Legislature(1993 - 1994)

03/30/1993 01:00 PM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
              HOUSE COMMUNITY AND REGIONAL AFFAIRS                             
                       STANDING COMMITTEE                                      
                         March 30, 1993                                        
                            1:00 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Harley Olberg, Chairman                                       
  Representative Jerry Sanders, Vice-Chairman                                  
  Representative Con Bunde                                                     
  Representative John Davies                                                   
  Representative Cynthia Toohey                                                
  Representative Ed Willis                                                     
  Representative Bill Williams                                                 
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Bill Williams                                                 
                                                                               
  OTHER HOUSE MEMBERS PRESENT                                                  
                                                                               
  Representative Bill Hudson                                                   
  Representative Curt Menard                                                   
                                                                               
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  HB 221:   "An Act relating to workers' compensation for                      
            volunteer ambulance attendants, police officers,                   
            and fire fighters; and providing for an effective                  
            date."                                                             
                                                                               
            PASSED FROM COMMITTEE WITH A DO PASS                               
            RECOMMENDATION                                                     
                                                                               
  SSHB 34:  "An Act relating to a registration tax and a                       
            certificate of title for a snow vehicle; relating                  
            to municipal taxation of a snow vehicle; and                       
            providing for an effective date."                                  
                                                                               
            PLACED IN SUBCOMMITTEE OF REPRESENTATIVES DAVIES                   
            AND MENARD                                                         
                                                                               
  Bills Previously Heard:                                                      
                                                                               
  HB 26:    "An Act relating to the control of outdoor                         
            advertising."                                                      
                                                                               
            PLACED IN SUBCOMMITTEE OF REPRESENTATIVES TOOHEY                   
            AND MENARD                                                         
                                                                               
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Representative Bill Hudson                                                   
  Capitol Building, Room 108                                                   
  Juneau, AK  99801-1182                                                       
  Phone: 465-3744                                                              
  POSITION STATEMENT: Prime sponsor of HB 221                                  
                                                                               
  Larry Fanning, Fire Chief                                                    
  City and Borough of Juneau                                                   
  820 Glacier Avenue                                                           
  Juneau, AK  99801                                                            
  Phone: 586-5322                                                              
  POSITION STATEMENT: Supported HB 221                                         
                                                                               
  John George, Lobbyist                                                        
  Alaska State Fire Fighters Association                                       
  Alaska State Fire Chiefs Association                                         
  Assistant Fire Chief,                                                        
  Capital City Fire and Rescue Department,                                     
  Auke Bay District                                                            
  9515 Moraine Way                                                             
  Juneau, AK  99801                                                            
  Phone: 789-0172                                                              
  POSITION STATEMENT: Supported HB 221                                         
                                                                               
  Representative Curt Menard                                                   
  Capitol Building, Room 405                                                   
  Juneau, AK  99801-1182                                                       
  Phone: 465-2679                                                              
  POSITION STATEMENT: Prime Sponsor of SSHB 34 and HB 26                       
                                                                               
  Juanita Hensley, Chief                                                       
  Driver Services                                                              
  Division of Motor Vehicles                                                   
  Department of Public Safety                                                  
  P.O. Box 20020                                                               
  Juneau, AK  99802-0020                                                       
  POSITION STATEMENT: Opposed SSHB 34                                          
                                                                               
  Gary Lewis, Cordova City Manager                                             
  P.O. Box 1210                                                                
  Cordova, AK  99574                                                           
  Phone: 424-6200                                                              
  POSITION STATEMENT: Provided information regarding                           
                      assessments                                              
                                                                               
