Legislature(2017 - 2018)BUTROVICH 205
02/23/2017 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SB50 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 50 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
February 23, 2017
1:30 p.m.
MEMBERS PRESENT
Senator Bert Stedman, Chair
Senator Click Bishop
Senator David Wilson
Senator Dennis Egan
MEMBERS ABSENT
Senator Anna MacKinnon
COMMITTEE CALENDAR
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 50
"An Act relating to fees for the sale or installation of studded
tires; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 50
SHORT TITLE: INCREASE STUDDED TIRE FEE
SPONSOR(s): SENATOR(s) GIESSEL
02/06/17 (S) READ THE FIRST TIME - REFERRALS
02/06/17 (S) TRA, FIN
02/15/17 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
02/15/17 (S) TRA, FIN
02/23/17 (S) TRA AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
KARI NORE, Staff
Senator Cathy Giessel
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis of SB 50.
LANCE MEARIG, Chief Engineer
Department of Transportation and Public Facilities (DOTPF)
POSITION STATEMENT: Presented information related to SB 50.
JAMES HARPSTER, representing himself
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to SB 50.
ANNETTE HARPSTER, representing herself
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to SB 50.
JUDY SNYDER, Owner
Diversified Tire, Inc.
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 50.
DAVE SNYDER, Owner
Diversified Tire, Inc.
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 50.
STEVEN WORTHAM, Business Owner
Alyeska Tire
Kenai, Alaska
POSITION STATEMENT: Testified in opposition to SB 50.
FRANKLIN WORTHAM, Business Owner
Alyeska Tire
Kenai, Alaska
POSITION STATEMENT: Testified in opposition to SB 50.
RICHARD NORDNESS, Executive Director
NW Tire Dealers Association
Seattle, Washington
POSITION STATEMENT: Testified in opposition to SB 50.
GARY WESSEL, Manager
Bruno Wessel, Inc.,
Elmsford, New York
POSITION STATEMENT: Testified in opposition to SB 50.
DAVID NEES, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 50.
ED MARTIN, Partner
Key Construction
Cooper Landing, Alaska
POSITION STATEMENT: Testified in opposition to SB 50.
ACTION NARRATIVE
1:30:22 PM
CHAIR BERT STEDMAN called the Senate Transportation Standing
Committee meeting to order at 1:30 p.m. Present at the call to
order were Senators Bishop, Wilson, Egan, and Chair Stedman.
SB 50-INCREASE STUDDED TIRE FEE
1:30:46 PM
CHAIR STEDMAN announced the consideration of SB 50.
1:31:24 PM
SENATOR CATHY GIESSEL, Alaska State Legislature, sponsor,
presented SB 50, thanked the committee for hearing the bill. She
said SB 50 would institute an increase in the fees for the use
of studded tires. Alaska's road system is critical for our
Alaskan families, businesses and jobs. Children travel on
highways every day to and from school; workers commute; and
businesses transport their merchandise and countless products.
Everyone depends on roads regardless of the weather or the
season. The effectiveness and safety of the road system affects
every Alaskan.
She defined the problem SB 50 addresses - road ruts, which pose
significant dangers to Alaskans. The major contribution to these
ruts are studded tires used during the winter. The ruts are
worse in high-speed, high-traffic areas where some of the most
serious accidents occur. She named the Glenn and Seward Highways
as having significant ruts. She described the danger of having
ruts in the road, especially when changing lanes. In the summer
the ruts fill with water.
She understood that it costs about $1 million per mile to repair
the rutting on a two-lane stretch of highway.
1:33:53 PM
SENATOR GIESSEL related that in 2002 Alaska did a study and then
imposed a studded tire fee in 2004. At a rate of $5 per tire, in
FY2016 it generated about $400,000, not near the cost of
repairing roads.
She addressed what other states do. The four states around the
Great Lakes - Michigan, Wisconsin, Minnesota, and Illinois -
have banned studded tires, as has Ontario, Canada. She said
Japan has also banned studded tires due to the air pollution
caused by the tires.
She stressed that SB 50 is not about banning studded tires.
There is a solution that will work for Alaska; to increase the
user fee. She provided examples of other user fees, such as the
State Parks Division's park fees, and hunting and fishing
license fees.
