Legislature(1997 - 1998)
03/19/1998 01:35 PM Senate TRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CSHB 231(FIN) - REGULATION OF SNOWMOBILES
CHAIRMAN WARD brought CSHB 231(FIN) before the committee as the
final order of business and stated the committee would take
testimony from witnesses waiting to testify over the legislative
teleconference network.
MAX LOWE, President of the Alaska Snowmobile Representatives
Alliance (ASRA), testifying from Anchorage in support CSHB
231(FIN), said the alliance feels it is the proper funding
mechanism for construction and improvement of trails, trail signage
maintenance, etc., in the state of Alaska. He said there are great
safety implications for snowmobiling in the bill, and it has the
support of the majority of recreational users and clubs.
Number 268
SENATOR HALFORD questioned what the envisioned fee would be for
registering a snowmobile at the time of purchase. MR. LOWE replied
that there is currently a $5 per year fee which has to be renewed
every two years. He noted that in eleven western states, the fees
range anywhere from $15 to $26 per year.
SENATOR HALFORD asked the status of municipal taxation on these
vehicles. MR. LOWE responded that there is none at this time.
Although it was on the property tax roles of the municipality at
one time, it was exempted along with boats, aircrafts, etc.
SENATOR HALFORD said his only concern is that we not create a very
attractive vehicle for municipalities to jump on to and people end
up paying $50 or $75 on a new machine per year. MR. LOWE agreed
that it is a possibility, but he expressed the need to move this
legislation ahead and get some trails funding because that could be
a possibility at any time.
Number 295
CHAIRMAN WARD announced the arrival of Representative Masek who is
the prime sponsor of HB 231.
KEVIN HITE, representing the Alaska State Snowmobile Association
and testifying from Anchorage, stated their support for CSHB
231.(FIN). For years snowmobile clubs have sought this type of
state mechanism for registration and accounting. They support the
legislation in several areas, primarily the accounting of the
number of registrations in Alaska for acquiring trail funding, as
well as the advantages and benefits to owners of this being a theft
deterrent.
MICHAEL EASTHAM, representing the Snomad Snowmachine Club and
testifying from Homer, voiced their total support for the
legislation. They believe it will a big advantage to snowmobile
owners because it will provide an easier way to register their
snowmachines. He noted a state parks survey has shown that
approximately six to eight thousand new snowmobiles are sold
annually in Alaska, which, he said, represents a large dollar value
of revenues being lost to the state. It is his understanding that
some snowmobile dealers are opposed to this legislation because of
the added responsibility of registering newly purchased
snowmobiles, but he believes these dealers should have to share the
burden for the convenience of the new owners. He has also heard
that some Native groups and persons living in remote areas are
opposed to this, and although it has been law since 1968 that
snowmobiles be licensed by owners, he assumes that 10 percent or
less of those people living in those areas even register their
snowmobiles, which is a great loss of revenue to the state.
Number 360
BILL EASTHAM, testifying from the Mat-Su LIO in support of CSHB
231(FIN), said they need another vehicle for snowmachine users to
be able to register their snowmachines besides standing in line at
the Division of Motor Vehicles.
SENATOR HALFORD wondered if any of the people testifying would
object if the legislation had a provision in it that said it
wouldn't be used as the basis of establishing a municipal
snowmobile property tax.
EDDIE GRASSER, staff to Representative Masek, said it is not the
intent of this legislation to assist the boroughs or
municipalities in assessing a property tax. REPRESENTATIVE MASEK
added that perhaps Senator Halford's concern could be addressed in
a separate piece of legislation.
Number 428
JAMES DAY, representing Arctic Cat and testifying from Anchorage,
stated support for the legislation because it will provide an
accurate account of snowmachine sales in the state, which is very
important to the manufacturers. It will also aid police forces in
all communities in their efforts to find and return stolen
snowmachines.
Number 446
JAY DULANY, Director, Division of Motor Vehicles, Department of
Administration, testifying from Anchorage, said he would address
some of the questions raised during the meeting.
Relating to a discussion on the fee, Mr. Dulany said the fee set
under AS 28.10.421(d)(7) is not affected by this bill, and it is
currently set at $10 for the biannual period.
He said there is a provision in statute that allows the Division of
Motor Vehicles to collect taxes on certain vehicles, but this class
of vehicles is not listed in that table, so for the division to
collect the tax there would have to be a change in the table made
by the Legislature.
Mr. Dulany pointed out that snowmobile registrations can be renewed
over the Internet or by telephone, so people don't have to go to
the DMV offices.