  Jeff Ottesen, Chief of Right-of-Way and Environment                          
  Division of Engineering and Operating Standards                              
  Department of Transportation and Public Facilities                           
  3132 Channel Drive                                                           
  Juneau, AK  99801                                                            
  Phone: 465-6954                                                              
  POSITION STATEMENT: Provided technical information on HB 26                  
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 221                                                                
  SHORT TITLE:  WORKERS COMP:VOLUNTEER FIRE FIGHTERS, ETC                      
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) HUDSON,Grussendorf                           
  TITLE: "An Act relating to workers' compensation for                         
  volunteer ambulance attendants, police officers, and fire                    
  fighters; and providing for an effective date."                              
  JRN-DATE     JRN-PG               ACTION                                     
  03/12/93       619    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/12/93       619    (H)   CRA, LABOR & COMMERCE, FINANCE                   
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  03/30/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  03/30/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  HB 34                                                                 
  SHORT TITLE:  SNOWMOBILE REGISTRATION TAX                                    
  BILL VERSION: SSHB 34                                                        
  SPONSOR(S):   REPRESENTATIVE(S) MENARD BY REQUEST                            
  TITLE: "An Act relating to a registration tax and a                          
  certificate of title for a snow vehicle; relating to                         
  municipal taxation of a snow vehicle; and providing for an                   
  effective date."                                                             
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        33    (H)   PREFILE RELEASED                                 
  01/11/93        33    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        33    (H)   CRA, STATE AFFAIRS, FINANCE                      
  02/22/93       410    (H)   SPONSOR SUBSTITUTE INTRODUCED-                   
                              NEW TITLE                                        
  02/22/93       410    (H)   CRA, STATE AFFAIRS, FINANCE                      
  03/25/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  03/30/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  HB 26                                                                 
  SHORT TITLE:  PROHIBITED HIGHWAY ADVERTISING                                 
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) MENARD,Olberg,Foster                         
  TITLE: "An Act relating to the control of outdoor                            
  advertising."                                                                
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        31    (H)   PREFILE RELEASED                                 
  01/11/93        31    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        31    (H)   TRANSPORTATION, CRA, JUDICIARY,                  
                              FINANCE                                          
  02/11/93              (H)   TRA AT 05:00 PM CAPITOL 17                       
  02/11/93              (H)   MINUTE(TRA)                                      
  02/23/93              (H)   TRA AT 05:00 PM CAPITOL 17                       
  02/23/93              (H)   MINUTE(TRA)                                      
  02/24/93       444    (H)   COSPONSOR(S): OLBERG                             
  03/01/93       475    (H)   TRA RPT  3DP  1NR                                
  03/01/93       476    (H)   DP: FOSTER, HUDSON, MENARD                       
  03/01/93       476    (H)   NR: VEZEY                                        
  03/01/93       476    (H)   LETTER OF INTENT WITH TRA                        
                              REPORT                                           
  03/01/93       476    (H)   -ZERO FISCAL NOTE  (DOT) 3/1/93                  
  03/01/93       476    (H)   REFERRED TO COMMUNITY AND                        
                              REGIONAL AFFAI                                   
  03/01/93       495    (H)   COSPONSOR(S): FOSTER                             
  03/16/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  03/17/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  03/17/93              (H)   MINUTE(CRA)                                      
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-19, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIRMAN HARLEY OLBERG called the meeting to order at 1:12                   
  p.m.  He noted Representatives Toohey, Willis, Davies and                    
  Sanders were present.  Representative Bunde arrived at 1:13.                 
                                                                               
  HB 221:  WORKERS COMP:VOLUNTEER FIRE FIGHTERS, ETC.                          
                                                                               
  Number 030                                                                   
                                                                               
  REPRESENTATIVE BILL HUDSON, PRIME SPONSOR OF HB 221, read                    
  his sponsor statement into the record.  (Copies of this                      
  sponsor statement and the committee substitute may be found                  
  in the House Community and Regional Affairs Committee Room,                  
  Capitol Room 110, and after the adjournment of the second                    
  session of the 18th Alaska State Legislature, in the                         
  Legislative Reference Library.)                                              
                                                                               
  LARRY FANNING, FIRE CHIEF, CITY AND BOROUGH OF JUNEAU,                       
  testified in support of HB 221 and gave an example where HB
  221 would have clarified existing statutes.                                  
                                                                               
  REPRESENTATIVE CYNTHIA TOOHEY voiced her support for HB 221.                 
                                                                               
  Number 175                                                                   
                                                                               
  REPRESENTATIVE CON BUNDE asked, "What does the city (Juneau)                 
  think about this?"                                                           
                                                                               
  MR. FANNING said the City and Borough of Juneau passed a                     
  resolution supporting an extension in workers' compensation                  
  coverage "including training and approved department                         
  activities" for volunteers.                                                  
                                                                               
  Number 191                                                                   
                                                                               
  REPRESENTATIVE HUDSON said, "The City and Borough of Juneau                  
  has not formally entered a position on this bill (HB 221),                   
  but in my conversations with the mayor...they see the need                   
  for this legislation to clarify it."                                         
                                                                               
  REPRESENTATIVE BUNDE rephrased his concern, "I was thinking                  
  of places...who might have a fire department and find the                    
  workers' compensation contribution may have a significant                    
  impact on their budget to be able to function.  Is there any                 
  concern from small volunteer fire departments?"                              
                                                                               
  Number 212                                                                   
                                                                               
  CHAIRMAN OLBERG said, "I don't believe this calls for                        
  contribution on the part of a small volunteer fire                           
  department or any fire department, is that correct?"                         
                                                                               
  REPRESENTATIVE HUDSON said, "I believe that any volunteer                    
  ...if they are called out to go fight fires they become an                   
  employee.  What the bill (HB 221) does...  It says they are                  
  employees, and they are employees at the rate in which they                  
  normally come to the fire at and too, that it is not just                    
  when they are going to actually fight a fire but if they are                 
  partaking in anything that is valid, that they are covered                   
  as employees as well."                                                       
                                                                               
