Legislature(1997 - 1998)
02/19/1998 01:45 PM House FIN
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* first hearing in first committee of referral
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HOUSE BILL NO. 231
"An Act relating to regulation of snowmobiles."
EDDIE GRASSER, STAFF, REPRESENTATIVE BEVERLY MASEK, noted
that HB 231 was the result of work done by the Alaska State
Snowmobile Association (ASSA) and the Division of Parks and
Outdoor Recreation, Department of Natural Resources (DNR).
He believed that the legislation would be an important tool
in promoting this activity in Alaska, as well as creating
greater opportunities for winter recreation in many areas
of the State.
Mr. Grasser commented that there has been a statutory
requirement for registering snowmobiles since 1968,
however, few Alaskans have participated. By allowing
dealers to handle registrations at the time of purchase, HB
231 will establish an easier process for users to comply.
The legislation also allows dealers and other agents to
undertake registration renewal.
Mr. Grasser continued, it is important to snowmobile
enthusiasts to have a good system in place to provide an
accurate accounting of the number of snow machines in
Alaska. This information is an integral part of the
formula used to acquire trail moneys available from the
National Trails Fund.
He summarized HB 231 would be a good initial step in
developing a system providing for snowmobile registration.
The State will benefit with help from the federal
government.
Representative J. Davies asked if there is a fee charged
for registration at this time. Mr. Grasser said there is a
$5 dollar fee to register a snow machine, which is
collected at the point of sale. The goal would be to
establish a point of sale registration in order to
determine how many snowmobiles are owned in the State.
Representative Kohring echoed Representative Martin's
concern in adding an additional public tax. He inquired if
the dealers would be doing the work of the Division of
Motor Vehicles (DMV). Mr. Grasser replied that dealers
have voluntarily been providing this work over the years.
In this mandatory registration program, point of sale would
require that all dealers in the State become responsible to
provide the service. With a new program available through
the Department of Administration (DOA) and Internet, it
will be easier to register.
Representative Kohring asked how this legislation would
impact a private transaction. Mr. Grasser replied that the
new owner must continue to register with DMV.
Representative Kelly expressed concern with the language
used in reporting of accidents. Mr. Grasser explained that
with this bill, snow machines would be treated the same as
boats have been. All transactions are required by the bank
and will be reported to the Universal Commercial Code
(UCC). When buying from an individual, the buyer could
check with the UCC to guarantee there is no lien.
Representative Kelly asked how a new owner of a used
machine accesses information regarding the previous
owner(s). Mr. Grasser explained that would be the
responsibility of the purchaser, and that any individual
can call UCC and find out if there is a bank lien on the
machine. Mr. Grasser pointed out that currently, there is
an area on the registration card for lien holder
information. DMV has advised that information will be
printed off with the Title of Ownership.
Representative Martin thought that legislation should
achieve a higher public purpose. Mr. Grasser commented
that the funds would indicate a certain number of snow
machines in the State and could then be used to determine
State's qualification for federal monies to help maintain
trails. In order to qualify for those funds, there will
need to be a complete record of the number of snowmobiles
in the State.
Representative Martin stated that the legislation would
present compliance difficulties for rural Alaskan
communities. Mr. Grasser pointed out that the snow mobile
association supports passage of the proposed legislation.
He reiterated in order to qualify for the federal grant
requires snowmobiles be registered.
Co-Chair Therriault asked the source of federal funding for
trails. Mr. Grasser explained that currently there is a
non-highway tax for recreational trail users which has
created a pool of funds available to various states through
the Department of Transportation and Public Facilities
(DOT&PF).
JIM STRATTON, DIRECTOR, DIVISION OF PARKS & OUTDOOR
RECREATION, DEPARTMENT OF NATURAL RESOURCES, noted that the
Department manages the grant program. The funds come to
the State Parks office and then those monies are allocated
in grants up to $15 thousand dollars to trail clubs.
Representative Martin asked the percentage of rural
Alaskans that receive that funding. Mr. Stratton did not
know the breakdown, however, agreed that most is
distributed to urban users. He added that the Department
of Transportation and Public Facilities has granted funding
to the rural communities to help stake snowmobile trails on
the Seward Peninsula.
Representative J. Davies suggested that there should be a
governmental mechanism to collect the fees. He added, the
responsible snow mobile owners are currently paying to
provide for the trails that everyone uses. The bill
requires that everyone pay their fair share.
Representative Foster pointed out that the legislation
could only work at the point of sale. He noted that it
would not address problems in rural Alaska as the DMV
offices are few and far between. Representative Foster
advised that there needs to be some system of notification
to remind snow machine owners that their registration is
due to renew. Mr. Grasser believed that by moving that
Division to the Department of Administration will help
address this problem by creating a mail out reminder.
Mr. Grasser noted that in the original version of the bill,
there was an exception for rural Alaska, although, that
clause had been removed in the House Judiciary Committee
version.
HB 231 was HELD in Committee for further consideration.
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