close to fixing it. It is an issue that we will continue working with the DOT/PF as well as the Department of Administration through this process. I would like to commend both of those departments for their efforts and time that they have put in working with ATA [Alaska Truckers Association], or the industry representatives, along with the teamsters in coming - at least to this particular point. As mentioned earlier, the weigh stations are a problem out there around the state and I do believe one of a very great public concern and taking a look at how those are actually operating on a day to day basis." CHAIRMAN WILLIAMS asked if anyone was on teleconference that would like to testify. Number 0170 LINDA LEARY, Vice President of Sales, Carlile K&W Transport, testified via teleconference. She said, "We would like to go on record as being in support of HB 404. For those of you that aren't familiar with Carlile and the services that we offer, basically intrastate and interstate transportation, throughout the state of Alaska and from the Lower 48 into Alaska, we constitute about 350 employees in the state of Alaska, we run 100 tractors and about 850 pieces of trailing equipment, so this bill is very important for us." MS. LEARY continued, "Some of the issues that we run into on a daily basis with our customers are safety and that's where we feel that the truck inspections will play a big roll in that. And also a level playing field with the inbound on transportation, we know that there are a number of carriers that transport into the state of Alaska, closer to probably 4,000 loads a year that actually enter the state that we would like to have it be a little bit fairer for everybody. And the registration of the power units is a much better plan for us. We also have equipment that we operate down around the Seattle and Portland area, and as well as Alaska. We'd like to go on record as being in support of it." Number 0299 REPRESENTATIVE COWDERY asked Ms. Leary if her company has special equipment to handle hazardous material. MS. LEARY replied "We transport hazardous material as well as hazardous waste, and most of the hazardous waste goes out of the state and the inbound hazardous material, most of what we have goes over the water with TOTE and there's a very little that probably comes over the road. ... Probably not that much chemicals because a lot of the chemicals need to be heated and protected, so a lot of the traffic you see is probably flatbed traffic and unheated trailers." CHAIR WILLIAMS indicated there were two amendments before the committee. Number 0418 REPRESENTATIVE MASEK made a motion to adopt Amendment 1, 0- LS1528\A.1, [2/20/98]: Page 4, lines 10-11: Delete all material. Renumber the following bill sections accordingly. Page 9, following line 10: Insert a new bill section to read: "*Sec. 20. AS 28.10.421 is amended by adding a new subsection to read: (i) A one-time registration fee of $10 is imposed upon initial registration for a trailer or semi-trailer for commercial purposes." Renumber the following bill sections accordingly. CHAIR WILLIAMS asked whether there was any objection, there being none, Amendment 1 was adopted. Number 0473 REPRESENTATIVE MASEK noted Amendment 2 was withdrawn. She made a motion to adopt Amendment 3, [0-LS1528\A.3, 2/23/98]: Page 7, line 4: Delete "60" Insert "30" CHAIR WILLIAMS asked whether there was any objection, there being none, Amendment 3 was adopted. Number 0519 REPRESENTATIVE HUDSON made a motion to move HB 404 as amended with individual recommendations and attached fiscal notes. There being no objection, CSHB 404 moved from the House Transportation Standing Committee. ADJOURNMENT Number 0567 CHAIR WILLIAMS adjourned the House Transportation Standing Committee at 2:08 p.m.