  Number 234                                                                   
                                                                               
  CHAIRMAN OLBERG said, "I think the point should be made that                 
  every volunteer fire fighter in the state of Alaska                          
  regardless of where they are when they respond to a fire, is                 
  considered an employee of the state of Alaska."                              
                                                                               
  REPRESENTATIVE BUNDE said, "I understand the intent of the                   
  bill (HB 221) and I do not disagree with that, but workers'                  
  comp (compensation) costs money, someone has to pay for                      
  that.  There is no indication with this zero fiscal note.                    
  Where does this increased workmen's comp coverage come from                  
  to pay for it?"                                                              
                                                                               
  REPRESENTATIVE HUDSON said, "I don't believe there is going                  
  to be an appreciable increase in the overall contribution to                 
  workers' compensation. ...The compensation I believe...comes                 
  from the private sector."                                                    
                                                                               
  Number 269                                                                   
                                                                               
  JOHN GEORGE, LOBBYIST, ALASKA STATE FIRE FIGHTERS                            
  ASSOCIATION, and ASSISTANT FIRE CHIEF, AUKE BAY DISTRICT                     
  CAPITAL CITY FIRE AND RESCUE DEPARTMENT, clarified,                          
  "Workers' compensation is paid for by the employer.  In the                  
  case of a volunteer fireman in Juneau, that would be the                     
  City and Borough of Juneau.  The state is not providing                      
  these benefits. It is a municipal responsibility, just as if                 
  someone was driving a city pickup truck for the Harbor                       
  Department and was injured...  The bill (HB 221) does not do                 
  anything as far as adding liability for workers' comp for                    
  the employee."                                                               
                                                                               
  MR. GEORGE continued, "The law already says that they are                    
  covered for workers' comp for all training (and) while                       
  responding to fires.  But it is not so clear when you just                   
  read it...you have to go through a long construction and go                  
  from place to place in the statute book to come up with that                 
  conclusion."  He added, "We would just like the firemen to                   
  have that same advantage.  When we get hurt, our families,                   
  we think, are entitled to receive wage replacement based on                  
  what we were making, not based necessarily on what an entry                  
  level fire fighter would make."                                              
                                                                               
  Number 318                                                                   
                                                                               
  REPRESENTATIVE BUNDE persevered, "My point again is, this                    
  increases further liability that costs more.  Who is paying                  
  for it?  The city is going to pay for an increased workers'                  
  comp coverage in this case.  In other cases, who pays for                    
  it?"                                                                         
                                                                               
  MR. GEORGE indicated there is currently another bill (HB
  150) which would provide state employee workers'                             
  compensation to volunteers of fire departments not under a                   
  municipality.  He said, "There are fire departments I think,                 
  probably, that do not have workmen's comp insurance, in                      
  violation of the law.  They are subject to criminal                          
  penalties as well as civil penalties...  The law is designed                 
  to punish employers that do not provide the statutorily                      
  required benefits..."                                                        
                                                                               
  Number 354                                                                   
                                                                               
  REPRESENTATIVE HUDSON reiterated, "We already believe this                   
  is in the statutes.  It is just that it is not clear...  In                  
  this particular case, all we are really trying to do is to                   
  make very, very clear what has already been embodied in the                  
  law and it does not cost the state anything.  It could                       
  conceivably cost someone who already has workers'                            
  compensation.  It may cost the overall pool to rise very                     
  slightly."                                                                   
                                                                               
  REPRESENTATIVE BUNDE pointed out HB 221 would indeed                         
  increase the workers' compensation rate, but since Mr.                       
  George, who represents all state fire fighters statewide                     
  supports it, he would.                                                       
                                                                               
  REPRESENTATIVE JOHN DAVIES MOVED to PASS HB 221 out of                       
  committee with individual recommendations.  There were no                    
  objections, and the MOTION CARRIED.                                          
                                                                               
  SSHB 34:  SNOWMOBILE REGISTRATION TAX                                        
                                                                               
  Number 411                                                                   
                                                                               
  REPRESENTATIVE CURT MENARD, PRIME SPONSOR OF SSHB 34, read                   
  his sponsor statement into the record.  (A copy of the                       
  sponsor statement may be found in the House Community and                    
  Regional Affairs Committee Room, Capitol Room 110, and after                 
  the adjournment of the second session of the 18th Alaska                     
  State Legislature, in the Legislative Reference Library.)                    
  He added, "I did introduce this bill at the request of the                   
  Mat-Su Motor Mushers.  I believe we also have the Anchorage                  
  Motor Mushers on board."                                                     
                                                                               
