Legislature(1997 - 1998)
04/30/1997 01:36 PM House JUD
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 231 - REGULATION OF SNOWMOBILES Number 0689 CHAIRMAN GREEN announced the next item of business was House Bill No. 231, "An Act relating to regulation of snowmobiles." REPRESENTATIVE BEVERLY MASEK, sponsor of HB 231, explained that the bill resulted from work by the Alaska State Snowmobile Association and the Division of Parks and Outdoor Recreation. She views it as an important tool in promoting a genuinely Alaskan activity and creating opportunities for winter recreation. REPRESENTATIVE MASEK advised members that there has been a statutory requirement for registering snowmobiles since 1968. However, few Alaskans register their snowmobiles, which she believes is primarily due to the registration process. The owner of a new snowmobile must take the title to the Division of Motor Vehicles (DMV) and wait in line to get the $5 registration. She believes that there is no mail-in system for renewal, as there is for vehicles, and that snowmobile owners must renew annually. This bill would make registration easier. REPRESENTATIVE MASEK said by allowing dealers to handle registration at the time of purchase, HB 231 will create a better process for compliance with current statutes. It will also allow dealers and other agents to handle renewals. Furthermore, having a good system in place will provide an accounting of the number of machines in Alaska. This information is important for acquiring monies available from the national "Recreational Trails Program" (created by the National Recreational Trails Fund Act) for construction, trail heads, signs and grooming equipment. Establishment and maintenance of a good trail system throughout Alaska will provide Alaskans a place to ride and, more importantly, provide an opportunity to expand recreation and winter tourism. REPRESENTATIVE MASEK concluded by saying HB 231 will require input and work from the public and the legislature, and she hopes to work on it during the interim with the snowmobile groups, the Division of Parks and Outdoor Recreation, and convention and visitor bureaus. She noted that committee files contain a statement of support from the Anchorage Convention and Visitors Bureau, and other such bureaus support it statewide. She advised members that Eddie Grasser could answer technical questions. Number 0959 CHAIRMAN GREEN asked how the Recreational Trails Program worked, whether it supplied money based on the number of snow machines registered in Alaska or whether Alaska, being one of 40 states with snowmobiles, would get one-fortieth of the funds, for example. REPRESENTATIVE MASEK replied that only 15 to 20 percent of owners register currently. With an accurate account of who in Alaska registered their snow machines, and how many, they would be eligible for this national Recreational Trails Program through the Division of Parks and Outdoor Recreation. Number 1020 REPRESENTATIVE JAMES asked what the current registration process is. For example, how does one know whether a snow machine is registered? Is there a license attached to it? REPRESENTATIVE MASEK stated her belief that an owner goes into the DMV to fill out a registration form and is given the title and a sticker with the registration number to put on the snow machine. REPRESENTATIVE JAMES asked whether it required proof of ownership. REPRESENTATIVE MASEK said yes. Number 1120 JUANITA HENSLEY, Chief, Driver Services, Division of Motor Vehicles (DMV), Department of Public Safety, testified that the DMV has registered 12,000-14,000 snow machines statewide. The process, somewhat as Representative Masek had stated, is that after purchase of a machine, the owner comes to the DMV and fills out the application. She clarified that the owner does not get a title; the DMV does not title snow machines in the state. The owner receives a registration, just as people do for their cars, and a registration tab that must be put on the cowling of the snow machine. It is a two-year registration for $5. The DMV does not issue metal license tags for this. Number 1286 REPRESENTATIVE BUNDE noted that during previous discussion of snowmobile registration in the legislature, people promoted it because of theft, as it would provide a way to trace stolen machines. He said he assumed that was still a reason for registration, in addition to obtaining federal trails money based on the number of snow machines in Alaska. REPRESENTATIVE BUNDE next referred to page 2, line 3, which says, "A snowmobile dealer shall" register it. He suggested that would take care of a lot of enforcement problems, and he believed it was important. However, he wanted to make sure it did not conflict with page 1, line 9, which says, "An agent may accept" a registration. CHAIRMAN GREEN suggested there were agents other than dealers, for which this bill provides. MS. HENSLEY agreed and explained that the bill is trying to allow new vehicle sales to be registered at the point of sale. But for anyone else