04/16/2019 01:00 PM House TRANSPORTATION

               HB 23-SNOWMOBILE REGISTRATION FEES                                                                           
                                                                                                                                
1:16:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL announced that the  next order of business would be                                                               
SPONSOR SUBSTITUTE  FOR HOUSE  BILL NO. 23,  "An Act  relating to                                                               
registration fees for snowmobiles and off-highway vehicles."                                                                    
                                                                                                                                
1:16:59 PM                                                                                                                    
                                                                                                                                
WILLIAM GAMBLE,  Staff, Representative Mark Neuman,  Alaska State                                                               
Legislature,  presented  SSHB  23  on  behalf  of  Representative                                                               
Neuman,  prime sponsor.   [The  first  presentation having  taken                                                               
place on  3/26/19], Mr. Gamble  offered to answer  questions from                                                               
the committee.                                                                                                                  
                                                                                                                                
1:17:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  STUTES  asked  for greater  specificity  regarding  the                                                               
current use of funds.                                                                                                           
                                                                                                                                
1:17:51 PM                                                                                                                    
                                                                                                                                
MR. GAMBLE offered his understanding  that Governor Mike Dunleavy                                                               
has taken the  money out of the Fiscal Year  2020 (FY 20) budget;                                                               
however, he  said he cannot  answer as  to the intentions  of the                                                               
governor for funds  that "come in through" the  Division of Motor                                                               
Vehicles (DMV).                                                                                                                 
                                                                                                                                
1:18:07 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  WOOL recollected  that  the bill  sponsor  had said  he                                                               
wanted  the  fees to  go  to  trail  maintenance -  snow  machine                                                               
trails, in particular.                                                                                                          
                                                                                                                                
MR. GAMBLE  confirmed that is correct.   He said the  name of the                                                               
program is Snow Track.                                                                                                          
                                                                                                                                
1:18:39 PM                                                                                                                    
                                                                                                                                
RICKY GEASE,  Director, Division of Parks  and Outdoor Recreation                                                               
(DPOR), Department  of Natural Resources  (DNR), stated  that the                                                               
division  oversees the  Snowmobile  Trails Grant  Program.   Last                                                               
year the  division had approximately $400,000  total in requested                                                               
funding, of  which $180,000 in receipts  came from DMV.   He said                                                               
minus the administration  fees, the division put  out $158,000 in                                                               
grants  for trail  grooming, which  is  about 38  percent of  the                                                               
overall requests.  With more  money coming in, along with receipt                                                               
authority, the division could give out more money.                                                                              
                                                                                                                                
1:19:47 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL  observed that SSHB  23 would double the  amount of                                                               
money coming  in; however,  the actual  amount would  not double,                                                               
since there would be a  provision wherein people could spend less                                                               
by paying  for more years  up front.   He asked  whether $350,000                                                               
would be "a fair target."                                                                                                       
                                                                                                                                
MR. GEASE  answered that according  the fiscal analysis,  that is                                                               
correct.                                                                                                                        
                                                                                                                                
1:20:17 PM                                                                                                                    
                                                                                                                                
CO-CHAIR STUTES  asked whether  the requests  to which  Mr. Gease                                                               
referred were specifically for trail maintenance.                                                                               
                                                                                                                                
1:20:39 PM                                                                                                                    
                                                                                                                                
MR.  GEASE responded  that the  majority  of it  went toward  the                                                               
grooming of  trails.  He noted  that some money was  requested to                                                               
cover the  cost of putting up  safety signage.  In  response to a                                                               
follow-up question,  he said  the intent  behind the  increase of                                                               
fees  under SSHB  23 would  be to  cover the  trail grooming  and                                                               
signage.   He said the  Snow Track Advisory Council  reviews [the                                                               
applications], and  the money is  distributed to the groups.   He                                                               
spoke of larger equipment used  for maintenance, and he mentioned                                                               
volunteer  organizations.   He clarified  that  the equipment  is                                                               
owned by the nonprofit organizations.                                                                                           
                                                                                                                                
1:22:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL  asked whether he  is correct in thinking  that the                                                               
money  allocated for  trails "is  not going  to be  entirely used                                                               
inside the state parks."                                                                                                        
                                                                                                                                
MR. GEASE answered that what Co-Chair  Wool was referring to is a                                                               
different  program called  the Recreational  Trails Program.   In                                                               
response  to  a  follow-up  question  from  Co-Chair  Stutes,  he                                                               
clarified that  funding for the  Snowmobile Trails  Grant Program                                                               
comes from  snowmobile users  paying a  registration fee  to DMV,                                                               
and  then,   through  the  receipt   authority,  that   money  is                                                               
transferred to DNR  to allocate to the grantees of  the program -                                                               
the groomers across the state.                                                                                                  
                                                                                                                                
1:24:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL  asked whether any of  the funds go to  other uses,                                                               
such as maintenance of summer trails.                                                                                           
                                                                                                                                
MR.  GEASE answered  that  all  the funds  are  used to  maintain                                                               
winter trails;  however, sometimes "fat tire"  bicycle riders use                                                               
the snow machine trails.                                                                                                        
                                                                                                                                
1:25:00 PM                                                                                                                    
                                                                                                                                
MR.  GAMBLE noted  that  almost  12 percent  of  the receipts  go                                                               
towards  administering the  program.   He  said it  is all  self-                                                               
funded.   He stated,  "It's no  cost to DNR,  except for  the ...                                                               
[snowmobile]  registration  fees;  they   pay  for  all  the  ...                                                               
administration of the program itself."                                                                                          
                                                                                                                                
1:25:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY shared her  appreciation for the legislative                                                               
research  information  that shows  what  the  cost of  snowmobile                                                               
registration is  in other states,  as well as "the  community use                                                               
of the registrations across the state."                                                                                         
                                                                                                                                
1:25:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND referred  to the  fiscal note  [from the                                                               
Department of Administration, included  in the committee packet],                                                               
and noted that  the revenue is listed as  an undesignated general                                                               
fund (UGF).   She offered her understanding  that funds specified                                                               
for  expenditure  in   a  specific  way  are   categorized  as  a                                                               
designated general fund (DGF).                                                                                                  
                                                                                                                                
1:26:33 PM                                                                                                                    
                                                                                                                                
MARLA  THOMPSON,  Director,  Division of  Motor  Vehicles  (DMV),                                                               
Department  of Administration  (DOA),  said the  fiscal note  was                                                               
"double-checked," so it  is UGF.  Notwithstanding  that, she said                                                               
she  would  check with  an  administrator  and  get back  to  the                                                               
committee on the issue.                                                                                                         
                                                                                                                                
1:27:39 PM                                                                                                                    
                                                                                                                                
DAN SADDLER, Legislative  Liaison/Communications Director, Office                                                               
of  the  Commissioner,  Department of  Natural  Resources  (DNR),                                                               
explained  that  the money  is  raised  by registration  fees  on                                                               
snowmobiles, which are  collected by the DMV.   The money, funded                                                               
by capital  grants, is UGF;  it is  "available to any  program to                                                               
spend"  and  is allocated  through  the  capital budget  to  DNR,                                                               
through capital grants.  In  response to Representative Drummond,                                                               
he said  he does not  think the proposed legislation  directs the                                                               
funds to be spent on the  Snow Track [Grant Program]; however, he                                                               
stated, "I think the expectation is that's what would happen."                                                                  
                                                                                                                                
1:29:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR STUTES  moved to  report SSHB 23  out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being no  objection, SSHB 23 was reported out  of the House                                                               
Transportation Standing Committee.