  REPRESENTATIVE MENARD continued, "There is an estimation of                  
  roughly probably 50-60,000 snow machines out there, and I                    
  believe probably the total amount registered in the                          
  municipality is maybe a thousand or thereabouts.  The reason                 
  in reality they do not register is because they come under a                 
  local property tax.  In the Mat-Su, a $5,000 machine would                   
  represent about $150 to $160 in local personal property tax.                 
  So in an effort to reach some sort of a compromise in this,                  
  to give the owners and the dealers the ability to have their                 
  machines titled, they feel it would track the ownership side                 
  of it and we would have a revenue stream that would start                    
  where we could tap into developing trails and establishing                   
  areas that would help many areas in the state expand their                   
  tourist and recreational monies."                                            
                                                                               
  Number 452                                                                   
                                                                               
  CHAIRMAN OLBERG said, "Converting the MSO (Manufacturer's                    
  Statement of Origin) to a title at the time of sale when a                   
  machine is new would certainly cause some revenue to be                      
  generated."                                                                  
                                                                               
  REPRESENTATIVE BUNDE asked about the Department of Public                    
  Safety's fiscal note.                                                        
                                                                               
  Number 482                                                                   
                                                                               
  JUANITA HENSLEY, CHIEF, DRIVER SERVICES, DIVISION OF MOTOR                   
  VEHICLES, DEPARTMENT OF PUBLIC SAFETY, said, "This fiscal                    
  note is written on what the industry has advised us.  I was                  
  surprised to hear Representative Menard say there was 50-                    
  60,000 machines...  It's only 25,000."                                       
                                                                               
  REPRESENTATIVE MENARD said, "It was someone's guess."                        
                                                                               
  MS. HENSLEY continued, "It's based on how many vehicles                      
  would be titled or registered.  I must say something else,                   
  the department is opposed to title assumption.  We presently                 
  have a format, and it is required by law that everyone who                   
  owns a snow machine register that vehicle with the Division                  
  of Motor Vehicles.  They are not doing that.  We have 7,000,                 
  I believe 7,100 registered snow machines now in this state.                  
  Titling them, we feel, is not going to accomplish anything                   
  further than what it already is.  There are a lot of places                  
  out there that do not register their vehicles, lots of                       
  villages out there..."                                                       
                                                                               
  Number 509                                                                   
                                                                               
  CHAIRMAN OLBERG said, "A titling requirement should mandate                  
  that the dealer at the time of sale would acquire a title by                 
  turning in the MSO.  Maybe we can do it through the                          
  registration process in some fashion, but what we are really                 
  trying to do here is establish a paperwork trail with the                    
  sale of each new snow machine.  Whether it be a title or                     
  registration, I do not have any hang-ups, but it needs to be                 
  mandated at the dealer level when the machine is new, if it                  
  is going to have any effect at all."                                         
                                                                               
  REPRESENTATIVE BUNDE said, "The level of possible                            
  registrants is optimistic, and as such the chances of the                    
  program being revenue neutral and paying for itself is                       
  diminished."                                                                 
                                                                               
  Number 510                                                                   
                                                                               
  CHAIRMAN OLBERG asked if present laws require snowmobile                     
  registration to be physically on the machine.                                
                                                                               
  MS. HENSLEY indicated no, but there are decals applied to                    
  snowmobiles.                                                                 
                                                                               
  REPRESENTATIVE MENARD said, "I didn't care whether it was                    
  titling or registration...  I knew DMV (Division of Motor                    
  Vehicles) did not support titling.  Currently, the group                     
  that I am working with seemed to be intent that titling is                   
  the important factor and we have not worked through it.  I                   
  think they can do the same thing with registration.  Their                   
  main concern was theft of machine...and having the ability                   
  to do it at the time of sale.  The organized groups that                     
  talked to us say they do not like operating outside the law                  
  but they are not willing to step up to the plate because of                  
  the cost of new machines and the borough personal property                   
  (tax)...                                                                     
                                                                               
  REPRESENTATIVE MENARD continued, "So we are trying to devise                 
  some sort of a mechanism to one, make them register or have                  
  an incentive to register, given the track record on the                      
  thieving and give them the opportunity to work on some kind                  
  of a revenue stream to develop trails.  I did float it out                   
  to the groups, 'would you be willing to...have an assessment                 
  over and above what the registration tax is that would be                    
  earmarked for trails development?' ...And they are floating                  
  that around.  I do not have the total exact crystal clear                    
  picture how this should work...and I would like to work                      
  within the committee and with the department to see if there                 
  is a way that we can structure it.  ...I am not opposed to                   
  structuring something that is somewhat revenue neutral.  I                   
  just don't know what the numbers are."                                       
                                                                               
