ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                        February 7, 2013                                                                                        
                           1:06 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eric Feige                                                                                                       
Representative Lynn Gattis                                                                                                      
Representative Craig Johnson                                                                                                    
Representative Bob Lynn                                                                                                         
Representative Jonathan Kreiss-Tomkins                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Peggy Wilson, Chair                                                                                              
Representative Doug Isaacson, Vice Chair                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 19                                                                                                               
"An  Act  relating  to   permanent  motor  vehicle  registration;                                                               
relating to  the registration fee for  noncommercial trailers and                                                               
to  the motor  vehicle tax  for  trailers; and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 15                                                                                                               
"An Act relating to commercial motor vehicle requirements."                                                                     
                                                                                                                                
     - MOVED HB 15 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 19                                                                                                                   
SHORT TITLE: PERM. MOT. VEH. REGISTRATION/TRAILERS                                                                              
SPONSOR(s): REPRESENTATIVE(s) STOLTZE, KELLER                                                                                   
                                                                                                                                
01/16/13       (H)       PREFILE RELEASED 1/7/13                                                                                
01/16/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/13       (H)       TRA, FIN                                                                                               
02/07/13       (H)       TRA AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 15                                                                                                                   
SHORT TITLE: COMMERCIAL MOTOR VEHICLE REQUIREMENTS                                                                              
SPONSOR(s): REPRESENTATIVE(s) KELLER, ISAACSON                                                                                  
                                                                                                                                
01/16/13       (H)       PREFILE RELEASED 1/7/13                                                                                
01/16/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/13       (H)       TRA                                                                                                    
02/07/13       (H)       TRA AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE BILL STOLTZE                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 19, as a joint prime sponsor                                                                
of the bill.                                                                                                                    
                                                                                                                                
DARRELL BREESE, Staff                                                                                                           
Representative Bill Stoltze                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and answered questions on behalf                                                               
of Representative Bill Stoltze, joint prime sponsor of HB 19.                                                                   
                                                                                                                                
KATHIE WASSERMAN, Executive Director                                                                                            
Alaska Municipal League (AML)                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the discussion of HB 19                                                                 
                                                                                                                                
AMY ERICKSON, Director                                                                                                          
Division of Motor Vehicles (DMV)                                                                                                
Department of Administration (DOA)                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and answered questions during the                                                              
discussion of HB 19.                                                                                                            
                                                                                                                                
REPRESENTATIVE WES KELLER                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and answered questions as prime                                                                
sponsor of HB 15.                                                                                                               
                                                                                                                                
JIM POUND, Staff                                                                                                                
Representative Wes Keller                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on behalf of the sponsor,                                                                      
Representative Wes Keller on HB 15.                                                                                             
                                                                                                                                
REX YOUNG, Chief                                                                                                                
Commercial Vehicle Enforcement, Anchorage Office                                                                                
Division   of   Measurement   Standards  &   Commercial   Vehicle                                                               
Enforcement (MSCVE)                                                                                                             
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and  answered questions during the                                                             
discussion of HB 15.                                                                                                            
                                                                                                                                
DAN SMITH, Director                                                                                                             
Anchorage Office, Division of  Measurement Standards & Commercial                                                               
Vehicle Enforcement (MSCVE)                                                                                                     
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 15.                                                                           
                                                                                                                                
AVES THOMPSON, Executive Director                                                                                               
Alaska Trucking Association, Inc. (ATA)                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 15.                                                                
                                                                                                                                
MIKE MOELLER, Director                                                                                                          
Trucking                                                                                                                        
CPD ALASKA LLC                                                                                                                  
Wasilla, Alaska                                                                                                                 
                                                                                                                                
POSITION STATEMENT:  Testified in support of HB 15.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:06:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE called  the  House Transportation  Standing                                                             
Committee meeting  to order at 1:06  p.m.  He indicated  he would                                                               
be chairing  today's hearing since  the Chair and Vice  Chair are                                                               
absent.   Representatives  Johnson, Gattis,  Kreiss-Tomkins, Lynn                                                               
and Feige were present at the call to order.                                                                                    
                                                                                                                                