who has a snow vehicle, they can have contract agents to do the registration. REPRESENTATIVE BUNDE said he agreed with registering snowmobiles to reduce theft and get financial support for facilities. Referring to page 2, lines 12 through 15, he asked why, then, they would exempt machines used on private property, in snow machine races or in communities where motor vehicles are not required to be registered, because theft would still occur and it was important to have as many machines registered as possible to obtain the federal funds. Therefore, they may not want to exempt (2), (3) and (4). CHAIRMAN GREEN asked why those were excluded. Number 1355 EDDIE GRASSER, Legislative Assistant to Representative Beverly Masek, suggested that Jim Stratton from the Division of Parks and Outdoor Recreation, who had spent a lot of time writing this, could answer that, or possibly someone from the Alaska State Snowmobile Association could. Mr. Grasser said he himself grew up on a farm, where they had unregistered vehicles used only on the farm, on private property. He assumed that somebody using a snow machine strictly on private property, for whatever reason, would fall in the same category. JIM STRATTON, Director, Division of Parks and Outdoor Recreation, Department of Natural Resources, came forward to testify. He referred to item (2) on page 2, line 12, "used strictly on private property for private, noncommercial purposes", and said that related to use of snowmobiles for farming, for example, or as work equipment. MR. STRATTON referred to item (3), "used only in sanctioned snowmobile races", and said those types of specially-built snow machines are typically used only for racing. The division had felt it was not appropriate to require their registration because they were not for use on public lands or on the trail system. MR. STRATTON referred to item (4), "used exclusively in communities exempt from motor vehicle registration under AS 28.10.011", and said when he got involved with the Alaska State Snowmobile Association in developing this legislation, the main emphasis was to create more funding for recreational trails. Recreational trail riding is primarily in the railbelt area, which has the largest population. Therefore, registering snowmobiles in the bush did not fit in. MR. STRATTON said that instead of including all snowmobiles in Alaska at the very beginning, they had wanted to ensure the bill's passage; if the residents of the bush wanted to participate, they then could ask to be included and to have their snowmobiles registered. He added, "And at that time, then, they could ... partake of some of the registration money, which we eventually see as getting to the level of being able to provide grants out to snowmobile clubs and communities around the state." MR. STRATTON said besides the theft question, the big push is the number of riders in the state, not only for more federal money, "but we will begin to generate some money of our own." If the legislature sees fit to reinvest that into snowmobile trails, those recreational trails will primarily benefit cities where automobiles are registered. "And so, we felt that was just a clean way to do it and to make it parallel that way," he concluded. Number 1550 REPRESENTATIVE PORTER asked whether this section generally replicates what exists already, in terms of which snow machines must be registered. MR. STRATTON said no, this is a change. REPRESENTATIVE PORTER said he did not know whether it was expanded or contracted, but he did not agree with (2), (3) or (4). He explained, "If number (2) is to get at this huge agricultural -- well, we don't have one; so, I don't know what that's about. ... Number (3), I would agree with that if the sanctioned snowmobile races were on a quarter-mile track like dragsters or something. But these things go all over the state on public lands .... That's where these races are. So, to the extent that they could contribute a little bit to that, I don't see that's a big problem." REPRESENTATIVE PORTER referred to item (4), "used exclusively in communities exempt from motor vehicle registration". He said that was because of lack of roads, which was what vehicle registration is about. However, snowmobiles use public lands, just like everybody else. "So, I really don't think that (2), (3) or (4) are appropriate," he concluded. REPRESENTATIVE CROFT asked how a snowmobile is used for farming. Number 1643 MR. GRASSER said he himself had used snow machines for farming, which included herding animals. For example, they had kept 60 horses on approximately 1,500 acres in the Matanuska Valley. As a young boy, he had used a snow machine to transfer the herd from one part of the farm to another in the wintertime. REPRESENTATIVE JAMES said she agreed with Representative Porter's concerns on this issue, indicating that if they were going to register snow machines, they ought to just do it. She also had a little problem philosophically with doing it just to get some federal funds. Furthermore, she believed