  Number 589                                                                   
                                                                               
  CHAIRMAN OLBERG suggested, "If we propose mandatory                          
  registration at time of original sale...would that cause a                   
  fiscal note in DMV?"                                                         
                                                                               
  MS. HENSLEY said, "If you are increasing the fees or                         
  requiring a mandated fee.  Then, of course, the fiscal note                  
  we have would still be the same fiscal note.  However, the                   
  revenue that would be generated would certainly offset the                   
  costs."                                                                      
                                                                               
  Number 605                                                                   
                                                                               
  GARY LEWIS, CITY MANAGER, CORDOVA, testified giving an                       
  example of a municipality assessing personal property tax on                 
  a snow machine.                                                              
                                                                               
  CHAIRMAN OLBERG said, "If we structured it so that the                       
  dealer selling the new machine is mandated to register the                   
  snow machine at a fee that is revenue neutral, ten bucks                     
  call it...then the relationship becomes a relationship                       
  between the owner of the snow machine and the municipality                   
  that he or she lives in as to the personal property tax                      
  ramifications."                                                              
                                                                               
  MS. HENSLEY said, "I am not saying that titling is not a                     
  positive thing.  I am saying it is something I do not think                  
  is necessary because we do have the registration...  These                   
  are registered every two years as opposed to yearly.                         
  Presently, it is $5.00 to register a snow machine.  With                     
  this registration of these vehicles the city can come back                   
  to (the Department of) Motor Vehicles and say, 'I want a                     
  list of the people who registered snow machines in that                      
  municipality' and we will supply that to them.  In fact, we                  
  do that to several municipalities..."                                        
                                                                               
  CHAIRMAN OLBERG confirmed the present biannual snow machine                  
  registration.                                                                
                                                                               
  MS. HENSLEY reminded the committee there are only 7,000 snow                 
  machines presently registered and added, "The law does say                   
  if it is operated on public lands that it must be                            
  registered."  She further said, "I have a list of areas who                  
  are exempt from motor vehicle registration and the same                      
  would exist (for snow machines) in those areas."                             
                                                                               
  Number 660                                                                   
                                                                               
  REPRESENTATIVE ED WILLIS asked if other snow machine groups                  
  had commented on SSHB 34.                                                    
                                                                               
  REPRESENTATIVE MENARD indicated the Anchorage, Wasilla and                   
  state associations had been contacted.                                       
                                                                               
  Number 675                                                                   
                                                                               
  REPRESENTATIVE BUNDE pointed out, "I think we have two                       
  issues:  One, a registration procedure so that we can track                  
  stolen vehicles, and that ought to be a fee that just pays                   
  for itself, I would think.  Then the municipalities, if they                 
  have a property tax on this vehicle, that is a whole other                   
  question.  Do I understand correctly that the thrust of what                 
  the organizers want is to have a system where the vehicle                    
  can be traced?"                                                              
                                                                               
  CHAIRMAN OLBERG reiterated, "By mandating the registration                   
  of snow machines at the time it is sold new we would                         
  accomplish a couple of things.  First, we would hear from                    
  every dealer in the state so we would know who they are, but                 
  then the state would have an every two year registration fee                 
  and municipalities could do what they want to do and                         
  everybody else can do what they want to do.  Is that what                    
  you are suggesting?"                                                         
                                                                               
  REPRESENTATIVE JOHN DAVIES said, "Except that the last line                  
  in the bill (SSHB 34) exempts snow machines from personal                    
  property taxation."                                                          
                                                                               
  TAPE 93-19, SIDE B                                                           
  Number 000                                                                   
                                                                               
  REPRESENTATIVE BUNDE said, "Eventually over a ten year                       
  period, the majority of snow machines in the state will be                   
  registered vehicles."                                                        
                                                                               
  Number 020                                                                   
                                                                               
  CHAIRMAN OLBERG clarified, "The plan is that everybody that                  
  registers their vehicle exempts themselves from the                          
  municipal tax."                                                              
                                                                               
  REPRESENTATIVE MENARD added, "And is substituted with a                      
  registration fee.  That was the carrot that was out there.                   
  Obviously, there are a lot of machines out there that are                    
  not registered and the main reason is the personal property                  
  tax that is assessed.  ...So the group thought that if they                  
  had the registration...and were not subject to personal                      
  property tax they would go with a registration fee."                         
                                                                               
  Number 074                                                                   
                                                                               
  REPRESENTATIVE BUNDE said, "The compromise I would like to                   
  support is a registration title of all dealers that sell                     
  machines with the idea that eventually most of the machines                  
  would become registered, but I do not think we should bind                   
  the hands of the municipality by saying they cannot charge                   
  them a property tax..."                                                      
                                                                               
  REPRESENTATIVE TOOHEY asked which committee members                          
  represented areas with personal property tax.                                
                                                                               