          HB 19-PERM. MOT. VEH. REGISTRATION/TRAILERS                                                                       
                                                                                                                                
1:07:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE  announced that the first  order of business                                                               
would be HB 19, HOUSE BILL  NO. 19, "An Act relating to permanent                                                               
motor vehicle registration; relating  to the registration fee for                                                               
noncommercial  trailers   and  to  the  motor   vehicle  tax  for                                                               
trailers; and providing for an effective date."                                                                                 
                                                                                                                                
1:07:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BILL STOLTZE,  Alaska State  Legislature, related                                                               
that a bill similar to HB 19 was  heard last year.  Last year, he                                                               
said he  asked to have the  bill sent back to  committee for more                                                               
deliberations  to address  issues.   He said  he believes  in the                                                               
committee  process.   He stated  HB 19  would provide  owners the                                                               
convenience  of being  able to  register their  trailer once  and                                                               
receive   a  permanent   registration.     He  stated   that  his                                                               
constituents  prefer not  to deal  with government  on a  regular                                                               
basis.  Further,  HB 19 would also address an  equity issue since                                                               
commercial trailers  have a favorable  tax treatment  compared to                                                               
non-commercial  trailers.    This   bill  would  also  allow  for                                                               
permanent registration of personal-use  motor vehicles older than                                                               
eight years.                                                                                                                    
                                                                                                                                
1:10:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STOLTZE acknowledged  that the  eight-year figure                                                               
was arbitrary,  but after vehicles  reach a certain age  it seems                                                               
reasonable  the  person  should have  the  option  for  permanent                                                               
registration.   Further,  this option  became available  with the                                                               
dismantling  the Inspection  and  Maintenance (IM)  program.   He                                                               
explained that the Municipality  of Anchorage's emissions testing                                                               
affected Matanuska-Susitna  commuters, but the removal  of the IM                                                               
program   now   allows   for   the   possibility   of   permanent                                                               
registration.  He related some  fiscal issues still exist with HB                                                               
19.    He characterized the IM program  and two-year registration                                                               
as revenue generators for the  Department of Administration.  Not                                                               
all  fiscal issues  have been  resolved, such  that even  today a                                                               
revised fiscal  note was  issued to  remove some  assumptions the                                                               
department used.  He suggested  that committee members can make a                                                               
determination  on  the  fiscal   implications  as  the  committee                                                               
considers  policy issues;  however,  he cautioned  members to  be                                                               
skeptical  of assumptions  made by  departments, which  rely upon                                                               
revenues.    He  surmised  members  could  decide  whether  these                                                               
revenues  belong in  the state's  pocket, or  their constituents'                                                               
pockets, which  he characterized as  being a common  sense issue.                                                               
Under  HB  19,  the  permanent   registration  program  would  be                                                               
optional  for  individuals.    Additionally,  the  community  can                                                               
decide  whether  to  collect  revenues   so  a  local  option  is                                                               
included.  He understood "Talk  Radio" in Southcentral Alaska has                                                               
been pretty charged up about this  issue.  Even though he has not                                                               
promoted  this   publicity,  the  issue  grew   from  spontaneous                                                               
comments  by   constituents  and  as  a   representative  he  was                                                               
responsive to their needs.                                                                                                      
                                                                                                                                
1:14:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTIS disclosed she  owns two vehicles that would                                                               
fall under the category of  vehicles being older than eight years                                                               
old.   She  has also  received  numerous calls  and e-mails  from                                                               
constituents who  support the  concept in  HB 19.   She  said she                                                               
also owns commercial trailers that  she only registers once.  She                                                               
related she  also has  snowmachine trailers,  and while  she does                                                               
pay  the fees,  she  admitted  she doesn't  always  get the  tags                                                               
adhered to  the trailer on a  timely basis.  She  reiterated many                                                               
constituents have the same issue.                                                                                               
                                                                                                                                
REPRESENTATIVE STOLTZE  disclosed that  he has  also owns  an old                                                               
boat trailer and an old truck.                                                                                                  
                                                                                                                                