1:36:38 PM
SENATOR GIESSEL spoke of new technology studless tires. She
referred to studies in members' packets from states that have
found that these tires perform as well, or better than studded
tires. The study from Washington State includes 16 conclusions
drawn from tests done in Alaska.
1:37:50 PM
She brought up the cost of studded tires versus the new
technology tires. She maintained that the cost, overall, is the
same. The increased fee in the bill will be allocated to the
Department of Transportation and Public Facilities (DOTPF) for
road maintenance and repair.
She defended the bill as a conservative bill. She emphasized
that the bill is not a ban on studded tires, but a user fee.
1:39:38 PM
KARI NORE, Staff, Senator Cathy Giessel, Alaska State
Legislature, presented the sectional analysis of SB 50:
Section 1: Amends AS 43.97.025(b)
This section amends the current statute in 3 ways. It
first increases the studded tire user fee from $5 to
$50, it reduces the weight of studs that fall under
this fee from 1.1 grams to 0.5 grams. It also ensures
that all tires sold through online retailers for use
in Alaska are subject to this fee.
Section 2: Adds a new subsection under AS 43.98.025
This section creates a new subsection (i) to establish
legislative intent that the funds generated from this
fee will be directed back to the Department of
Transportation for the repair and maintenance of state
maintained roads. It does not create a dedicated fund.
Section 3: Adds a new section into the uncodified law
of the State of Alaska
This section outlines that the act will apply to all
tire sales and stud installations on or after the
effective date.
Section 4: Effective Date
This Act would take effect on July 1, 2017.
CHAIR STEDMAN thanked the sponsor.
1:42:10 PM
LANCE MEARIG, Chief Engineer, Department of Transportation and
Public Facilities (DOTPF), presented information related to SB
50.
1:42:39 PM
At ease
1:43:01 PM
MR. MEARIG provided definitions found in the bill. Pavement ruts
are longitudinal depressions in the wheel paths. High traffic
volume, high speed roads are more prone to studded tire damage.
He listed roads susceptible to ruts: Glenn Highway, Seward
Highway, Minnesota Drive, all in Anchorage, and Egan Drive in
Juneau.
He showed a picture of rutting evidence caused by studded tires.
1:44:12 PM
SENATOR WILSON asked if the tires on the compact car in the
picture fit the ruts.
MR. MEARIG noted there are a range of vehicle sizes. He
clarified that it is basically light duty cars, trucks, and
SUVs, that use studded tires.
MR. MEARIG showed a photo of Eagle River Loop Road pavement
sampling with 13,000+ vehicles per day. The base material is
flat, and the rutting exists only in the pavement.
MR. MEARIG noted that intersections and corners with heavy
vehicle use results in deformed pavement in warm weather.
1:48:00 PM
MR. MEARIG showed a map of states that have restrictions and
prohibitions for studded tires. Alaska has a prohibition on the
weight of studs over 1.1 grams. The bill proposes to change that
to .5 grams.
1:48:34 PM
SENATOR BISHOP asked when the asphalt was laid and what the mix
design of the asphalt on the road is.
1:49:13 PM
MR. MEARIG offered to get back to the committee with that
information.
He turned to safety and environmental issues related to ruts
made from studded tires on icy, dry, and wet roads. Studded tire
use on bare pavement generates dust.
1:50:27 PM
MR. MEARIG related what DOTPF does to address rut damage. He
explained that rut depth of 1/2 inch triggers a project to
address rut repair; usually a 2-year turnaround to bid-ready
plans. A typical fix: mill-and-fill in travel lanes. DOT does
have a hard aggregate policy; it stipulates the use of a harder
aggregate in the asphalt mix when the traffic volume exceeds
5,000 vehicles per lane in areas prone to stud use. He addressed
potential fixes such as micro surfacing - a mix of aggregate,
polymerized asphalt, and water that is used to fill ruts using
special paving equipment. Within two hours the road is open to
traffic.
1:52:59 PM
MR. MEARIG addressed winter driving issues. He spoke of
automobile and tire technology improvements which make winter
driving safer. There are a limited range of conditions in which
studded tires outperform alternatives. On packed snow conditions
and icy surfaces, studded tires are better.