  Number 120                                                                   
                                                                               
  REPRESENTATIVE BUNDE said, "If we had to create a tax big                    
  enough in the Mat-Su to pick this up, the registration fee                   
  would be $60-$70.  I do not think the organization is going                  
  to be real happy about that."                                                
                                                                               
  Number 147                                                                   
                                                                               
  REPRESENTATIVE DAVIES asked Representative Menard what the                   
  current discussion was with the snow machine groups                          
  regarding compromises.                                                       
                                                                               
  Number 153                                                                   
                                                                               
  REPRESENTATIVE MENARD said, "A lot of people are not                         
  registering.  They would like to have the registration.                      
  Unless they are exempt from the personal property tax and we                 
  come up with some kind of a registration tax then they lose                  
  support of the bill (SSHB 34).  If it comes down that we are                 
  going to mandate registration from this point forward on new                 
  sales and resalable machines, and there's not a fee                          
  structure in the bill on what they would be charged; and, if                 
  they fall totally under the municipal personal property tax,                 
  then they would drop their support of the bill."  He then                    
  indicated that the groups would approve of a fee in the $20-                 
  25 range.                                                                    
                                                                               
  Number 186                                                                   
                                                                               
  MR. LEWIS said, "In some municipalities, the local assessor                  
  looks at a snow machine as part of the household goods which                 
  is exempt.  In other municipalities, the assessor looks at                   
  it as personal property that is taxable.  A definition of a                  
  snow machine being part of the property of the head of a                     
  household might eliminate the whole tax question on snow                     
  machines that are used for personal use.  It would only be                   
  snow machines that are held in inventories or used for                       
  commercial purposes that would be taxable."  He continued,                   
  "In the first part of (AS) 29.45 it says the personal                        
  effects of the head of a household are exempt from property                  
  taxation.  If you define snow machines as being part of the                  
  personal effects of the head of the household they could be                  
  exempt."                                                                     
                                                                               
  Number 214                                                                   
                                                                               
  REPRESENTATIVE MENARD pointed out the similarities in                        
  registering snow machines and motorcycles.                                   
                                                                               
  REPRESENTATIVE BUNDE said, "Am I to assume we do it                          
  something like motor vehicles, cars, that the state would                    
  then rebate the municipality something that would then hold                  
  them harmless from their original tax?  Like motor vehicles,                 
  we pay our state registration, but we do not pay a personal                  
  property tax on motor vehicles."                                             
                                                                               
  MS. HENSLEY said, "Presently you pay your $35 or $40 for                     
  your normal registration fee.  In addition, you pay, if you                  
  live in the Anchorage, Mat-Su or Kenai area, well, nine                      
  areas of the state, you pay a motor vehicle registration tax                 
  that the Division of Motor Vehicles collects for the                         
  municipality and rebates less than 5% which is kept for                      
  administrative costs."                                                       
                                                                               
  Number 247                                                                   
                                                                               
  REPRESENTATIVE DAVIES said, "I would be a lot more                           
  comfortable about putting this exemption in here if the                      
  permissive language allowed the municipalities to put a                      
  dedicated fee on top of that..."                                             
                                                                               
  REPRESENTATIVE TOOHEY said, "I've a problem with this,                       
  primarily (because) for twenty years I commuted by snow                      
  machine to my car because there was no maintenance on the                    
  road I live on...  Snow machiners are very reticent to do                    
  anything to help communities because nobody helps the snow                   
  machiners.  There is no plan out there that says, 'yes, this                 
  is an activity that we think is good and it is healthy and                   
  here is a trail you can use, here is a mountain you can                      
  use...'  There are no trails in the Anchorage area.  There                   
  is one mountain down in the pass."                                           
                                                                               
  REPRESENTATIVE BUNDE said, "I am sorry, I cannot support                     
  this part where they will leave out the municipal property                   
  tax, certainly without talking to Anchorage...I think it is                  
  going to be a hardship on the municipalities."                               
                                                                               
  Number 302                                                                   
                                                                               
  REPRESENTATIVE DAVIES said, "There are trails in the                         
  Fairbanks area...where snow machines are welcome.  That is                   
  what I am concerned about this other possibility:  The                       
  municipality could raise some dedicated funds to help                        
  maintain those kinds of trails.  That would encourage that                   
  kind of designated use."                                                     
                                                                               
  REPRESENTATIVE MENARD gave a description of trails available                 
  for snow machines.  He added, "We need to come up with some                  
  kind of a mechanism to generate those through and then we                    
  move forward."                                                               
                                                                               
  REPRESENTATIVE TOOHEY pointed out, "What happens to the                      
  person who is trapping and he buys his neighbor's snow                       
  machine for $1,200 or $300 and it is used for                                
  transportation."                                                             
                                                                               