the theft issue made registration important. She asked whether it cost $5. MS. HENSLEY said it is $5 for a two-year period. REPRESENTATIVE JAMES suggested that was hardly worth the paper on which it is written. She asked how much work the department does to keep track of these registrations and whether $5 for two years is enough for the paperwork, regardless of whether federal funds are available. MS. HENSLEY emphasized that only 12,000 to 14,000 are registered now. With this legislation, including point-of-sale registration, all vehicles being registered, keeping track of all those vehicles and ensuring that they are in the computer system, the Division of Information Services (DIS) charge-backs, based on the space used in the system by the DMV, would increase. She had no doubt that it would increase the costs to the DMV. MS. HENSLEY agreed that the fee possibly should be looked at, whether for operation of the program or for monies for trail maintenance, to obtain matching funds or even for additional funds through the federal programs for trails. MS. HENSLEY advised members that under current law, snow machines are required to be registered before competing in any type of race or "game program." She believes the increase in registrations over the last few years is basically because of the theft situation and because for race clubs, for example, registration is required by law before snowmobiles are allowed to operate in those races. Number 1855 REPRESENTATIVE MASEK, responding to Representative James, said the intent is to get funding to help the snowmobilers with the trails. But it also will establish trails for recreational snowmobilers. In Anchorage, for example, there is no place to use snow machines. People must drive 100 miles or more to do so. She believes this is a good way to establish a recreation trail that will be safe and for multiple uses. Where she herself snow machines on the Yentna River, there are snowmobiles, dog mushers and skiers. They need to look at safety factors, including putting up signs, for example. Number 1950 REPRESENTATIVE JAMES said she understood those kinds of things and had been a snow machine user herself. Her concern over the registration was whether the money was enough. Not only would there be the original registration, but whenever a machine was sold or junked, there would be additional work. She was not convinced this would pay for itself or provide any money. REPRESENTATIVE JAMES also asked how this would be enforced, noting there was no penalty for failing to register. In addition, machines may need to be counted by category to obtain federal funds. She believes they need to think seriously about how this will work. Number 2036 REPRESENTATIVE ROKEBERG asked Ms. Hensley whether the DMV provides copies of the registrations to local municipalities for purposes of personal property tax. He also asked how many jurisdictions have a personal property tax on snowmobiles. MS. HENSLEY said she could not answer either question. The DMV does currently registers the vehicles, and a municipality could request from the DMV a listing of all snow machines registered within that municipal boundary. Referring to Representative Masek's comments about working on this over the interim, she noted that it is under Title 5, relating to amusements and sports. The DMV proposes putting this all under Title 28, which contains all the other registration of motor vehicles, because the snow machine is a motor vehicle. The DMV also proposes working out some of the other issues with the legislation. VICE CHAIRMAN BUNDE took over chairing the meeting in the absence of Chairman Green. He announced that follow-up should be brief, as there were many people wishing to testify. Number 2181 REPRESENTATIVE ROKEBERG inquired about taking up Representative Masek's proposed amendments while there was still a quorum. VICE CHAIRMAN BUNDE said he would prefer to take testimony first. He advised members that the hearing must conclude by 3:30 p.m. because of another committee meeting. He asked testifiers to limit comments to two minutes in order to accommodate all speakers. KEVIN DAVIS, General Manager, Arctic Recreational Distributors, testified via teleconference from Anchorage, specifying that his Anchorage-based company is a wholesaler from which all of the Arctic Cat dealers in Alaska buy their machines. They support point-of-sale registration and believe it will help with recovery of stolen machines, among other things. Referring to the trail system proposed by the Anchorage Economic Development Corporation, he suggested that using examples from other states, including Minnesota, Wisconsin, Michigan, Washington and California, the proposed system could be paid for in just a few years through the registration of snowmobiles. When snowmobilers renew their registrations, that continues to help with the funds. In many cases, states have ended up with extra funds, beyond those used to maintain and construct trails. He emphasized that this is not something new