Mr. Dulany also pointed out that it is a common practice for
dealerships to charge a fee for processing paperwork.
JIM STRATTON, Director, Division of Parks and Outdoor Recreation,
testifying from Anchorage, said he was present to respond to
questions about the trail use and trail moneys that would come from
adding increased registrations.
SENATOR HALFORD pointed out that none of this money is dedicated so
it could be used for non-motorized trail development. MR. STRATTON
said they would hope that when the money is authorized for trail
use that it would come with intent on how it is to be spent. He
added that the money the division currently gets from the federal
government for trails is dedicated specifically for trails and
there is formula that allocates that money between motorized and
non-motorized that they do follow. He also clarified that fuel tax
money goes into the general fund and there is no reallocation of
fuel tax money to the trail program.
Number 506
SENATOR WILKEN inquired if the state is losing money from the
National Trails funds because of the lack of registration of
snowmachines. MR. STRATTON acknowledged that the state is losing
money because the snowmobile numbers aren't as high as they should
be. There are about 12,000 snowmobiles registered in the state of
Alaska, but it is estimated that up to 80,000 exist. He said he is
not sure how much more money the state would get if all of them
were registered, but that question has been posed to the people who
administer that grant money. The division currently gets about
$165,000 in federal highway money, and he estimated it would be
about a 15 percent increase.
TIM BORGSTROM, representing the Anchorage Economic Development
Corporation and testifying from Anchorage, said the corporation has
been looking for ways to promote winter tourism and they have
concluded that snowmobile recreation is an increasing and very
lucrative industry in roughly 28 states. Every one of those states
has a point of sale registration law in place which helps as a
funding mechanism for the development of trails to attract tourists
to the state.
Mr. Borgstrom said he has talked to the president of the
International Snowmobile Manufacturers Associations and was told
that it is not just federal highway money that the state is losing
out on. The state has lost out on millions of dollars because of
not having a point of sale program.
In his closing comments, Mr. Borgstrom related that there have been
over 80 snowmobiles stolen within the Anchorage bowl this winter.
With a point of sale registration, snowmobile owners would have to
register their machines every year, get a new sticker that would be
easily identifiable at a distance. He said the legislation
provides mechanisms for money, mechanisms for law enforcement, and
a protection and safety net for snowmobile owners.
There being no further witnesses to testify on HB 231, CHAIRMAN
WARD asked Representative Masek if she had any additional comments.
Number 554
REPRESENTATIVE MASEK said she wanted to make it clear that this is
not a new fee that is being initiated. There has been a statutory
requirement on the books since 1968 for registering snowmobiles;
however, very few Alaskans have participated in this process and
HB 231 makes it easier for people who want to purchase snowmachines
in the future to comply with the requirement. She pointed out that
the legislation has a lot of support and she urged the committee's
support as well.
SENATOR HALFORD asked Representative Masek if she would object to
an option that would make it easier for people to re-register their
machines by providing a longer period of time in between
registering the machine at the time of purchase and the renewal
requirement. He suggested instead of it being $10 for two years,
it could be $20 for four years. He said he thinks a lot of the
objection to registration is just the contact with the bureaucracy.
REPRESENTATIVE MASEK responded that the legislation provides for a
mail in system for registration renewal the same as is done with
motor vehicles.
TAPE 98-5, SIDE B
Number 587
MR. DULANY added that he didn't see a problem with handling it
either way.
SENATOR WILKEN said most of the comments he has had on this
legislation were good with the exception of one dealer who thought
he didn't want the burden of the additional paperwork. He asked if
there was some thought of increasing the $5 yearly fee.
REPRESENTATIVE MASEK responded that at this time the $5 fee is
adequate.
SENATOR WILKEN asked how the dealer will get the required signature
to complete the paperwork if a Fort Yukon resident orders a
snowmachine from a Fairbanks dealer. MR. DULANY replied that it
could be handled in the same way that occurs now with automobile
dealers. When the individual is ordering the snowmachine, he can
request that the application for the registration be faxed or
mailed to him. Once the application is completed and returned the
dealership would either register the machine or submit the
paperwork to the local DMV office for registration. He added that
before the machine can be shipped the chain of title would have to
be complete.
There being no further testimony on HB 231, CHAIRMAN WARD asked for
the pleasure of the committee.
SENATOR WILKEN moved CSHB 231(FIN) and the accompanying fiscal note
be passed out of committee with individual recommendations.
Hearing no objection, it was so ordered.
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