  REPRESENTATIVE BUNDE said, "If there is a snow machine                       
  registration tax and it differs from Anchorage to Wasilla to                 
  Fairbanks, where they don't have any, people are going to be                 
  buying their snow machines where the tax is the smallest..."                 
                                                                               
  CHAIRMAN OLBERG said, "The tax is assessed by the                            
  municipality in which you live, not where you buy...so                       
  everybody is going to end up living in Delta, I suppose."                    
  He then suggested a subcommittee be formed to work further                   
  on SSHB 34.                                                                  
                                                                               
  REPRESENTATIVE DAVIES volunteered to work on the                             
  subcommittee with Representative Menard.                                     
                                                                               
  CHAIRMAN OLBERG said, "Realistically, I do not think we can                  
  address everything that this addresses in one bill.  Maybe                   
  we need a state registration bill mandating dealers to                       
  register at the point of initial sale and let it go at that.                 
  Then that list is available to the municipalities and they                   
  can do whatever they want with it, and they can fight it out                 
  in the municipalities."                                                      
                                                                               
  Number 380                                                                   
                                                                               
  HB 26:  PROHIBITED HIGHWAY ADVERTISING                                       
                                                                               
  CHAIRMAN OLBERG referred to two amendments to HB 26; one                     
  dated 3/12/93, and the other dated 3/30/93.                                  
                                                                               
  Number 390                                                                   
                                                                               
  REPRESENTATIVE CURT MENARD, PRIME SPONSOR OF HB 26, referred                 
  to the latter amendment dated 3/30/93 and said, "If you had                  
  a business on the highway, you would have the ability to put                 
  up a sign 25 miles on one side of it and 25 miles on the                     
  other side of it.  If someone was coming along                               
  hypothetically, we could have a sign up 25 miles before you                  
  got there.  Then within the intersection or close to the                     
  facility within let's say a mile, for example, they could                    
  have another sign.  And then if it is on the highway, they                   
  are going to have an on highway premise sign.  If it is off                  
  the highway, they would have the ability to still have that                  
  sign in there.  So you would have five or four signs                         
  depending on where you are."                                                 
                                                                               
  Number 435                                                                   
                                                                               
  REPRESENTATIVE TOOHEY said, "I think we are doing exactly                    
  what we do not want to do.  Why 25 miles?"                                   
                                                                               
  REPRESENTATIVE MENARD said, "We were trying not to be too                    
  restrictive, and in that area, the possibility of a                          
  commercial area that would be in the (25 mile) area."                        
                                                                               
  Number 445                                                                   
                                                                               
  JEFF OTTESEN, CHIEF OF RIGHT-OF-WAY AND ENVIRONMENT,                         
  DIVISION OF ENGINEERING AND OPERATING STANDARDS, DEPARTMENT                  
  OF TRANSPORTATION AND PUBLIC FACILITIES, testified, "25                      
  miles is my recommendation and I understand your concern.                    
  The issue here is that the entire highway is not eligible                    
  for signing.  Only areas that are either zoned commercial                    
  industrial or are a commercial industrial land use.  So if                   
  you are a gas station and a half mile down the road there is                 
  another gas station, where you might put advertising, is he                  
  going to allow you to put up a sign advertising your gas                     
  station?  Probably not.  Those kinds of concerns and the                     
  preponderance of public ownership made me suggest a larger                   
  range."                                                                      
                                                                               
  REPRESENTATIVE TOOHEY asked, "Are you saying 25 miles from                   
  the gas station we are hoping that there is a commercial?"                   
                                                                               
  MR. OTTESEN replied, "That was the intent, that if you had                   
  24 miles of public ownership in front of your business, then                 
  there really is no opportunity to place the sign.                            
  Hopefully, somewhere in the 25 miles there is:  A) private                   
  ownership; B) commercial industrial use; and, C) willing to                  
  let you put a sign up."                                                      
                                                                               
  CHAIRMAN OLBERG pointed out, "This is mandated by the                        
  federal government."                                                         
                                                                               
  MR. OTTESEN concurred, "Commercial industrial is an                          
  underlying requirement we just have to live with."                           
                                                                               
  Number 472                                                                   
                                                                               
  REPRESENTATIVE TOOHEY asked, "Where does this leave TODS                     
  (Tourist Oriented Directional Signing)?"                                     
                                                                               
  MR. OTTESEN said, "TODS is primarily geared to businesses                    
  not on the main highway.  This would make some of the TODS                   
  requirements less necessary."                                                
                                                                               
  CHAIRMAN OLBERG speculated, "This does not impact TODS."                     
                                                                               
  MR. OTTESEN concurred, "It (TODS) would be allowed on top of                 
  anything we would do here."                                                  
                                                                               