1:55:32 PM
CHAIR STEDMAN recalled that several years ago there was
discussion about using harder aggregate. He asked if it was
successful and if the bill relates to that.
MR. MEARIG thought the policy was in effective in 2013 or 2014.
Harder aggregate has been tested on Egan Drive in Juneau and on
Tudor Road in Anchorage, both having positive results. He noted
that there is difficulty finding sources for the mix and there
are higher costs associated with hard aggregate.
1:57:09 PM
SENATOR EGAN recalled that when Egan Drive was repaved it lasted
a long time; the aggregate came out of Washington and Southern
British Columbia. He asked whether Alaska has sources of hard
aggregate.
1:58:05 PM
MR. MEARIG replied that there are two sources near Cantwell,
Alaska.
1:58:29 PM
SENATOR EGAN thought those would be less expensive.
MR. MEARIG said there is some discussion about that. Two
projects on the Glenn Highway are currently using Cantwell
aggregate.
SENATOR EGAN asked if the new polymerized mix would be equal to
or better than the hard aggregate.
MR. MEARIG explained that the polymerized mix is a quick, short-
term, less expensive fix.
1:59:42 PM
SENATOR WILSON asked how many vehicles have studded tires.
MR. MEARIG said he did not know but the department will start to
research that shortly.
SENATOR WILSON noted different types of studs and asked about
their impact.
MR. MEARIG said the heavier the stud, the more damage it will
cause.
2:00:53 PM
SENATOR WILSON related that he commutes to Anchorage and opined
that the Department of Transportation and Public Facilities
(DOTPF) has problems with pavement materials used to repair the
road causing more damage than studs. He asked about other causes
of road wear.
2:01:59 PM
MR. MEARIG replied that traffic alone causes road damage, but
studded tires accelerate the damage considerably. He said DOT
has done a measurement of performance and can designate normal
wear without studs and compare it to the Glenn Highway.
SENATOR WILSON referred to the motor fuel tax which provides no
increase in services. He asked if there will be an increase in
road repairs due to this feed or less damage to roads due to
fewer people purchasing studded tires.
MR. MEARIG said he did not have that information.
2:04:51 PM
SENATOR BISHOP said he used to drive the Glenn Highway three
days a week and he used to "split his tracks". He suggested that
to extend pavement life, the department might educate the public
to drive outside the ruts. He said inevitably the road will rut.
CHAIR STEDMAN asked Mr. Mearig to get back to the committee on
DOT's expectations on what is causing road wear, the cost
benefit of harder aggregate, and what sources might be available
to extend road life.
He spoke of maintenance catch-up being an endless circle.
2:08:12 PM
MR. MEARIG pointed out that DOT studies show it is more cost-
effective to use the hard aggregate. He offered to provide
further information.
2:08:43 PM
CHAIR STEDMAN opened public testimony on SB 50.
2:09:30 PM
JAMES HARPSTER, representing himself, testified in opposition to
SB 50. He referred to several articles that maintained that high
taxes on studded tires are not cost effective. He asked them not
to tax the people.
2:11:20 PM
ANNETTE HARPSTER, representing herself, testified in opposition
to SB 50. She suggested the aggregate is the problem and a
harder mix needs to be used. She opined that the people who use
studded tires should not be penalized.
2:12:43 PM
JUDY SNYDER, Owner, Diversified Tire, Inc., testified in
opposition to SB 50. She provided examples when studded tires
are needed. She stated that studded tires are needed for safety
purposes by reducing the number of car crashes, they save auto
insurance costs, and save the state money. She encouraged law
enforcement to enforce studded tire laws.
2:15:07 PM
DAVE SNYDER, Owner, Diversified Tire, Inc., testified in
opposition to SB 50. He stated that removing studded tires would
result in roads that are polished. He suggested rubber tires be
used on highways. He questioned whether Cantwell aggregate was
ever used on the highways. He said heavy-duty studded tires are
available everywhere and are not outlawed.