REPRESENTATIVE  LYNN  says his  personal  vehicles  are all  over                                                               
eight years  old and  he also  owns a  vacation trailer  over two                                                               
years old.                                                                                                                      
                                                                                                                                
REPRESENTATIVE FEIGE  remarked that people  are busy and  to have                                                               
to  register  vehicles every  two  years  is time  consuming  and                                                               
generates little  revenue.  He  asked, "Why not just  register it                                                               
once and be done with it?  It certainly is a legitimate point."                                                                 
                                                                                                                                
1:17:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LYNN  suggested   he   likely   pays  less   for                                                               
registration  since he  is a  senior citizen.   He  asked whether                                                               
vehicle registration for seniors  is available for vehicles eight                                                               
years or older under the bill.                                                                                                  
                                                                                                                                
REPRESENTATIVE  STOLTZE   deferred  to  the  Division   of  Motor                                                               
Vehicles (DMV) to answer.   He recalled that seniors are entitled                                                               
to one vehicle exemption.                                                                                                       
                                                                                                                                
1:17:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS said  he  read a  letter from  the                                                               
Alaska  Municipal League  (AML).   He recalled  she commented  on                                                               
revisions to  a bill last  year that led  to the AML  to withdraw                                                               
its opposition and be neutral on  the bill.  He asked whether the                                                               
sponsor could speak to the revised provisions.                                                                                  
                                                                                                                                
REPRESENTATIVE  STOLTZE  answered  the revised  bill  included  a                                                               
well-defined local option.   He suggested the AML  may still have                                                               
some concerns, although he was unsure.                                                                                          
                                                                                                                                
1:18:46 PM                                                                                                                    
                                                                                                                                
DARRELL BREESE, Staff, Representative  Bill Stoltze, Alaska State                                                               
Legislature,  on behalf  of  the bill  sponsor,  referred to  one                                                               
concern that  AML had  last year,  which was  that municipalities                                                               
would not  be able  to collect  motor vehicle  registration taxes                                                               
(MVRT) at  the time  of registration.   However, changes  to last                                                               
year's  bill, which  is  also  reflected in  HB  19, would  allow                                                               
municipalities to  set a MVRT  for vehicles  registered permanent                                                               
registration.   He briefly  described the  process municipalities                                                               
would  use,  including  that  local   government  would  pass  an                                                               
ordinance to  allow it  to collect  MVRT for  vehicles registered                                                               
permanently or for non-commercial trailers.                                                                                     
                                                                                                                                
1:20:09 PM                                                                                                                    
                                                                                                                                
MR. BREESE stated  Section 2 of HB 19 would  allow vehicle owners                                                               
an  option  to  obtain  a   permanent  vehicle  registration  for                                                               
vehicles  that  are  eight  years  or older  or  to  continue  to                                                               
register  their vehicle  biennially.   Owners would  pay the  DMV                                                               
fees based on the vehicle age  and other factors, plus a one-time                                                               
$25 fee for  permanent registration.  He suggested  the DMV would                                                               
likely   add  a   box  on   registration   forms  for   permanent                                                               
registration,  as well  as supply  a tab,  sticker, or  plate for                                                               
permanent registration.                                                                                                         
                                                                                                                                
MR. BREESE reported  that currently seniors are  allowed a single                                                               
motor  vehicle registration  exemption.   He  turned to  proposed                                                               
Section 3 of  the bill and explained that a  senior citizen would                                                               
need to decide whether to pay  the $25 for permanent exemption or                                                               
apply for the senior exemption from  the DMV.  He reiterated that                                                               
this section does  not set out a specific  exemption for seniors;                                                               
however, if  he was a senior,  he would likely choose  the senior                                                               
citizen  exemption  but  to  do so  would  mean  registering  the                                                               
vehicle biennially.                                                                                                             
                                                                                                                                
1:23:14 PM                                                                                                                    
                                                                                                                                
MR. BREESE  pointed out that  Section 4 refers  to non-commercial                                                               
trailers,  such  as  recreational trailers,  boats,  snowmachines                                                               
horse  trailers.   This  proposed section  would  allow the  non-                                                               
commercial trailer owner  to pay the $30 fee, plus  a $25 fee for                                                               
permanent registration  which is an  option.  He pointed  out the                                                               
two-year registration is still allowed.                                                                                         
                                                                                                                                