  Number 486                                                                   
                                                                               
  REPRESENTATIVE DAVIES asked, "Why five?  Why couldn't we                     
  have reduced this to three...?"                                              
                                                                               
  CHAIRMAN OLBERG gave examples in Tok and Dot Lake and said,                  
  "Some people are going to have to use TODS to have signs,                    
  but I don't find five excessive..."                                          
                                                                               
  REPRESENTATIVE MENARD pointed out TODS cost around $1,500                    
  each.                                                                        
                                                                               
  Number 520                                                                   
                                                                               
  MR. OTTESEN said, "The five was actually a worst case                        
  scenario.  I think the one sign on the business (premises)                   
  you should not count in your formula.  That sign is already                  
  allowed by both federal and state law.  Whatever number you                  
  set, it should only be those signs that are not on the                       
  premises.  You might want to pick four.  We were thinking                    
  about situations where you are near an intersection so you                   
  might have three or four roads that ultimately lead to your                  
  location in the immediate proximity.  And the idea was to                    
  have one sign per route of travel or approach.  Not to have                  
  two or three signs on a given approach."                                     
                                                                               
  REPRESENTATIVE DAVIES said, "That got to one of my                           
  concerns...to just specify five is a little bit too simple.                  
  If we could get at the idea that was just expressed, that we                 
  had one sign per direction of approach per road, that                        
  notion.  I would be a lot more comfortable with it."  He                     
  added, "There are places like Dot Lake as you point out,                     
  where even with this you probably will not even be able to                   
  put up one sign.  The logo approach, it seems to me, might                   
  actually do the businesses a better job in a lot of                          
  instances than what we are doing here..."                                    
                                                                               
  MR. OTTESEN said, "When we first looked at the logo program,                 
  another one of these programs allowed by federal law, it did                 
  not make sense for Alaska.  It was geared to interstate                      
  situations that had four categories:  Food, gas, lodging,                    
  and campgrounds.  No other activities could be signed.  It                   
  was intended to be big, expensive signs:  $5,000 to $10,000                  
  per business.  I understand now...other states have come up                  
  with what I call the mini logo sign, a little bit bigger                     
  than TODS, but a lot smaller than those monsters you see on                  
  the interstate...would fit our circumstances pretty well.                    
  It gives you the benefit of being able to put up a colorful                  
  logo that describes your business, particularly if your                      
  business has a recognizable logo.  It would fill a gap that                  
  TODS does not always fill and it would certainly fill the                    
  gap in areas of almost all public ownership."                                
                                                                               
  Number 559                                                                   
                                                                               
  REPRESENTATIVE DAVIES asked, "Is there enough flexibility                    
  that we could make that kind of thing work for Alaska?"                      
                                                                               
  MR. OTTESEN said, "I don't know if the Oregon approach (mini                 
  logo signs) is able to get beyond the limitation of four                     
  types of businesses.  Right now our TODS program is geared                   
  towards anything that a traveler might use.  I have to do                    
  some investigation to find out if they were able to spread                   
  that beyond the food, gas, lodging, and camping.  But                        
  definitely in terms of it being small enough to be                           
  affordable, but large enough to be read, it was working and                  
  people seemed to use it.  And it was being used on two-lane                  
  highways in a rural setting."                                                
                                                                               
  Number 590                                                                   
                                                                               
  REPRESENTATIVE TOOHEY proposed community services also be                    
  viewed on the mini logo signs.                                               
                                                                               
  MR. OTTESEN said, "The time that we did the first TODS study                 
  we came up with a concept called the Community Service                       
  Sign...it was intended to say, 'There's a community off the                  
  highway here and they have a whole variety of services'."                    
  He added these were currently used in the Yukon Territory.                   
                                                                               
  Number 603                                                                   
                                                                               
  CHAIRMAN OLBERG suggested Representative Toohey serve on a                   
  subcommittee to work on HB 26.                                               
                                                                               
  REPRESENTATIVE TOOHEY consented.                                             
                                                                               
  Number 610                                                                   
                                                                               
  REPRESENTATIVE DAVIES suggested, "Would it work to say, 'no                  
  more than two signs per business location per route'?"                       
                                                                               
  MR. OTTESEN said, "I've been thinking about the language...                  
  One sign per direction or approach."                                         
                                                                               
  Number 620                                                                   
                                                                               
  REPRESENTATIVE DAVIES said further, "There ought to be a                     
  disclaimer in here that says this does not limit in any                      
  sense the use of TODS."                                                      
                                                                               
  CHAIRMAN OLBERG suggested, "Back to the drawing board,                       
  Representative Menard?"                                                      
                                                                               
  REPRESENTATIVE MENARD concurred.                                             
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN OLBERG adjourned the meeting at 1:48.                               

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