because there are examples that can be copied. TAPE 97-73, SIDE A Number 0006 VICE CHAIRMAN BUNDE asked Mr. Davis to send the committee an idea of what other states charge for registration, if he had that information. BOB KOWALKE, Yamaha Motor Corporation USA, testified via teleconference from Anchorage, saying he has been in the business for 29 years, including snow machines, motorcycles and all-terrain vehicles. He likened the snow machine business in Alaska to a creek that has grown into a river over the years. He believes that it is up to everyone involved to harvest the power behind that river constructively. The monetary impact on the state from snow machines is beginning to be recognized; it could increase if they use these monies to develop trails and increase policing of stolen machines, for example. He concluded by saying the first step in moving ahead is this point-of-purchase registration. TOM HEATKE, District Sales Manager, Polaris Industries, testified via teleconference from Anchorage, saying he represents roughly 55 dealers in the state and over 400 employees. He really stands behind the point-of-sale registration in concept. He had moved up here from Minnesota. With the seven or eight months of winter in Alaska, he saw no reason why there could not be a decent trail system to encourage tourists. He concluded by saying he concurred with the previous two speakers. JANA LITTLEWOOD, Alaska State Snowmobile Association, testified via teleconference from Anchorage, saying they strongly support the concept of a point-of-sale registration. She said accurate numbers of snowmobilers must be available to gain access to funding sources such as the gas tax reimbursement and the national Recreational Trails Program fund. MS. LITTLEWOOD said this legislation is the first step toward a snowmobile program in Alaska that will promote safe, alcohol-free riding and responsibly create a statewide trail system that works. She reported that they had worked closely with the state Division of Parks and Outdoor Recreation to create this bill, and they do support it. While some recreational users have differences with that division, they have seen the division make what she believes are correct decisions. They want to allow that division the opportunity to follow through with their commitment to snowmobile trails. MS. LITTLEWOOD said they had written a transferable registration into this bill to help deal with theft issues. Their first priority, however, is getting an accurate count of snowmobiles in Alaska in order to move forward, which this point-of-sale registration will achieve. Once there is a trail system and program to show users, then they could look at raising some fees. TIM BORGSTROM, Special Projects Director, Anchorage Economic Development Corporation, testified via teleconference next, saying he had been working on "winter infrastructure development projects" for over 12 months. They recognize Anchorage as a "winter city" with a summer season, and his job is developing ways to diversify the economy. MR. BORGSTROM had studied all the "winter states" in North America, approximately 27 including Canadian provinces, discovering the phenomenon that snowmobile trail construction for resident users leads to additional infrastructure, which evolves into a tourism industry. In North America, snowmobiling is a $7-billion-per-year industry. In Alaska, the 1995-1996 winter season brought more than $54 million in retail sales for snowmobiles and accessories. MR. BORGSTROM believes with point-of-sale registration, they can tap into monies that historically have not returned to snowmobilers, to develop a trail network that would bring national and international tourists to Alaska in the winter. In West Yellowstone, Montana, the "granddaddy of winter snowmobiling," they accommodate up to 6,000 or 7,000 rental vehicles weekly, people going there just to snowmobile. Becoming a popular industry, it is something he believes Alaskans can effectively manage and organize in concert with the Division of Parks and Outdoor Recreation. He feels that there is a tremendous opportunity to replace the "closed for the season" signs in downtown businesses with "open for winter business" signs. RANDY CROSBY, Trails Coordinator, Alaska State Snowmobile Association, testified via teleconference from Anchorage. He said HB 231, in addressing registration, is an important part of providing for the needs of snowmobilers, both residents and visitors. He expressed hope that through development and refining of this bill, Alaska will be able to collect monies from snowmobile owners to eventually provide trails, frontage, education and other needs that will eventually help all Alaskans. One has only to look at other states in the snowbelt to see how a well-developed snowmobile infrastructure benefits citizens economically and socially; snowmobile registration is one key element of that infrastructure. He hopes that as this bill progresses, the legislature and Governor Knowles will work with the DMV