MR.  BREESE said  while the  language  is not  necessary for  the                                                               
bill, Section  5 was  left in  the statutes  allow municipalities                                                               
the  option  to  implement  any  IM program  if  the  program  is                                                               
reinstated.                                                                                                                     
                                                                                                                                
1:24:59 PM                                                                                                                    
                                                                                                                                
MR. BREESE explained  that Section 6 would set out  the base rate                                                               
for the MVRT.   He referred to  the change on page 4,  line 9, to                                                               
an option for  any permanent vehicle registration  tax imposed by                                                               
municipalities.   Currently municipalities have the  authority to                                                               
set a  MVRT, but not  all municipalities do  so.  He  recalled 16                                                               
communities  currently  have a  MVRT  with  varying rates  and  a                                                               
listing  of  these communities  is  in  members' packets  titled,                                                               
"MVRT  Collections  by  Community."    In fact,  the  MVRT  is  a                                                               
municipal tax  and not a state  tax, he said.   Currently the DMV                                                               
collects  the  MVRT  for  municipalities  and  retains  an  eight                                                               
percent fee to collect the tax.                                                                                                 
                                                                                                                                
1:26:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTIS understood  the  person has  an option  to                                                               
apply  for  permanent  registration.     She  asked  whether  the                                                               
permanent registration is transferable.                                                                                         
                                                                                                                                
MR.  BREESE answered  no.   He explained  that sales  are treated                                                               
like any other vehicle sale.                                                                                                    
                                                                                                                                
1:27:20 PM                                                                                                                    
                                                                                                                                
MR. BREESE referred  to Section 7, and to page  4, lines 22-23 of                                                               
HB  19.   He  explained that  only one  registration  tax may  be                                                               
collected.    Under  proposed  Sections  8-9,  the  state  cannot                                                               
collect  more  than $100  in  MVRT  for vehicles  with  permanent                                                               
registration.   Thus, if Matanuska-Susitna Borough  (MSB) set the                                                               
MVRT at  $300, the maximum amount  the DMV would collect  is $100                                                               
and the MSB would need to collect the $300 MVRT.                                                                                
                                                                                                                                
MR.   BREESE  turned   to  Section   8,  which   highlights  that                                                               
municipalities  can set  a MVRT  as they  see fit.   The  sponsor                                                               
discovered while working  with AML last year  that collecting the                                                               
MVRT could  be a burden to  some municipalities and since  he did                                                               
not  wish to  adversely  impact municipalities,  the bill  allows                                                               
local government  to establish its own  MVRT rate.  In  doing so,                                                               
local  governments  would  establish  the proposed  MVRT  tax  by                                                               
ordinance,  which would  also allow  communities to  obtain input                                                               
from residents.                                                                                                                 
                                                                                                                                
MR.  BREESE  stated,  as  mentioned   earlier,  Section  9  would                                                               
establish  that  the  DMV  would  not  collect  more  than  $100;                                                               
however, this provision  is not a cap, but  would simply transfer                                                               
the  responsibility to  collect  any MVRT  greater  than $100  to                                                               
municipalities or cities that impose the tax.                                                                                   
                                                                                                                                
1:30:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS asked for  the clarification on the                                                               
intent of Section 9.                                                                                                            
                                                                                                                                
MR. BREESE responded  that the sponsor's intent is  to keep taxes                                                               
low.   Further, some confusion  exists on  whether the MVRT  is a                                                               
state or  municipal tax  and this section  would address  this by                                                               
identifying the MVRT as a local  tax imposed by a municipality or                                                               
a city and not the state.                                                                                                       
                                                                                                                                
1:31:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS asked  how many municipalities have                                                               
taxes greater than $100, if any.                                                                                                
                                                                                                                                