2:17:21 PM
STEVEN WORTHAM, Business Owner, Alyeska Tire, testified in
opposition to SB 50. He encouraged DOT to research the
technology other countries use to increase traction. He did not
know about the existence of a .5 gram stud. He voiced concern
that the tax is a short-term quick fix. He said a June 2017
implementation of the tax presents a burden on his business.
2:21:50 PM
FRANKLIN WORTHAM, Alyeska Tire, testified that he concurs with
Steven Wortham's comments.
2:22:25 PM
RICHARD NORDNESS, Executive Director, Northwest Tire Dealers
Association, testified in opposition to SB 50. He said tire
dealers have the responsibility to provide customers with the
best safety for winter driving. He thought the added expense of
the tax was unfair to tire companies and the elderly. He
referred to a University of Alaska study on studded tires that
concluded that studded tires have a positive financial impact on
the economy. He noted that tire technology has improved, but
manufacturers believe a studless tire needs some additional
help. The studless tire improves vehicle surface traction on icy
roads, but is not as good as a studded tire, according to a
study in Washington State.
GARY WESSEL, Manager, Bruno Wessel, Inc., testified in
opposition to SB 50. He said his company is a supplier of studs
to North America, including Alaska. All areas with winter
driving conditions have had conversations about studded tires
and road rutting. He maintained that all vehicles contribute to
road ruts, especially heavy vehicles.
MR. WESSEL corrected several of the sponsor's statements. He
maintained that there is not a single study that shows a stud-
less tire provides better traction than a studded tire. Consumer
Report does not test studded tires. He said Japan reports that
the increase in air pollution is more due to increased sanding
of the roads after tire studs were banned. He was against the
idea that tires were being taxed because of safety reasons.
He continued to say that the tax is going to increase costs to
the consumer and insurance rates will go up due to an increase
in accidents. He offered to share the data he has from being in
the tire stud industry for 40 years.
2:30:11 PM
DAVID NEES, representing himself, testified in opposition to SB
50. He pointed out that there are no fiscal notes to address how
the tax will be applied. He asked how the tax would be spent by
DOT for resurfacing. He noticed that in the summer drivers are
still driving with studded tires on and he suggested enforcing
the law. He concluded that he is against the increase in the
cost of studded tires.
2:32:34 PM
ED MARTIN, Partner, Key Construction, testified in opposition to
SB 50. He discussed the safety issues and maintained that ruts
are caused by heavy trucks and soft asphalt pavement. He made
suggestions for DOT and how to earn revenue for the state.
2:37:07 PM
CHAIR STEDMAN closed public testimony on SB 50.
2:37:35 PM
CHAIR STEDMAN asked about the availability of stud sizes.
2:37:47 PM
SENATOR GIESSEL offered to provide that information.
CHAIR STEDMAN asked DOT to get back to the committee on their
questions.
2:38:46 PM
SENATOR BISHOP referred to a caller from Wasilla and said he
believed that aggregate is moved by rail, not highway.
2:39:15 PM
CHAIR STEDMAN noted the short life of asphalt has been a big
concern the last several years.
2:39:31 PM
SENATOR GIESSEL pointed out that road construction science
advances every year. She asked DOT to consider aggregate sources
in Juneau, to provide information about spring road weight
restrictions, and to respond to the question whether rubberized
asphalt has been tested in Alaska.
2:40:37 PM
She noted the number of studded tires in use in Alaska is about
10-20 percent, according to the Department of Revenue's totals
from the $5 fee. She emphasized that this is a fee, not a tax.
She referred to the statute in members' packets that addresses
the tire fee.
She offered that Alaska State Troopers use the new technology
tires. When she refers to studless tires, she is referring to
two brands of a softer rubber tire. She referred to the
Washington State Summary on the new softer tire.
She addressed current testing in Anchorage on high friction
surfaces at intersections designed to grip tires and assist with
stopping and accelerating. She requested that DOT provide
information on that testing.
She concluded that studded tires affect driver behavior,
affording a sense of power and causing overdriving.
2:42:37 PM
CHAIR STEDMAN suggested the sponsor work with DOT for the
answers to those questions.
He held SB 50 in committee for future consideration.
2:43:13 PM
There being no further business to come before the committee,
Chair Stedman adjourned the Senate Transportation Standing
Committee at 2:43 p.m.