and the "snowmobile community" to provide that these registration fees are directed to trails, safety and education. SUSAN OLSEN testified via teleconference from Anchorage, speaking as a supporter of the Alaska Quiet Rights Coalition, which seeks a fair and equitable allocation between motorized and nonmotorized uses on state lands. She had originally come to support the bill, prior to seeing the amendments. She emphasized that registration is a fine first step. MS. OLSEN pointed out that there currently are conflicts between snowmobilers and those who seek quiet wilderness experiences, such as skiers. As trail development goes forward, it needs to be coordinated something like the Mat-Su trails plan that is already in preparation. She emphasized that the differences in the two types of users must be acknowledged, with the rights of both recognized. She concluded by saying that multiple-use trails do not work, as the uses are incompatible. The original bill gives recognition to that for the first time, and she hopes that as it goes forward, it keeps these other, larger issues in mind in addition to registration. Number 0805 VICE CHAIRMAN BUNDE turned the gavel back to Chairman Green. CHARLES JOHNSON testified via teleconference from Fairbanks, saying he is a member of the Fairbanks Snow Travelers (ph), the Alaska State Snowmobile Association and the nordic ski club in Fairbanks. He believes that multiple uses are compatible. Noting that the amendments would have the DMV administer this, he asked whether that had happened yet or was still just a proposal. CHAIRMAN GREEN said they had not yet taken up any amendments. MR. JOHNSON stated that he favored snowmobile registration "and everything that has been said." He would prefer that it remain with the DMV, which is already set up to do registrations, already doing them, and mandated to do so. MR. JOHNSON said on talk shows and in letters to the editors, they hear about problems with snowmobilers trespassing and roaring up and down through rural subdivisions at midnight. He believes having a sticker on the machine would cause people to think twice about doing that; it would aid in identifying snowmobiles involved in crimes such as trespassing and disturbing the peace. He believes all snowmobiles should be registered. Number 0939 REPRESENTATIVE BUNDE asked two questions of all testifiers, requesting that they send in a response: Should all snow machines be registered, or should the exemptions discussed earlier continue? And did they support or oppose putting identification numbers on tracks, which he understands they do in the Lower 48 in order to apprehend scofflaws? STERLING MUTH, President, Fairbanks Snow Travelers (ph), testified via teleconference, saying he was a former safety officer of the Alaska State Snowmobile Association as well. His organization supports HB 231 with the proposed amendments. They believe the DMV needs to do the registration, and they cannot support it if any other organization is involved in that. He noted that some members had mailed in their registrations to the DMV; therefore, that is already possible but could use some standardization. MR. MUTH believes the point-of-sale registration is needed to receive Alaska's fair share of the gas tax dollars, which is based on the number of machines registered. Another positive outcome of the bill would be a reduction of theft. He believes that multiple- use trails work with coordination, education and understanding. For example, his organization grooms hundreds of miles of trails that are connected with dog mushers' trails, and they all use the trails together. Mentioning enforcement, he reported that people are writing tickets in parks near Anchorage for those who do not display their registration decals. He concluded by restating the desire for the DMV to do the registration. WILLIAM EASTHAM, President, Mat-Su Motor Mushers, testified via teleconference, stating simply that they support the bill with the sponsor's proposed amendments. Number 1145 REPRESENTATIVE PORTER said he must attend another meeting. CHAIRMAN GREEN noted that they would lose their quorum; he also had to attend that meeting. He announced HB 231 would be held over. REPRESENTATIVE PORTER suggested taking a close look at the level of the registration fee either by the next hearing or over the interim, commenting that "you can't lose money per unit and make it up by volume." He believes the DMV would go increasingly in the hole with this expanded activity at $5 for two years. Number 1233 MR. GRASSER advised members that he had just spoken with Mr. Stratton and Ms. Hensley; as he believed he had mentioned to Representative Masek, all of them would like to pursue Ms. Hensley's suggestion of rewriting this into Title 28 so that it comes in line with other DMV regulatory authority derived from statute. They had also just discussed calling dealers and snow machine groups to check into the fee structure. (HB 231 was held over.)
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