MR. BREESE referred  to a list in members'  packets, titled "MVRT                                                               
Collections  by  Community."    He explained  that  once  a  non-                                                               
commercial  vehicle  reaches eight  year  in  age, the  DMV  fees                                                               
flatten  out.   He pointed  out the  only community  that charges                                                               
more than $100 is Unalaska and  Dutch Harbor, which sets the MVRT                                                               
at $116,  while the  remaining communities MVRT  rate is  $100 or                                                               
less.                                                                                                                           
                                                                                                                                
REPRESENTATIVE FEIGE clarified  this bill refers to  the MVRT and                                                               
not to a property tax.                                                                                                          
                                                                                                                                
1:33:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  referred to the  sponsor statement                                                               
which  read,  "Permanent  registration  will  result  in  a  cost                                                               
savings for Alaskans."  He  suggested this would translate to tax                                                               
relief and not necessarily to cost savings.                                                                                     
                                                                                                                                
MR. BREESE deferred to DMV to  attest to any cost savings for the                                                               
state; however, he thought most  vehicles are registered on-line.                                                               
Any cost savings for Alaskans  would accrue after two years since                                                               
the permanent  registration is a  one-time fee of $25  fee rather                                                               
than the current  biennial tax.  Thus these  vehicle owners would                                                               
no longer  have to pay fees  for the remaining time  they own the                                                               
vehicle, he said.                                                                                                               
                                                                                                                                
1:34:31 PM                                                                                                                    
                                                                                                                                
KATHIE  WASSERMAN, Executive  Director,  Alaska Municipal  League                                                               
(AML), reported the AML is currently  neutral on HB 19.  She said                                                               
the AML  is awaiting  reports from the  16 municipalities  on the                                                               
financial impacts  for each  community.   She offered  her belief                                                               
most  municipalities  currently  use   the  MVRT  fees  for  road                                                               
maintenance or junk car removal.                                                                                                
                                                                                                                                
1:35:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked  whether  the DMV  would  issue  a                                                               
special tag so owners would avoid tickets.                                                                                      
                                                                                                                                
1:36:43 PM                                                                                                                    
                                                                                                                                
AMY  ERICKSON,  Director,  Division   of  Motor  Vehicles  (DMV),                                                               
Department of  Administration (DOA),  stated that if  a permanent                                                               
registration fee  is implemented  the DMV  would issue  an orange                                                               
tag, which  would be distinguished  from other tags.   In further                                                               
response to  Representative Johnson, she  answered it would  be a                                                               
tag and  not a special plate.   In response to  another question,                                                               
she  answered that  the DMV's  revenues  total approximately  $70                                                               
million.      She  clarified   that   the   DMV's  revenues   are                                                             
approximately $70 million and  their expenses total approximately                                                               
$17 million.                                                                                                                    
                                                                                                                                
1:38:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON asked  how  many people  renew online  as                                                               
opposed to in person registration.                                                                                              
                                                                                                                                
MS.   ERICKSON  answered   that  approximately   11  percent   of                                                               
registrations are done in house and the rest are renewed online.                                                                
                                                                                                                                
REPRESENTATIVE JOHNSON  asked if certain staff  were dedicated to                                                               
online versus in house.                                                                                                         
                                                                                                                                
MS.  ERICKSON  answered that  the  DMV  does not  dedicate  staff                                                               
specifically  to conduct  online or  in house  transactions.   In                                                               
further  response to  a question  she agreed  that the  DMV staff                                                               
rotates and is not dedicated to performing one function.                                                                        
                                                                                                                                
1:39:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked whether anything would  prevent the                                                               
Municipality of  Anchorage (MOA) from setting  up a substantially                                                               
higher MVRT.                                                                                                                    
                                                                                                                                
MS. ERICKSON  answered that  nothing in  the bill  would prohibit                                                               
the MOA from setting a higher MVRT.                                                                                             
                                                                                                                                
REPRESENTATIVE JOHNSON questioned whether  the bill should have a                                                               
cap.                                                                                                                            
                                                                                                                                
REPRESENTATIVE  FEIGE indicated  public testimony  would be  kept                                                               
open on HB 19.                                                                                                                  
                                                                                                                                
[HB 19 was held over.]                                                                                                          
                                                                                                                                
          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                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Transportation Standing Committee meeting was adjourned at 2:04                                                                 
p.m.